Car Loan Calculator
We don’t offer loans directly, but we’re here to guide you. Use our calculator to estimate your monthly payments and find a car that perfectly fits your budget.
Customize Your Loan
Estimated Monthly Payment
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*This calculator provides an estimate only. Actual rates and payments may vary based on the financial institution, extra fees, and your credit score.
What is a Car Loan?
A car loan is a type of financing where you borrow money from a bank, credit union, or financial institution to buy a car. You then repay the loan over time, usually in monthly installments, with interest.
Most car loans fall into two main categories:
Secured Loans
These loans require the car you’re buying to be used as collateral. If you default on your payments, the lender can repossess the vehicle. They usually offer lower interest rates.
Unsecured Loans
These loans don’t require collateral. However, because the lender takes on more risk, the interest rates are generally higher compared to secured loans.
Things to Consider
While our calculator gives you a great estimate, applying for a car loan requires careful thought. Keep these factors in mind:
Your Budget
Before applying, ensure you know your financial situation. Factor in total monthly expenses (rent, fuel, insurance). Don’t overstretch yourself.
Loan Terms
A longer term means lower monthly payments but more interest paid overall. A shorter term saves interest but requires higher monthly installments.
Interest Rates
Rates are a massive factor in the final cost. They vary based on credit score, the lender, and the car type. Always shop around to compare.
Credit Score
Lenders look at your credit history (like CRB status in Kenya). A good score means lower rates. Consider improving it before applying.
Down Payment (Deposit)
While some lenders offer zero down payment, it’s always best to put down as much as you can. A larger deposit drastically reduces the amount you borrow, directly lowering both your monthly installments and the total interest paid to the bank.
How to Get the Best Car Loan
Check Your Credit Report
Ensure there are no errors on your profile and get an idea of your creditworthiness before stepping into a bank.
Shop Around for Rates
Don’t settle for the first lender you find. Compare rates and loan terms from multiple banks, credit unions, and online lenders.
Consider Pre-Approval
Getting pre-approved gives you a concrete idea of your borrowing capacity and shows sellers you’re a serious buyer.
Understand All Fees
Ensure you ask about origination fees, late payment penalties, early repayment fees, and required comprehensive insurance.
Ready to find your dream car?
Now that you have your budget figured out, explore thousands of verified cars listed right now on Cheki.