Are you in the market for a new set of wheels and need financing? InfoChoice’s Car Loan Repayment Calculator can estimate your repayments and see how much interest you could pay over the term of the loan.

 




How does the car loan repayment calculator work?

The InfoChoice Car Loan Repayment Calculator helps you calculate your potential car loan repayments and the total interest payable. You can use our car loan repayment calculator to help you work out what you can, and maybe what you can't (bye bye Range Rover), afford when the time comes to purchase your vehicle.

Your car loan repayments will depend on the:

  • Type of repayments - Principal and interest repayments versus interest only repayments

  • Repayment frequency - Monthly loan repayments versus fortnightly versus weekly

  • Car loan type - Variable, fixed, or introductory rate

  • Loan term - You can set your car loan term and compare periods from one to seven years

  • Loan amount - Enter the amount you wish to borrow to compare repayments and interest charged

What it doesn’t factor in

Keep in mind the InfoChoice Car Loan Repayment Calculator does not take a couple of things into account:

Fees and comparison rate

Because of this it’s also worthwhile looking at the comparison rate. The comparison rate on a car loan takes into account the fees relating to a loan and expresses it in interest rate form; a high comparison rate usually indicates high fees.

Balloon payment

A balloon payment is an optional feature where you can pay a lump sum of the car’s value at the end of the loan. Anywhere from 10% to 50% of the value is common. So if you had a $50,000 car this would be anywhere from $5,000 to $25,000.

Balloon payments can reduce your regular repayments however this comes with one major caveat: You are still paying interest on the full amount! So because your repayment is lower, less actually goes towards paying off the full amount. On a five-year car loan with a 6% interest rate borrowing $30,000 and a 30% balloon, this would result in around $1,260 extra in interest paid.

How can I pay off my car loan early?

Paying off your car loan early can save you money on interest and provide financial flexibility.

There are a few options to consider when it comes to paying off your car loan early:

  • Opt for a car loan that allows for additional repayments - Whether it be a lump sum payment such as your tax refund or a work bonus, consider putting this extra cash towards your car loan repayments. You could also chip away at the principal by making small extra repayments every month.

  • Round up your repayments - Round-up your repayments to the nearest $5, $10, or even the nearest $50. Any amount will help.

  • Make fortnightly, not monthly payments: There are 26 fortnights in a year (or 13, four-week blocks) versus only 12 months. By making this simple switch you could save in interest in the long run.

Before you go ahead and make any extra repayments, confirm with your lender if there are any fees applicable as sometimes this could equal or outstrip the savings made by paying off the car loan early.

Car loan FAQs

Can your credit history affect your car loan interest rate?

Yes, your credit score can have an impact on your likelihood of getting approved for a loan and the interest rate offered.

For example, a borrower with a low credit score is generally seen as higher risk for the lender, and as a result, will be offered a higher interest rate (or possibly even declined). Whereas if you have a higher credit score, you’re deemed as a more reliable borrower and thus may be offered a lower interest rate.

What are the additional costs of car ownership?

On top of your car loan repayments, you will also need to pay for some additional costs that come with car ownership. These can include:

  • Stamp duty

  • Fuel

  • Registration & CTP (green slip)

  • Insurance and roadside assistance

  • Fuel

  • License renewal

  • Tyres, servicing and maintenance

  • Fuel

  • Tolls

How much deposit do you need for a car loan?

Most car loan lenders will allow you to borrow up to 100% of the car's value, meaning you may not require any deposit. However, if you want to lower your repayments and therefore the total amount you borrow, a deposit of some kind (say 10%) may be beneficial.