How Do Car Finance Calculators Work?

Written by Marsh Finance | Aug 8, 2024 2:00:00 PM

In This Blog

Why car finance calculators are important

Tips for using the car finance calculator

Introduction To Car Finance Calculators

A car finance calculator is the perfect tool to figure out what finance you can get. Work out monthly payments, interest rates and other car loan figures. At Marsh Finance, our finance calculator looks at your credit score, borrowing amount and repayment term to work out a rough estimate of your monthly repayments. With this information, you can get an idea of what your car finance agreement may look like.

Importance Of Using A Car Finance Calculator

A car finance calculator is a really helpful tool. Car finance calculators can help predict your finance payments. On top of this, you get a good idea of what to expect if you finance. If the term doesn’t suit you, you can save time by not applying. Alternatively, seeing terms that work with your budget gives you the confidence to apply. The calculator is really good for people with poor credit. If you have a weak credit score, being able to see your options is key. A car finance calculator can help you do this.

Step By Step Guide On Using Car Finance Calculators

1. Gather information, such as the car’s purchase price, the deposit amount, and the loan term.
2. Use the calculator here.
3. Enter the amount you want to borrow, the loan term and your credit score.
4. Click the calculate button to get a predicted monthly payment.
5. Adjust variables such as repayment terms and the amount to borrow to find a suitable option that fits your budget.
6. Compare different payment plans and interest rates to find the best deal.
7. Repeat with other calculators to find the best option for you.

Types Of Car Finance

Here at Marsh Finance, we offer two types of finance, personal contract purchase (PCP) and hire purchase (HP). In a hire purchase, you pay a deposit upfront and then pay monthly payments over a period of time. Hire purchase has lots of benefits. These include;

Lower monthly payments
A fixed interest rate
The option to buy the car at the end of the term.
Simple to understand and easy to arrange.

HP is perfect for people who want to own a car but can't afford to pay for it upfront. PCP lets you pay less each month. With PCP, you pay smaller amounts each month for your car. At the end, you can choose to buy it, return it, or get a new one. PCP tends to be cheaper per month than HP. If you want lower monthly payments and flexible ownership, PCP could be your best bet.

Tips For Using A Car Finance Calculator

Car finance calculators can help you find the best financing options for your new car. These are our top tips for using a car finance calculator:

Collect all essential details. You need information handy before using a car finance calculator. This includes the amount you want to borrow, the loan term, and the interest rate.
Be realistic about your budget. When using a car finance calculator, be honest about what you can pay each month. Don’t stretch your budget too thin to get a car that you can't afford.

Have a think about different loan terms. By playing around, you can find a plan that suits you.

Follow these tips and get the best possible deal on your new car.

Knowing what you'll pay is important. Use a car loan calculator to figure out how much your monthly payments will be. This helps you make a good decision. A car finance calculator is your secret weapon. Figure out how much you can afford to pay each month and see if you can get a loan. This helps you get the best deal when talking to car dealers. Here at Marsh Finance, we offer a free car finance calculator that shows you the repayment amount, the best available rate based on your credit score, the total cost of credit and the total repayments. Once you have the information you need, apply for car finance using our quick and easy application form. Completing the form doesn't affect your credit score!

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