Buying a new truck requires a lot of decisions and in some cases, planning your business finances. Using a Truck Loan Calculator can greatly assist with many aspects of the planning and the decision-making by allowing you to calculate rough estimate of repayments instantly, easily and online.
A Truck Loan Calculator is an online device or function, which can be accessed on the websites of most banks, finance brokers, lenders, truck dealers and manufacturers that offer truck financing. It’s simple to use but to get the most effective value from the device, requires fully appreciating its strengths and its weaknesses.
How to Use a Truck Loan Calculator Effectively
Most online calculators follow the same basic format for online forms. Fields are displayed where you enter data.
- Total Loan Amount: the first field is usually the amount you want to borrow. You may choose to include rego, dealer stamps, delivery charges on new trucks and other expenses in the loan amount.
- Loan Term: truck loans are available up to 7 years/84 months, dependent on individual lenders and the vehicle. In this field, enter the loan term that would best suit you. Being mindful that the lender may require a different loan term.
- Interest Rate: enter the interest rate for truck finance being advertised by that lender or from another source.
- Residual/Balloon: if you choose to include a balloon or residual, enter the percentage or fixed amount in that field. It is an option only.
- Check you’ve completed all fields and click on the CALCULATE button.
- An amount will be displayed in the result field. This is the estimated monthly loan repayment based on the values you entered.
To see how another truck price compares or to get a higher or lower repayment, enter different loan amounts and loan terms.
Important Conditions to Note
- The functionality of an online calculator is generic. It does not allow for the fees and charges that a lender will apply to your loan. These will be additional.
- The repayment calculated is an estimate only, a rough ballpark.
- Using a calculator is not a loan application and the result calculated is not a quote, an offer of a loan or any indication that your truck loan is approved.
- Your finance broker may achieve a better interest rate for your truck loan and your repayment may vary from the one shown.
- The lender may apply or ease conditions and hence costs/interest rates for your specific application which may affect the repayment.
- Read the disclaimer and terms and conditions for the calculator you are using so you are fully aware of its use, functionality and purpose.
Using a truck loan calculator is a great tool to have your kit when purchasing a truck. Use it on your smart phone or mobile device when you’re pulled into a truck stop, waiting for your load at the warehouse or when you in negotiations with the seller.