Getting a loan is the best way to buy your dream used car without putting any stress on your finances. You can get up to 90% of the vehicle’s value as a loan, depending on factors such as the age of the vehicle, your income, credit score, etc. When you apply a used car loan, it requires you to repay through equated monthly instalments (EMIs).
Your EMI amount is an integral part of your loan. It has a direct impact on your monthly budget. Therefore, it would be wise to assess your finances and then choose an EMI that you can afford to pay every month. You can use a used car EMI calculator to determine your affordability based on the principal loan amount, interest rate, and loan tenure.
Features of a second-hand car finance calculator
A used car EMI calculator comes with a host of features and benefits that you can avail of while applying for a used car loan.
- Quick and simple
The used car EMI calculator is a simple financial tool available online. Any layman can use it to determine their EMI amount. The best thing about it is that it produces results within just seconds and provides an overview of loan options with different lenders in the loan market. You will need to enter the loan amount, interest rate, and loan tenure. The calculator will give you an accurate result instantly.
- Customized calculation
The second-hand car finance calculator is a free tool available online, which can be used multiple times to get a suitable EMI. So, if you are not satisfied with the result, you can always run additional computations. For instance, if the EMI amount is higher than you can afford to pay every month, you can alter changes in your calculator until you reach a suitable figure. You will need to enter the loan amount, interest rate, and loan tenure to get your EMI amount. Try to change the values of the loan amount and loan tenure to reach your preferred EMI option before choosing one.
- Accuracy in calculation
Unlike the manual calculation of EMI, a used car EMI calculator can help you produce accurate results based on the principal amount, interest rate, and loan tenure. But, if you have your doubts regarding the result displayed on your calculator, you can always recalculate manually to ensure accuracy. Calculating your EMI through a used car EMI calculator significantly saves time and effort invested in manual calculations.
- Compare lenders
At times, getting an affordable second hand car loan interest rate becomes a daunting task, as you extensively research similar financial products in the loan market. Using your used car EMI calculator enables you to compare your EMI amount with different lenders. This way, you can choose a lender that offers the lowest EMI while securing second-hand car finance.
- Have control over your finances
The benefit of using your bike loan calculator is that it enables you to have better control over your finances. You have a clear idea of your monthly budget and the EMI amount you will have to pay towards your debt every month. If you notice that your monthly expenses are shooting upward, you can reduce them as you are well aware of your EMI commitments.
Final word
Before applying for second-hand car finance, it is imperative to assess your needs and choose a loan amount that you can afford to repay within the stipulated EMIs.
