An online emi calculator helps a person to judge the best offer by analyzing the EMI, the term period, the final amount which will actually go out of his or her pocket among several other criteria.
1. Clarity - Calculate the exact monthly instalment using the interest rate being charged by the finance company to remove any confusion and ambiguity. Both the estimated EMI provided by the seller and the calculated EMI of the buyer can be compared to find out any hidden costs or charges that the buyer might not have been told about.
2. Time Saver - often if people wants to renegotiate, an appointment will be needed with the dealer or loan company or a buyer may himself or herself may also be asked to visit. All this will obviously consume time. Using an online tool means analysing several options from the comforts of people's home or office, making it easy to even negotiate over phone or e-mail and get the best deal.
3. Stay within Budget Restrictions -the overall amount may work out to be cheaper with lesser number of instalments, but the buyer needs to also be fully aware of his or her budget limitations.
If an EMI is not affordable on a monthly basis then it can prove to be more expensive for the buyer from a short-term perspective. Increasing the number of payments will result in a reduction of the monthly amount. These amounts can be very well calculated by the purchaser so that best value for money is achieved and monthly budget limits are not violated.
4. Understanding various interest rates- perhaps the most confusing thing about car loans can be the different interest rates being offered by various companies. A buyer who does not have much knowledge about finance will be thoroughly confused and may assume the lowest interest rate to be the best deal.