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Car Finance Repayment Calculator
Car Finance Repayment Results
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How to Calculate a Car Loan

Use this calculator to work out how much your month car loan repayments will be. The car loan calculator will also provide an illustration of how much you could expect to repay each month based on different repayment periods. If you are thinking of taking out a car loan it is important that you:

The car loan calculator will provide your a monthly interest repayment over 1 year, 2 years, 3 years, 4 years, 5 years, 10 years and compare them to a monthly repayment period of your choosing (so you can create your own car loan illustration).

Considerations before taking out a Car Loan

  • Affordability: Be sure you can really afford to make the car loan repayments. Only you really know if you can afford a new car or not and taking out loans which you will struggle to repay will only cause you financial hardship and pain in the future.
  • Shop around: It always pays to shop around and see what deals are available. Most banks and building societies run promotions at various points of the year. Never assume that one lender is better than the other, look for the good deals as they could save you a lot of money. Banks are normaly cheaper than car dealerships!
  • Check the Interest Rate: The most common mistake that lenders make is not fully reading and understanding the interest rates applied to their car loan. Make sure that the catchy low interest rate is the one you are getting. Most lenders advertise at low interest rates to get you in the door but you are likely to find that achieving the low rates means borrowing more than you budgeted for or taking out the loan over a longer term, this will mean you repay much more money! Don't be tempted!
  • Borrow Little, Repay Quickly: The best car loan is one repaid quickly. A quick repayment means less interest paid and less stress about your debt.
  • Pay Day Loans: Pay day loans are brilliant if you want to destroy your financial credibility, get yourself into spiraling debt and have years of stress and anxiety over your finances. DO NOT use Pay Day lenders and certainly not for a car, there are much better options. They do not care about you or your finances and will destroy your life simply to make money. At iCalculator, we seriously hope that the government takes measures to outlaw these morally and ethically corrupt businesses.
  • Don't Lend at All! It's difficult to avoid taking loans in modern society. Modern life is about consumerism and spending. Our grandparents survived and had healthy life's by getting by and enjoying the rare treats. There is a lot to be said for living a simpler life without financial stress. If you can, save. Make that reward or treat worthwhile my making your money work for YOU and not for someone else.
  • Personal Loan or Car Loan? Personal loans normally offer better interest rates than car loans but your really should shop around. Second hand dealerships normally offer ridiculous APR rates and will push you to take the loan, often showing a lower APR that you will receive. Used car loans typically provide large commissions for used car dealerships and will rarely offer a better interest rate that a personal loan. If you are looking to buy a new car, shop around and be patient. Almost every dealership offers a 0% finance deal at some point in the year. You can get your dream car and a dream interest rate if you are patient and buy wisely.
  • PCP - Personal Contract Purchase PCP's have become increasing popular over the past few years as they allow those with no deposit to access the same/similar monthly car rental prices as those who put a deposit down. PCP's can be a good option but beware, depending on your preferences the potential risks of a PCP loan are:
  1. You DO NOT own the car: the car is legally owned by the finance company, NOT YOU. You do not own the car until the final payment has been made.
  2. Milage Restrictions PCP contracts are normally include distance related caveats. You will be limited to the annual mileage you choose upfront at the point of contract. If you exceed the PCP milage specified you will be charged excess mileage fees if you decide not to purchase the car at the end of the PCP contract.
  3. Cancelling a PCP Contract If your circumstances change and youwish to cancel your contract and return the car, there is likely to be a contract break penalty fee. The amounts charged for exiting a PCP contract vary, check your agreement for more details.
  4. Modifications, Pimp those Wheels! or not! Did we mention, IT'S NOT YOUR CAR. You cannot modify the car in any way without permission from the finance company. If you do modify the car without permission you will face a penalty at the end of the contract unless you choose to buy.

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