Calculating a car loan helps you to get an idea of the budget that you can spend on purchasing a car. Depending on the possible periods and the amount that you can miss each month, you will arrive at a total amount that you can spend entirely on the car or partly on the car and partly on additional costs such as insurance and taxes. Most lenders allow you to borrow up to 110% of the purchase value of the car to cover the additional costs. Before you start to calculate your car loan, you must first determine whether you want to buy a new or used car. There is a big difference in the interest rate that is applied to the age of the car.
The new car
You can calculate a car loan for a new car via one of the many online tools. The first option is to contact each lender separately or search online, but it is much faster when you can perform all simulations in one go. You choose a total amount of what you want to borrow for the purchase of a new car. The system will then calculate your car loan, taking into account the different interest rates that are applied by each lender. You get a clear overview of options and costs and you know in one click which financial institution best suits your needs and which is the cheapest.
The second-hand car
With a second-hand car it is slightly less easy to calculate your maximum car loan since not every lender offers the same products. The maximum age of the car to qualify for a car loan can vary per provider and this has a major impact on the interest rate applied. If the car you want to buy is a little older, it pays to find out from which provider a car loan is still applicable and from which not. If a car loan is no longer an option, you must take out a personal loan, which is a lot more expensive. Take this into account when you are looking for a car. To get an idea of your budget, you can already calculate your car loan here and request multiple loan quotes.