Before buying a car with finance, you'll want to know how much it's going to cost. The best way to do this is with a car finance calculator, which gives you an idea about how much you might be able to borrow as well as the cost of monthly repayments. But how do you calculate the cost and are there any calculators online that can help? Here, we've got everything you need to know about car finance calculators and how they can help you buy a new vehicle.
How do I calculate the total cost of car finance?
A car is the second-largest purchase many of us will make, so it a pretty big deal and you'll want to feel confident before making the purchase. One way of doing that involves using a car finance calculator, but how do you calculate the total cost? You will need to factor in elements like the vehicle's sale price, deposit amount, and interest on the loan over the entire period. It's also worth thinking about other financial aspects, such as the cost of insurance, tax, MOT, car servicing and fuel.
How to calculate car finance early settlement amounts
If you have a car on finance, you can decide to pay off the amount owed early. Often, the lender will give you a settlement figure, and while it might seem like you need to add up whatever is left from your monthly payments, it’s actually a little bit more complex. It also depends on the type of finance you have, such as PCP, HP, personal loan or a lease deal. Ultimately, the lender needs to calculate every aspect of the loan, including the amount still owed and how long you have left on the terms. Once they've done that, you'll get an early settlement figure.
Car finance part exchange calculator
Part exchanging your car with finance is totally ok, and many drivers get a new motor while still owing on their current one. Of course, the finance will need to paid off on the existing car, which means getting enough for the vehicle to pay off its outstanding finance. To do this, you can use a part-exchange calculator and see whether it's viable to get a new car and receive enough from your old vehicle to cover the finance.
The best online car finance calculators
There are plenty of online options where you can calculate the cost of car finance. They save you from needing to do it manually and give you an indication of how much you can borrow and what it will cost. Some of these options include, Halifax, Money Super Market, Lloyds Bank, Carplus, Compare the Market and Carmoola. That's right; we have our very own car finance calculator where you can see the cost of buying a new vehicle. Check it out.