Buying a new car is a major investment that requires too much research, decision making and financial calculations, especially when you are finance cars in India. A car loan calculator helps you make an estimation of the total loan cost, interest rate and loan term. It works as an ordinary loan calculator, though it also calculates the required loan amount by subtracting the deposit amount from the total price of the car.
The calculator computes payable interest amount and monthly payments (EMIs) on an auto loan from the car price, loan term, deposit and APR (annual percentage rate). You simply need to enter the amount, the interest rate and loan term, and the calculator will evaluate some important figures, enabling you to help figure out the total repayment of the car finance in India.
The calculator works on the following formula – Monthly payment = [rate + rate / ((1 + rate ^ months – 1)] x principal car loan amount. The first figure is the total cost of the loan, including all interest, and second one signifies the total interest amount and regular monthly payments that you stand to pay. Additionally, the car finance calculator breaks down the EMIs for providing the monthly payment and interest on the capital along with the remaining balance.
A car loan calculator not only provides quick and accurate estimation of the car loan, but offers several other benefits as well. Some of the advantages are listed below.
It saves time
It’s difficult to get accurate calculation of the loan amount, monthly payments, interest rate and loan term without using a car finance calculator. It’s quite time consuming, too. The calculator is simple and reliable tool that will save your time, consumed in complicated loan calculations.
It might help save money
When you have estimated calculation of the loan amount, interest rate and loan term, you can compare multiple loan options and choose the best one for you. Make sure that your car monthly payments fit in your budget.
It helps you know your options
After knowing the estimated loan cost and other details, you will be able to choose the most suitable option. Many car dealers offer multiple car loan options and try to sell the one with higher interest rate, especially when you have poor knowledge. First, analyze all the offered options and pick the best one for you.
Get a great deal
Once you select and finalize the car loan, try to negotiate with the car dealer. If you are paying a down payment of 15% - 20% or have a good credit score, there is a chance that dealer might get convince and offer a great deal within selected loan option.