Loan Amount: $30,000
Establishment Fee: --
Total Interest Paid: --
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You’ll need to enter some details about your car loan. These are explained below:
Once you have filled in your car loan details, simply click ‘See My Repayments’ to view an estimated repayment amount. You can then select Monthly, Fortnightly, or Weekly repayments to see what your repayment amount will be at various frequencies.
The car loan calculator with balloon payment uses an amortisation calculation.
This calculation takes into account the way you will gradually repay your loan amount over time, meaning the amount of interest charged gradually decreases.
It means at the start of the loan a large proportion of your repayments are going towards paying off interest. As the loan balance decreases over time, you pay off more of the actual loan amount (known as the principal).
The car loan calculator with balloon also takes account of the balloon payment amount, which remains the same during the term of the loan as it is not repaid until the end.
You are generally still charged interest on the full loan amount (including the balloon amount) throughout the life of the loan.
If you decide on a car loan with a balloon payment, the balloon payment amount will be set by your lender. Although you may be able to negotiate on the level of the payment.
The balloon payment is usually calculated based on what the lender estimates the remaining (or residual) value of the vehicle will be at the end of the loan term.
It will take into account vehicle depreciation. Or in other words the level at which it will fall in value due to wear and tear and other factors.
The balloon payment level can either be calculated as a dollar amount or it may be a standard percentage of the car's value/loan amount set by the lender. It's usually somewhere in the region of 30-40% of the vehicle's value.
It's usually thousands of dollars, so many borrowers opt to refinance the balloon amount at the end of the finance term.
|CAR LOAN AMOUNT||5% INTEREST||7.5% INTEREST||10% INTEREST|
If you need help working out repayments and costs on other types of finance, we have a calculator for that.