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How much can you afford to borrow for a car loan

Before setting a foot in the new car or used car dealership, most potential car buyers can benefit from using a car loan calculator to find out how much they can afford.

Car loan calculators make it easy for anyone to take a look at their budget and calculate out the price range that they should be looking into. These calculators are freely available online and can be used quickly and easily without any financial background.

Banks and car lots will be able to estimate for buyers how much money they can afford to spend but there are pitfalls to this method. Car salesman may talk to you about how much money you want to spend a week or a month, and then try to get you into a more expensive vehicle by saying it is just another ten dollars a week.

Banks want to loan you the most money they safely can loan you because they make money on the interest and car lots want to sell you the most expensive car. By using a car loan calculator you can play around with the figures to find what works.

Calculating which car loan you can afford at home enables you to realistically consider how much you can spend in an atmosphere without pressure. Remember a loan calculator is unbiased in its findings and helps show you how much you can save by paying off more money for car loans. This enables you to focus on which car loan is best for your individual circumstances.

Do your homework first

How loan calculators work is very easy. Take a look at our calculator for yourself at loans.com.au/calculator. A loan calculator can help a buyer figure out which repayment terms they need, or lets a buyer know if they need a particular interest rate to be able to afford the car that they want.

This information has been prepared without taking into account your individual objectives, financial situation or needs. You should, before acting on this information, consider its appropriateness to your circumstances.

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