Calculate car loan – this is how you should proceed
A new car is associated with considerable costs. The car has to be paid for, usually the strong brand and AU are renewed, and the vehicle has to be insured and taxed. A car salesman once added that one could also not expect to get the car with a full tank. In particular, novice drivers are often surprised at how much the new car will cost them. They often resort to bank funding. But before that, it is important to carefully calculate the necessary car loan.
Calculate a car loan: What is the term “car loan”?
Car loans are loans that banks grant specifically to be able to buy a used or new car. The borrowed money may not be used for any other purpose. But where do the costs start with the purchase of a vehicle and are therefore covered by the car loan and where do they end? If you want to calculate your necessary car loan, this question is of enormous importance. The puristic variant of a car loan says: It can only be used for the purchase price. However, this variant is extremely rare.
Usually, some scope for the new production of strong brand and AU is also allowed. In fact, the credit line is actually flexible. In theory, you can apply for significantly more money than you actually need. However, when examining the application, the necessary costs for the purchase of the vehicle are added by the financial institution. Any difference between the requested money and the actual costs is deleted from the loan amount. However, some banks also allow (especially so-called car banks), insurance (liability, second car, etc.) and taxes to be repaid via the loan. Before you can calculate your car loan, you first need a precise catalog of benefits, which your own insurance actually offers.
Calculate a car loan: use aids
If you know the service catalog of a car loan offer and if you agree, you can start to calculate the actual car loan. This happens in two phases, for which the bank provides you with the appropriate tools in the form of an online loan calculator: First you determine the necessary loan amount yourself, which can also be checked by the bank, but then you deal with the question which is much more important for the financial institution: how do you repay the car loan? Banks offer flexible loan terms that start at twelve months and often last up to 84 months.
It should be borne in mind that although the longer the loan term is chosen, the monthly rate decreases, but the interest burden increases, so you actually pay more and more and a long-term financial burden becomes a problem for many people at some point. The reverse conclusion, however, cannot be that the shorter the loan term, the better. The monthly installments would otherwise skyrocket and threaten normal living standards. If the rate is too high (more than ten percent of the monthly net income), the bank will probably not agree to the loan application.