Home > Use A Car Loans Calculator To Estimate Your Repayments

Use A Car Loans Calculator To Estimate Your Repayments

March 4, 2020 9 minute read
Use A Car Loans Calculator To Estimate Your Repayments

Fast and easy car loans

Ready to hit the road again? Applying for a car loan comes with many questions: What lender should I go with? Who long should I get a loan for? How much can I afford to borrow? What’s a car loans calculator?

Let us tell you why Jacaranda may be your lender of choice for fast and easy car loans. Our application is 100% online and will only take you a few minutes. No boring paperwork, no hidden fees. We know time is ticking when you can’t wait to get moving. You may receive your outcome in only 60 minutes if you apply during our business hours.

While you should always think twice before taking on debt, a car loan calculator can help you work out your repayment.

How a car loans calculator can help

If you have been thinking about getting a car loan for a while you may have wondered about repayments already. Working out repayment terms and rates on your own can be difficult, especially if maths has never been your strong suit (don’t worry you’re not alone in this boat). That’s where a car loans calculator can come in handy. You can find our car loans calculator at the top of this page. While it won’t help you work out how much you can afford, it can help you understand how different payment terms affect your interest rate.

A quick word on interest rates

For any loan you get, you have to pay interest. Interest is a certain percentage of your loan amount that you pay as a fee when borrowing money. It is normally expressed as an annual percentage and will be paid with your loan amount. Your credit rating affects how much interest you may have to pay. Some lenders can offer good deals to people with a high credit score. However, even if you have a bad credit score, there are lenders (like us!) that are capable of giving you a car loan. It all comes down to the assessment of your application!

How do you calculate loan repayments in the first place?

How much you have to repay depends on the amount of money you are borrowing, how long you are borrowing it for and what interest rate your lender can offer. If you want to work out your repayments, you have a few options. While we would recommend you use a car loans calculator, you can also do the maths yourself. An Excel spreadsheet can help you work out your monthly payments with the following formula:

Number of Periodic Payments (n) = Payments per year x number of years
Periodic Interest Rate (r) = Annual rate / number of payment periods
Discount Factor (D) = {[(1 + r) ^n] – 1} / [r(1 + r)^n]
Loan amount (A)

Loan Payment = Amount / Discount Factor, or P = A / D
However, we would still recommend you use a car loans payment calculator too, as this can be pretty tricky, especially if you haven’t done maths since school. Your own calculations may be prone to mistakes and it is harder to spread out interest payments evenly.

Before taking a car loan:

There are multiple factors you should think about before taking on a personal loan. Unlike small personal loans, repayment periods for car loans are a much longer commitment and you want to assess your financial situation thoroughly before you decide how much you can and should afford.

Affordability

You may have your dream car in mind already. This can be a good indication of how much you may want to borrow. However, you should always consider how much you can afford. It is recommended that you only use up to 10% of your take-home income to cover the costs for your loan repayments. What’s most suitable for you depends on your lifestyle, other financial commitments such as mortgages, personal loan repayments etc. If you think about affordability, you should also consider that you may be able to save money on interest if you borrow money for a shorter amount of time with a higher repayment rate. A car loans calculator can help you work out which repayment rates work best for your personal budget.

Your credit score

Do you know your personal credit score? It is advisable to check where you’re at before you apply for a car loan. Your credit score may affect the interest rate you are offered and in some cases, lenders won’t be able to offer you a loan at all if your credit score doesn’t meet their requirements.

Loan terms

The loan term can depend on a few different factors. First of all, if you decide to go for a shorter loan time with a higher payment rate, you won’t pay as much interest (because you borrow the money for a shorter amount of time). We offer payment terms between 1 and 5 years, so you should consider how much you can pay comfortably over the chosen amount of time.

Maintenance costs

While owning a car is incredibly fun, freeing and convenient you should consider that maintaining a car can be expensive. Car registration, car insurance, and a car parking spot are ongoing expenses that come with owning a car. Unexpected repair costs can also affect your budget. If you feel financial pressure from any of those expenses, a small personal loan may be able to bridge the gap.

Who can get a car loan?

It is our mission to make car loans accessible to everyone. However, there are a few requirements that have to meet. These are:

  • Be 18 years or older;
  • Have an Australian driver’s license;
  • Be an Australian citizen or permanent resident;
  • Have an active mobile number and email address;
  • Have a consistent income for the past 90 days into a personal bank account.

If you tick all the boxes, you are welcome to apply for a car loan with Jacaranda. We do offer car loans for pensioners, car loans for students, and car loans for people on Centrelink.

How do I apply for a car loan?

Our application process is so fast and easy, it only takes three simple steps. Most people submit their application within just a few minutes. That’s when our team starts working hard assessing your application. We know time is precious and you may want to see your outcome as quickly as possible. It may only take 60 minutes if you apply within our business hours. And here’s how to apply:

Step one: Fill in the application form.

Our application form is 100% online, no offline paperwork required. Simply fill in your personal data and click submit. If you want to play around with payment terms upfront, you can use our car loans calculator at the top of the page.

Step two: We assess your application.

That’s where we jump in. While you sit back and relax, we thoroughly check your financial situation to ensure a car loan is affordable and suitable for you. For that purpose, we use safe banking technology to access a read-only version of your bank statements. We will reach contact you directly if we need to clear up anything on your application. Otherwise, you will hear from us with the outcome.

Step three: Receive your funds.

If you’re approved for a loan, congratulations! Welcome to the family. We will send you a digital loan contract to check if you are happy with the offer. We recommend you thoroughly read of this agreement so you don’t skip any important details regarding fees and charges for late or missed payments. Once that is signed, your funds will be transferred to your nominated bank account as soon as possible. If everything goes smoothly that may even be the same day.

The documents you need to provide

As we said, we won’t make you do any boring paperwork. Our application is 100% online. However, we do need some information and you can speed up your application by having these handy: 

Loan amount and loan term You should know how much money you want to borrow and for how long. If you are unsure, our car loans calculator can make this decision easier. By playing around with loan terms, you can work out how longer or shorter repayment periods may affect your payment. 
Personal information We need to know a few details about your person such as date of birth, address, and so on. Additionally, we also need your email address and mobile phone number to either contact you for further questions or to let you know if your loan got approved.

Responsible lending 

At Jacaranda, we believe in responsible lending practices. While some lenders may let you borrow as much money as you want, we want to make sure that a car loan is suitable for your situation and affordable for your budget. We won’t lend you money if we think you may struggle with the repayments. 

What happens with my bank account?

We will ask you to provide us with access to your banking account. But you don’t have to worry, we take data security very seriously. We access a read-only version of your bank statements with the latest in safe banking software, no one will be able to access your personal account at any time. 

And for repayments? You won’t have to worry about sending us the money ever so often. With your permission, the repayment amount will be automatically debited from your account at the nominated date. Once set up, you can forget about it, as long as there is enough money on the account, there shouldn’t be any issues. 

How long does it take to get a car loan?

That depends on each individual case. But we can be pretty fast: We do offer same-day cash loans. Most people manage to submit their application within just a few minutes. Our assessment may take as little as 60 minutes if you apply during our business hours. If we don’t need additional documents, you may be set to purchase your car in just a few hours. 

Do you still have questions?

If you want to know repayment rates, you can use the car loans calculator on top of this page. However, if you still have any further questions regarding loan repayments or generally how it works, we would recommend you have a look at our FAQ page. Most questions are likely to be answered already. If you prefer to talk in person, our friendly customer service team is very happy to provide you with answers during our business hours. Get in touch through our contact page

Our business hours are: 

Monday to Thursday: 8 am – 5 pm
Friday: 8 am – 4 pm
Saturday: 8 am – 12 pm

How Jacaranda can help

Let us introduce ourselves: We are Jacaranda Finance, your friendly local lender more Aussies are turning to for car loans and personal loans alike. If you need extra cash to finance the car of your dreams or to pay for any additional costs we may be able to help. 

We are looking forward to meeting you. If you don’t have any further questions, what are you waiting for? It could be a few clicks and a few hours between you and your future car. Apply online today and we could get you behind the wheel in no time! 

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Reviews current as of June, 2021.

Our low rates

Our low rates

💰 Personal Loans starting from 8.69% (12.05% p.a. Comparison Rate)

🚗 Car Loans starting from 5.29% (5.84% p.a. Comparison Rate).

We never charge early repayment or exit fees.

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