Vehicle finance calculator for best car deals
Buying a set of wheels can be a difficult or an easy task. If you are good at saving money and you have a great monthly budget, you simply find a good dealer with reasonable purchase prices.
If however, you need a car loan, there are several things to think about. While buying a new vehicle is exciting, you have to make the best decision for yourself in the long term.
You might decide to borrow money directly from a finance company, bank, or credit union. In the terms and conditions, you will agree to pay back the money, plus other fees, over some time. Our vehicle finance calculator is here to help you make the best decision. CompareLoans only showcases registered credit providers, so you can be confident you’ll be dealing with responsible lenders.
Disclaimer: The results provided by our car finance calculator involves payment estimates only. It would be best if you did not rely solely on the results when taking a car loan. It is always best to seek advice from a qualified person before applying for a car loan.
How can a car loan calculator help you?
The auto loan calculator on this page helps you calculate the monthly payments you have to make after taking a car loan. Firstly, you start by choosing the price of the automoible that you are interested in buying. You can then use the sliders to choose the time you need to pay back the credit. You’ll then see monthly repayments as well as the interest rate in the table below the calculator.
What you should know before taking out a car loan
When you qualify for a car loan, it is very easy to receive the money you need. Nevertheless, a car loan differs from a personal loan because it is only used to purchase a ride.
The car that you buy is used as a backup for the debt. What this means is, if you fail to make the repayments, the financial services provider can take your ride. Another thing is, the car loan gets repaid in fixed monthly payments, just like a mortgage.
It is important to note, however, that the lender owns the car until you finish paying the total amount of the credit.
Choose the monthly instalment you can afford
Most people have a general idea of how much they can afford to borrow in total. It is, however, not easy to calculate how much you can afford to pay back per month. A car finance calculator gives you a rough idea of how much each monthly payment is going to be.
Still, it can’t help you figure out how much you can afford to pay back each month. For this, you need to consider many factors, such as the cost of living and how it affects your repayment ability. Also, think about other factors that might happen in the future, such as taking unpaid leave.
How much does car insurance cost?
Some owners believe that car insurance is expensive. Yet, accidents happen and driving without insurance might leave you in financial trouble. You cannot, however, insure a car before you buy it. The best you can do is research and find out which option is best for after your purchase.
Checking your credit score
According to the National Credit Act, every South African gets one free credit report per year. You can get this annual free credit report from any credit bureau in South Africa. If you want an extra credit report, you have to pay a small fee. Check out this article if you are after tips to improve your credit score.
What you need to get the best car loan
After using the vehicle finance calculator, and making your decision, you will need to provide a few documents to your chosen lender. These documents include:
- proof of income;
- bank statements;
- a South African ID; and
- proof of residence.
Once everything is done, and your loan is approved, you can then go and purchase your desired vehicle.
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