How to calculate your monthly finance cost for car finance
If you are thinking of buying a car or a new vehicle, you are probably going to need to factor in financing costs.
There are two main sources of financing costs: the amount of your loan and the amount you pay out of pocket.
You should not be surprised if the cost of your car or new vehicle loan goes up after the initial financing cost has been calculated.
What’s important is to calculate the amount that will be used to finance your vehicle loan before the final price of the vehicle is calculated.
How to Calculate your monthly car finance cost: A monthly car loan from an auto loan company can cost you between Rs 10 lakh and Rs 15 lakh depending on the company, how long the loan lasts and the type of loan.
You will be required to pay the monthly loan interest (usually 1 per cent per annum) to cover the costs of the car loan and any expenses incurred on the car.
You may have to pay taxes and insurance, but the cost will be paid in full if the vehicle has to be sold.
The total cost of a monthly car financing is going to depend on the type and amount of car you want to buy and how much you pay for it.
This is what the monthly car insurance costs will be in the next section.
You can find out the actual cost of car insurance by checking the latest data on auto insurance rates on Insurance Regulatory Authority of India (IRIA) website.
Monthly car loan repayment calculator: A car loan can be repaid in a number of ways depending on how long you are paying for it and the number of years you have paid.
You need to pay a minimum amount per month for the loan and if you have a monthly payment rate of 10 per cent, the minimum amount will be Rs 50,000 per month.
For example, if you pay Rs 50 lakh for a car loan, the interest rate is Rs 3 per cent for a year, and the minimum loan amount is Rs 30,000.
The amount that you have to repay per month is the monthly cost of the loan.
This can be calculated using the car finance calculator below.
Note that if you choose a monthly loan payment rate less than 10 per per cent you will be able to use the calculator to find out how much the monthly payment will be.
For the latest car loan rates on car insurance rates visit IRIA.
Car loan interest rates: Rates vary by car model and the loan term, so you need to check the latest rates available.
If you decide to buy a new car or to replace your current vehicle, it is important to pay off the car at the time you are going to sell it.
There is no guarantee that the new car will have the same performance or reliability as the previous one.
If the car is too good to be true, then you may need to get a new one.
There may be a cost of maintenance that you should pay, or if you are using a new or used car, there may be extra costs to keep it in good condition.
It is important that you pay the maintenance costs upfront and not pay off later if you do not need to.
If your car is getting too expensive to maintain, then the loan may be worth a try if you can save a few hundred rupees.
You would need to put up a deposit on the new vehicle before you can pay off your car loan.
For this, you can contact a car insurance broker to find an auto insurance agent that can do the work for you.
You might also be interested in the following car loan comparison calculator that can help you compare car loans.
How much will a car cost you: A new car may cost you around Rs 40 lakh, while an old car may be around Rs 70 lakh.
This might seem like a lot, but car financing costs can vary widely.
If a car is more expensive than you are used to paying, it might mean you will have to start saving more before you have enough money to pay it off.
The monthly payment can also affect the interest rates that you are charged.
The interest rate you are paid for the monthly financing may be much lower than the rates that are available on the websites of your preferred car loan company.
To find out if the rates are suitable for you, we have calculated the monthly rate for a typical new car loan in the last few months.
Monthly loan interest rate calculator: The monthly rate that you would pay on a car financing loan depends on the loan amount and the length of the term of the original loan.
If it is a new loan, you would be required pay the full amount upfront and you would have to keep the loan in good shape.
If this is the first time you have financed your car, you might not be able be bothered with the upfront costs.
If, however, you have already financed your vehicle, then your interest rate will be lower and you might have to consider whether it is worth the upfront payment to repay the loan early.
How you pay car finance