Understanding the tools of online financing companies

If you're a finance or loan novice, securing an online loan or finance for your vehicle purchase may be a bit daunting. The online world we inhabit today has cut out the face to face negotiations and dealings with finance brokers or bankers, making the process more individualised and easier to carry out from the comfort of your living room and on your own time. The

individual and unaided nature of the loan and finance process, however, places a bigger burden on the customer to be a more informed and clued-in car finance customer.

There are a number of tools on online finance companies websites to help customers understand their loan and what they are signing up for before agreeing to take out car finance.

Potential borrowers should utilise these tools when planning or organising their car finance.


Car finance calculator: Most online finance brokers offer car finance calculators which can be used by customers to help work out how much they will be repaying per month, based

on the amount of the loan, the time period in which it will be paid back in and the interest rate. By filling in this information, customers will be given an instant estimate of the amount they will need to pay each month in loan repayments. By using this tool, potential loan or finance customers can determine whether they will be able to meet the monthly repayments of the

loan they would like, and if not, they can tweak it to make it manageable and suited to their budget. Bear in mind that loan calculators give estimated figures only and usually don't include

the financier's charges and fees.


Chattel mortgage calculator: The chattel mortgage calculator works in exactly the same way as the car finance calculator, but calculates the monthly repayment based on the different terms attached to chattel mortgages as opposed to general loans. Chattel mortgages are used for

businesses, and under a chattel mortgage, the purchaser borrows money from the lender to buy a new vehicle, and the lender then secures the loan with a mortgage on that vehicle. There is no capital outlay by the business, but they still own the vehicle. The chattel mortgage calculator works out for customers the monthly mortgage repayments they will have to make to the lender.




Instant online quotes: When visiting the homepages of online car financiers, most will offer an instant car finance online quote. Based on the amount of money you would like, the vehicle you wish to purchase and some brief details of your credit history, you'll get an instant quote on the amount you are eligible to be approved for and the monthly repayments you'll be required to meet.


By using the tools made available by car finance companies, customers can be informed and prepared borrowers who are able to meet monthly repayments and ensure that they are getting the best car finance deal available.