Car Loan Repayment Calculator

You will need to repay the amount borrowed, plus interest and any fees, over an agreed period of time (known as the loan term). Once you have made all your repayments, you will own the vehicle outright.

Your car is usually used as collateral for the loan. This type of loan is commonly referred to as a secured car loan. This means your lender can repossess your car and sell it if you don’t make your repayments on time or fail to pay back the loan. Some lenders offer unsecured car loans (with no collateral attached), but they often have higher interest rates and are more common if you are purchasing a used car.

Canstar’s Car Loan Repayment Calculator (above) can help you figure out your estimated repayments and the total interest payable. Your car loan repayments will depend on how much you borrow, the loan term, interest rate and any fees charged.

However, the car loan calculator does not consider fees, so it’s best to check with your individual lender to see what fees may apply.

Most banks offer secured car loans in the range of $10,000 to $100,000, according to Westpac. But the amount you will be able to borrow really depends on your own situation.

When you apply for a car loan, the lender will take a thorough look at your finances, including your transaction history to calculate how much money you have coming in and going out, to determine whether you can afford your repayments. You can get an idea of your borrowing power yourself by using our car loan repayment calculator and seeing how those results line up with your budget.

It depends on the loan term you choose and whether you make additional repayments. By taking out a loan with a longer term, you will usually have lower repayments. However, it also means you’ll typically pay more in interest in the long run, so the car will end up costing you more overall.

Here’s an example showing the difference between a 3-, 5- or 7-year car loan (excluding any fees) for the same $20,000 amount. In this example, you’d pay more than double the amount of interest by choosing a 7-year loan over a 3-year loan. You can use our car loan calculator to see the difference in cost for different terms.

Total cost of a $20,000 car loan for different loan terms

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Source: www.canstar.com.au – 16/12/2024. Based on secured car loans available for a $20,000 loan and the average interest rate of a five-year term. Assuming a P&I loan repaying monthly, with a fixed rate.

Check if you can make additional repayments on your loan through a redraw facility and whether any fees would apply. Making extra repayments can help you pay off your loan quicker and save on interest.

Yes, your credit score is a factor that lenders usually look at when deciding whether to approve your car loan and what interest rate to offer you. If you have a higher credit score, you may be offered a lower interest rate. You can check your credit score for free with Canstar or via the Canstar app.

Yes, you can refinance your car loan, which would replace an existing loan with another one under new terms. A refinance car loan is one way you may be able to get a better deal that lowers your repayments and gives you greater flexibility over your car loan. But there are some costs and risks to consider as well, such as exit fees to switch car loans or features on the refinanced loan that don’t stack up to your previous loan.

Here are some factors to consider before you apply for a car loan:

Interest rates – the car loan interest rate will have a big impact on your repayments and the overall cost of the loan. You can get either a fixed interest rate (which remains the same) or a variable interest rate (which can change due to market conditions).

Fees – common fees include application, annual, late payment, additional repayment and early repayment fees.

Repayments – you can usually make monthly, fortnightly or weekly repayments. If you don’t make your repayments on time, you may be charged a late fee and your credit score could be negatively impacted.

Loan term – if you choose a longer loan term, you’ll usually get lower repayments but you’ll pay more in total interest.

Features – check whether there are any penalties for making additional repayments or paying off your loan early. Take care with car loans that offer ‘balloon payments’, which is when you make a lump sum repayment at the end of the loan term. Under this arrangement, you can lower your repayments but you’ll usually pay more for the loan overall.

Make sure to read the lender’s documentation carefully, including the Product Disclosure Statement (PDS) and Target Market Determination (TMD), so you understand how much you will be charged in interest and fees and any other terms and conditions that may apply.

If you are taking out a car loan, some lenders will require you to have a comprehensive car insurance policy in place. Comprehensive car insurance covers you for damage to your vehicle, as well as damage you cause to other people’s property in a range of circumstances.

You can compare comprehensive car insurance policies with Canstar.