Calculate your car loan: read this before you start!
Your old cart has done well for years, but now it is starting to show serious defects. In the built-up area your car has a lot to endure, and a new gearbox still costs between 500 and 2500 USD. Even more expensive is a faulty automatic transmission; those costs can run into the thousands of USD. And we will not talk about a broken timing belt; that can even amount to as much as 10,000 USD. If you have landed with such amounts, then it may be a good idea to sell your car and purchase a new one.
The price tag that hangs on a new car is certainly not nauseous.
There are many models to choose from, each with the latest gadgets. You may have read how well the electric cars are doing – well worth considering and you are helping the environment with it. You can take out a loan for your new car and you will be surprised how good the monthly repayment can be. Calculating a car loan takes some time, because there are often (large) differences between the providers of car loans.
First check with yourself whether you are willing to pay for a new car, or whether a second-hand car might be a better idea. Also calculate whether you pay an advance or take out a full loan. You can certainly catch some money for the car you throw away, even if everything is wrong. Usually there is also a choice between different payment schedules. If you want to pay the lowest possible costs, you go for a low interest rate. With a loan at a lower interest rate, you often have to pay off faster.
If you need a little more space – for example, because you want to put that grave stereo in it – you can spread the repayment over a longer period. You can calculate the cheapest car loan by first looking at the annual percentage rate (APR); that is the annual total percentage that you pay on the loan amount to be repaid. The lower the better of course. Check carefully whether the APR applies for the entire duration, or whether an increase may take place over time; after all, sometimes it can be an entry campaign.
You will usually find a simulator on the websites of banks and credit providers.
You can use it for free to find out what your monthly installment will be. You enter the loan amount and the period you wish to pay off, and within a few seconds you know whether you can buy that beautiful car. The more quotes you request on the websites, the better you can get a picture of the cheapest car loans. So definitely try out various providers and compare them to get the cheapest loan out. Once you have found it, you can usually take out a loan online. And then to the showroom to pick up that beautiful machine. Vroem!