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Post by troycuthers on May 29, 2019 1:19:27 GMT
Online auto loan calculators on bank websites are an easy way of tweaking the many factors that affect the overall cost of your auto loan. Although they only provide a rough estimate and the bank’s actual offer comes after you submit your loan application, they’re useful in structuring your loan to minimize costs and as a starting point in comparing auto loans among banks. To figure out which is the best offer, try this: multiply the monthly payment by the payment terms and add the down payment to arrive at the total amount paid for the car. Then get the difference between that and the selling price of the new car (or appraised value for a used car). That’s how much more you’re paying in interest compared to if you just bought the car with cash today. You can take it a step further and divide that amount by the loanable amount. That’s your interest rate over the loan term. You can use either the interest amount or rate in comparing different bank offers, whichever works better for you. Just make sure you’re comparing loans with the inputs or it won’t make sense.
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Post by rebeccamckull on Dec 16, 2023 8:58:29 GMT
Since personal loans are typically unsecured, borrowers don't have to put up assets, such as a house or a car, as collateral. This reduces the risk of losing valuable assets if you're unable to repay the loan.
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