Using a Finance Calculator

Buying a New or Used Car is an exciting milestone, but it also comes with important financial decisions. Understanding your loan options and monthly repayments can feel overwhelming. That’s where finance preparation tools come in handy. They help you plan your budget and make informed choices before you commit. In this post, I’ll walk you through how to use a finance calculator in Australia, explain key terms, and share tips to get the best deal for your new car.

Why Finance Preparation Tools Are Essential

When you’re looking to finance a car, it’s crucial to know exactly what you’re signing up for. Finance preparation tools, such as online calculators, help you estimate your repayments based on different loan amounts, interest rates, and loan terms.

Using these tools early in your car-buying journey can:

• Save time by narrowing down your options.

• Prevent surprises by showing you the true cost of the loan.

• Help you budget effectively for monthly repayments.

• Empower you to negotiate better with lenders.

  
  

For example, if you want to buy a BMW X3 priced at $70,000, a finance calculator can show you how much your repayments might be if you borrow $50,000 over 5 years at a 6% interest rate. This way, you can decide if that fits your budget or if you need to adjust the loan term or deposit.

Using a BMW finance calculator on a laptop

How to Use a Finance Calculator Effectively

Using a finance calculator is straightforward, but to get the most accurate results, you need to input the right information. Here’s a step-by-step guide:

1. What's the car price - This is the total cost of the Car you want to buy.

2. Take off your deposit - The amount you can pay upfront reduces the loan amount.

3. Choose the loan term - Common terms range from 24 to 84 months.

4. Input the interest rate - This can vary depending on your credit score and lender.

5. Include any fees - Some loans have establishment or monthly fees.

6. Calculate - The tool will show your estimated monthly repayments.

   
   

Remember, the calculator provides an estimate. Actual loan offers may differ based on your financial situation and lender policies.

Using our calculator here https://www.mbperth.com.au/calculator can help you compare different scenarios quickly. For instance, you might see how increasing your deposit or extending the loan term affects your monthly repayments.

What is the 84 Month Rate?

One common question I get is about the 84 month rate. This refers to the interest rate offered on a loan with a 84-month term, which is Seven years. Longer loan terms like this can make monthly repayments more affordable, but they usually come with higher overall interest costs.

Many Financiers will often still provide competitive rates for 84-month loans, but it’s important to understand the trade-offs:

• Lower monthly repayments - Easier on your monthly budget.

• More interest paid over time - The total cost of the loan increases.

• Potential for negative equity - You might owe more than the car’s value if it depreciates faster than you repay in the early stages of the agreement.

  
  

Before choosing an 84-month loan, use a finance calculator to compare it with shorter terms. For example, a 48-month loan might have higher monthly repayments but save you thousands in interest.

If you’re unsure about the best term for your situation, talking to a finance broker can help. They can tailor options to your needs and explain the fine print.

Tips for Getting the Best Car Finance Deal in Perth’s Northern Suburbs

Securing the best car finance deal requires more than just using a calculator. Here are some practical tips to keep in mind:

• Check your credit score before applying. A better score usually means better rates.

• Shop around for lenders. Don’t settle for the first offer.

• Consider a finance broker like MB Perth. We have access to multiple lenders and will find you the most competitive rates.

• Negotiate the loan terms - Sometimes lenders can offer flexibility on fees or interest rates.

• Understand all fees involved, including early repayment penalties.

• Keep your budget realistic - Don’t stretch yourself too thin with repayments.

  
  

Using a finance calculator alongside these tips will give you a clearer picture of what you can afford and help you avoid costly mistakes.

How MB Perth Supports Your Finance Journey

At MB Perth, the goal is to be the most trusted and accessible finance broker in Perth’s northern suburbs. We offer personalised service, helping you navigate the complex world of car and personal loans. Whether you’re buying a New or Used vehicle, or a personal loan, we can:

• Explain different loan options clearly.

• Help you use finance preparation tools effectively.

• Find flexible lending solutions tailored to your financial situation.

• Support you through the application process.

  
  

If you want to explore your options or get a free consultation, MB Perth is a great place to start.

Planning Your Purchase with Confidence

Using our simple finance calculator is a smart first step in your car-buying journey. It helps you understand what to expect and plan your finances accordingly. Combine this with expert advice and thorough research, and you’ll be well on your way to driving your next car without financial stress.

Remember, the key is preparation. Take advantage of the tools and resources available, ask questions, and make decisions that suit your lifestyle and budget. Your next car is closer than you think!

If you want to learn more about car finance options, call Stuart at MB Perth for helpful guides and updates.