# Using a Calculator in Regards to Car Finance

All nice things in this world cost us money and even the essential commodities come at a price. Things are not too different when you plan to buy a car; the only thing is that since the value of this commodity is higher than daily items, you might want to go for financing the automobile or opting for a loan to buy the car of your choice.

In simple words, there are the following options with you with their long term effects (benefits or otherwise):

• If you have a lesser EMI and choose to pay for a longer period of time, the pressure on you is less and also you do not have to go overboard to pay your monthly installments. However, there is a problem with long-term finance/loans – if you compare the actual ‘worth’ of the car you purchased and when you finished paying for the car in some years, you will undoubtedly find that you paid a lot more than the MRP of the car! So you may have afforded the car, but in the end you actually paid more than the value of the car!
• If your monthly installments are more and the pay-back period is less, you still pay more than the value of the car but the difference is not as glaring as it was in the earlier case of long term finance.
• There are some investment companies which offer a 0% finance on the car you’re willing to purchase, provided you pay EMIs what they demand and within the prescribed time-period. This is often a good choice because most of the times, the EMI is not heavy on your pockets and also the actual value of the car remains when you finish paying for the car loan.

A Car Finance Calculator

This kind of a calculator is a tool in the customers’ hands and gives them the advantage to analyze their financial soundness and opt for a particular rate of interest in a defined time-period. These calculators help you determine the total amount paid vs. the value of the car at the time of purchase. Some real-time calculators also allow you to take in the depreciation figures of the automobile in a few years time from the date of purchase.

There is a form available on the internet which you have to fill with your desired ROIs and pay-back period, your borrowing amount, deposits (if any) and so on and within fraction of a second you shall be able to see the details of your payment, like:

• The EMI
• Total amount to be paid by you at the end of the finance period
• And the APR

Here, the main concern of the buyer here is that – can they actually afford the car? The best part of opting for car finance is that you might not have all the money in the world but you still can purchase the car in monthly installments. A car finance calculator helps you get in-depth statistics based on the amount you’re willing to shell out every month.