On average, every six to seven years, a German needs a new vehicle or makes the decision that it is now time to buy a new vehicle. This is usually done using a so-called car loan. This means that the new car is purchased through a loan, so you first have to calculate the different models for a car loan.
Calculate a car loan: What is a car loan?
Before you can look at how to calculate a car loan, it is worth taking a closer look at what a car loan is, because the name already suggests that this is not a normal loan but a special loan. The characteristic of the particularity is its purpose. The credit may actually only be spent on what the purpose already says and not for more. With a car loan you are actually obliged to actually buy a vehicle or to make additional important expenses relating to the vehicle. This includes insurance, for example.
Calculate a car loan: what can you calculate?
The general rule of the car loan is that you have to carry out the normal calculations that are necessary for every loan: What do you actually need (needs assessment)? In what period can you or would you like to repay this? What installments can you shoulder each month? In addition, it is important to pay attention to interest, fees or other charges, which can be included in almost all of the effective annual interest rate in his calculations. However, there is a special feature of car loans: balloon financing: this means that you only pay off half of the loan and leave the rest for the final installment. Follow-up financing can be obtained for these. Anyone who has this financing model has a completely different calculation basis.
Calculate a car loan: the classic means of help
However, the internet does not leave you alone in trying to charge a car loan. The network provides numerous loan calculators, which, for example, already relieve you of the difficult compound interest calculation. A loan calculator can either be used to directly divide the amount of the loan that you have selected on the bank’s side in different models according to different repayment methods, or you can use a general loan calculator to check different calculation methods and find out which one Loan is the best.