Calculating a car loan helps you to get an idea of the budget you can spend on buying a car. Depending on the possible installments and the amount that you can spare each month, you will end up with 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 car's purchase value to cover additional costs. Before you start calculating your car loan , you need to 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. A first option is to contact each lender separately or look it up online, but it is much faster when you can run all the simulation at once. 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 applied by each lender. You get a clear overview of options and costs and know in one click which financial institution best suits your needs and which one 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 be eligible for a car loan can differ per provider and this has a major influence on the interest rate applied. If the car you want to buy is slightly older, it pays to find out which provider a car loan still applies to and which one is not. If a car credit is no longer an option, you must take out a personal loan , which is much more expensive. Be sure to keep this in mind when you are looking for a car. To get an idea of your budget, you can already calculate your car loan here and request several loan quotes.