Before taking out any sort of finance, it is important to workout your budget and stick to it.
Impulse purchasing can lead to strife, especially when we’re talking about a purchase as significant as a car. A night of online shopping can mean you’re eating 2 minute noodles for a week, taking out a car loan beyond your budget however could end up impacting your lifestyle for years.
Our car loan calculator will help you gain an understanding, and assist in answering the important questions you should be asking yourself before taking out a loan.
Once you know how much you can afford each month on a loan, you can work the figures backwards below to get an indication of the amount you could potentially borrow over different loan terms. This tool is purely to be used as a guide, but it will mean that you will be more informed when you’re ready to approach a broker for a tailored quote.
The car loan calculator tool is hosted for illustrative purposes only and does not constitute a finance offer from Credit Capital Pty Ltd. Depending on personal information your car loan repayments will vary. The calculations do not include any fees and other charges that may apply. The calculation provided by Credit Capital Pty Ltd using our hosted car loan calculator tool does not constitute a loan approval, repayment plan or any financial advice or offer from Credit Capital Pty Ltd.
Any calculations applied using the Credit Capital car loan calculator are only intended as a guide estimation. You must talk to a car loan consultant to get a quote tailored to your individual circumstances if you would like an accurate quote.
Some of the example fees that are not included are, stamp duty and other government fees.
If you do consider taking out a loan using our services all the appropriate repayment information will be provided at that time. Please consult a financial advisor if you require personal advice regarding the suitability of any financial products for your individual circumstances.
Car loans come in many shapes and sizes, and the market itself is always changing. The reason why there are so many lenders in the market with so many different rates on offer, is because every individual is different, with different needs, so finance products vary to suit every individual. One product isn’t necessarily better than others, but it may suit your individual needs better. If everyone had the same circumstances and the same needs, then working out which lender is best suited to you would be much easier as there would probably only be 1 lender with 1 rate.
Many people fall into the trap of sticking with their own bank for all lending, or taking out a car loan with the dealership’s in house finance option, without looking around at other options. Just because a salesman has told you their option is the best, doesn’t mean this is fact, it is simply their job to do so.
When you go through your own bank, or a dealership, they usually only have access to 1 or 2 different products which won’t necessarily be the best suited to you. It can sometimes be a case of trying to jam a square peg through a round hole when taking out finance through a provider with limited options available. By talking to a finance broker with access to a broad range of options, rather than applying through a lender directly, you can attain general advice on all available products to workout which one is best suited to your needs. When you attain a quote from a broker, it is usually the best on offer, not just the best that they can access.
As we go through life, we have successes, we have failures, and we encounter challenges that cause us to adapt to overcome. This is all part of the learning experience we call living. This process of evolving is true not just for living organisms, but it is also true for businesses as well. A successful business adapts to its surroundings, learns from its successes and failures, and changes to overcome challenges. This could not be more true for banks and finance companies as well.
Rate for risk is a term we hear a lot these days, but what does it all mean?
Lenders have a team of statisticians constantly assessing their loan data to determine their best and worst performing demographics i.e. who is most likely to repay their loan, and who is most likely to default. Their lending criteria and interest rates offered to each demographic are updated consistently based on their findings.
As lenders don’t share data, each individual lender’s rates and lending criteria will move independently of each other. This means that just because lender ‘x’ has the best deal for you at one point in your life, it doesn’t mean this will always be the case. If you fall into the trap of sticking with the one lender throughout your life, you could be leaving money on the table and be spending far more on fees and interest than you should be whenever you borrow money. It is important that every time you go to borrow money, you look around and compare options to ensure you’re always getting the best deal.
The best way to ensure you are always getting the most value out of your money when financing, is rather than approaching lenders directly, is to apply through a broker. A good broker has access to a large portfolio of lenders, so has a different product for all situations. An experienced broker knows their lenders, knows their rates, knows their lending criteria, is always informed of any policy updates, but most importantly -> they always knows how to get the best deal for their clients.