Car loaning today is gaining large speeds. It is very easy to arrange a loan for a car today and this can be done both in a car dealership where you decided to purchase a car, and in most banks. Turning to the bank in order to obtain a loan, people primarily pay attention to the interest rate on the loan. In fact, the real value of the loan may be higher than the declared. Let’s try to calculate the cost of car loans yourself.
The amount of the initial contribution of the amount of the car loan includes the cost of the car, as well as the interest for using the loan for a certain period. If the borrower pays the first contribution immediately, then the amount of this contribution is deducted from the cost of the car. The rest of this is the size of the main debt that we need to determine at the very beginning.
Monthly interest
The amount of the main debt is distributed by the number of months or years of loan. Often, a scheme is used for car loans when payments on a loan are differentiated over time, and decrease as payments. In this case, interest is accrued monthly and also reduced as payments. In the case of paying a loan equal (annuity) payments, interest in each month will also be the same. With annuity loan, interest is calculated easier, but it should be borne in mind that the total cost will be higher.
Bank commission and lump -sum payments
In addition to the amount of the main debt and the calculated interest, do not forget about various commissions and one -time payments that you can encounter when applying for a loan, such as car insurance, insurance of a car owner, a bank of the bank for maintenance of accounts and drawing up a loan, as well as other payments provided for by various banks.
In any case, such a calculation may not be complete and not take into account everything. In this regard, employees of banks and credit organizations are warned against independent calculation of car loan. After all, the borrower may not take into account all the factors that the bank focused on. Such factors can become not only the term and amount of the first contribution, but also the car brand (domestic or imported), its year of release, as well as personal data of the potential borrower. Therefore, only employees of a particular bank or car dealership will be able to provide accurate and specific information on the loan provided by them, taking into account all the nuances of their work and the wishes of the customer.