The Car Loan Calculator
The Car Loan Calculator
Author: Anthony
Can I afford to get this vehicle? What price vehicle can I afford to get? Obviously you can use an online car loan calculator to determine the price car you can afford to buy by referring to the monthly loan payments amount. Online car loan calculator can be easily use by everyone for any sort of credit circumstances. It is a special type of financial calculator that allows the calculation of monthly car loan amount. By using a conventional calculator, it is not practical or easy to calculate the monthly loan amount. Therefore, online car loan calculator is the most practical way.
It is very easy to use car loan calculator at carlist.my. by referring to a set of simple steps to reach your calculations. All you need to do is fill in the required fields and hit the “Calculate” button to get the monthly installment amount. On the other hand, this car loan calculator does not include various taxes, insurance and other costs while building the calculations. The reason is because a car loan calculator only assists you in getting the approximate values.
Car loan calculator can also facilitate you when you are concern on your refinance loan. You can make calculations while taking into account the new interest rate and loan amount. At the end you can compare the results with your earlier loan to identify what is the best decision.
The car loan calculator able to provide you the results instantly! You are under no obligation when you use car loan calculator at Malaysia Car Loan Calculator. So let’s follow the steps and start calculating it.
Step 1
Let’s assume you have no idea of the price of car you can afford to buy, but you know generally that you can afford to pay about RM450 each month. Let’s say you also know you can pay about RM20000 as a down payment. So here’s how we’ll start.
We will presume at the price of the car at the price RM50000, with a 5 years loan term. Plug in 4% for your loan interest rate. Now click the Calculate button and get the results, which should be as shown below:
Price (RM)
50,000
Deposit Amount (RM)
20000
Interest Rate (%)
4
Repayment Period (Year)
5
Calculate!
Monthly Installment (RM)
RM600
We now see that the monthly payment is RM600, much more than the RM150 we can afford.
Step 2
Let’s try adjusting some numbers to get the monthly payment down. First, let’s reduce the car sale price to RM45000, as shown below:
Price (RM)
45000
Deposit Amount (RM)
20000
Interest Rate (%)
4
Repayment Period (Year)
5
Calculate!
Monthly Installment (RM)
RM500
The monthly installment now is RM500. That is better and is getting closer but still not the RM450 that we want. So let’s make another adjustment.
Price (RM)
43000
Deposit Amount (RM)
20000
Interest Rate (%)
4
Repayment Period (Year)
5
Calculate!
Monthly Installment (RM)
RM460
Finally, our monthly installment is now a very close to RM460, only RM10 off our goal and almost certainly good enough. Hence, we now see that we can afford a RM43000 car if we get a 4% used car loan for 60 months.
Article Source: http://www.articlesbase.com/cars-articles/the-car-loan-calculator-2746712.html
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