Using an online auto loan calculator will considerably ease the process of taking the best loan for your dream car.
Each of us wishes to own and drive around in the best car in the market. But one’s dream car often comes at a high price, and one may not have the ready finances to pay for it upfront. This means that most of us have to take funding from external sources such as banks and financial institutions to help pay for our new car.
The UAE has the distinction of hosting almost every international car brand, and residents of the country are spoilt for choice when deciding to buy a new car. However, both residents and expats often take car loans to finance the car purchase instead of trying to make the entire payment upfront. But deciding to take a car loan is easy; the tough part is deciding which the best available loan is. Every lending institution claims to offer the best vehicle loan in the UAE, and on the face of it, every loan product seems attractive. How does one decide to take one car loan over another?
The factors determining the loan decision are the principal amount the lending institution will offer, and the rate of interest it charges on the same. First, the applicant must cobble together at least 20% of the car’s value as down payment from his or her own finances. The remainder can be taken from the lending institution.
When conducting your research about the best car loans in the UAE, you will come across a handy tool known as the ‘auto loan calculator’. This is a computing tool that provides results in real time, thus helping one to make the loan decision faster. Customers can use the online calculator to compute the principal amount basis the rate of interest offered and preferred tenure. If the EMI is found to be higher than what the customer can realistically afford to pay every month, he or she can adjust all parameters to arrive at the desired figures.
The auto loan calculator helps one decide on the best loan product and to check one’s eligibility for it. One simply needs to enter details such as monthly income, the type of loan one needs, loan amount and desired tenure. The calculator then computes these figures and arrives at the principal amount at a certain rate of interest.
However, customers must know that this calculation in merely indicative in nature and that the results are not final. To know the latest rate of interest or any change in the lending institution’s loan approval procedure, it is wiser to talk to the institution directly.