Car loan calculator - UK automobile finance

A car loan calculator is a simple but very useful tool, in working out how much it is going to cost you to finance your automobile in the UK.

Use this link provided by the FSA for an online tool:
http://www.moneymadeclear.fsa.gov.uk/tools/loan_calculator.html

Where can I find a car loan calculator?

All good companies offering online car loans will provide either a form to obtain an instant quote or a loan calculator. Some will give you access to both.

How do they work?

A loan calculator will show you how much you will pay back based on the amount you need to borrow. This will help you decide how much you must pay each month, and how long you'll need to repay the loan in full. Ultimately, it will help you decide whether or not you can afford the car of your dreams.

There are two types of loan calculators. Some will ask you to type in the total loan amount that you require, along with the loan term, and will then show you how much that loan would cost each month over the specified repayment term.

Others work the opposite way round: you type in how much you can afford to pay each month, and you will be given different loan options - different loan amounts over varying terms. Some loan calculators will give you the option of using both of these calculations.

Words you might come across on the car loan calculator:

Interest rate - the annual interest rate applied to the loan

Loan amount - the total amount of the loan

Monthly payment - the amount repaid each month for this loan

Term - the number of years taken to repay the loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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