Car Finance Calculator – The car finance industry has never been particularly technology-focused. However, there are a number of ways in which online technologies are revolutionizing how we find the best car finance deal and mobile apps to see the whole process through! In the early days, car finance was only offered by car dealerships and main manufactures. These days, there are a number of car finance broker, banks, building societies and dealerships who can offer a range of finance deals. The most accurate car finance calculator, which helps consumers save money on their deal, was created by UK Car Finance. Let’s take a look at how using a car finance calculator can benefit you.
Table of Contents
What is a car Finance Calculator?
A car finance calculator is a handy piece of technology used to find out what car loan you can expect to receive before you even apply. The calculator uses data from real applications for car finance to give users an idea of how much they can borrow based on representative APR. The calculator allows you to see how much you can borrow for your next car in just a few simple clicks.
How does a Car Finance Calculator Work?
A car finance calculator takes into account 3 things to give you an accurate loan amount.
- Monthly budget. Set your monthly budget of how much you could comfortable and realistically afford to pay each month for the car of your choice.
- Duration of loan. Decide how long you want to pay back your loan over. A car finance agreement is usually between 1-5 years. Having a shorter term can increase your monthly payments but decrease the interest rate offered.
- Your credit rating. Rate your current credit score the get a more accurate quote. Having a better credit score can increase your offered loan amount. If you do not know your current credit score, you can use a car finance checker to see where you fall on the credit scale before you apply.
What are the Benefits Of Using A Car Finance Calculator?
Budget
When applying for finance, your budget and affordability is key. It can affect your chances of getting approved for finance, the loan amount and what car you can get. When setting your budget in the [car finance calculator], you should be realistic. In car finance deals such as Hire Purchase, the loan is secured against the car which means if you can’t make the repayments each month, the lender has the right to take the car off you. Borrowing more money than you can afford to pay back can result in serious financial problems.
Protect your Credit Score
The car finance calculator designed by UK Car Finance has no effect on your credit score and does not run a credit check. It’s a great idea to shop around for finance before you start applying for finance. The smart technology used enables you to see what loan amount you would be offered if you applied. Making multiple applications for car finance in a short space of time using hard search credit checks, can negatively impact your credit score. Using a calculator before you apply can prevent this.
Get the Car You Want
When suing a car finance broker, you can use your car finance deal to get the car you want! You can take your finance deal to any FCA approved dealership across the UK. By using the [car finance calculator] before you visit showrooms and online car dealer websites, you can shop for car within your budget. Use your offered loan amount to see which cars are in your budget.