Car Loan Calculator

Dealers love balloons because the lower repayment makes a more expensive car feel "affordable". The trade-off:

• Balloon pros: lower weekly/monthly repayment; matches business cash-flow if it's a work car.
• Balloon cons: the residual still owing at end is often more than the car is worth (negative equity), forcing a refinance or top-up to keep driving. Total interest paid is higher too.

The "P&I would be" figure on the result panel shows what your repayment looks like with no balloon — same loan, same term. Compare. If the difference is small, take P&I and own the car at the end.

The 20/4/10 rule

A widely-used affordability heuristic for car buying:

• 20% deposit (or trade-in) at minimum.
• 4 years max loan term.
• 10% of gross income for total transport costs.

Hit the green light on the cost panel above and you're inside the 20/4/10 envelope.

FAQ

Should I get my own loan or use dealer finance?

Get pre-approval from your bank or a broker BEFORE walking onto the lot. Then negotiate price first, finance second. Dealer finance is often higher rate; sometimes worse terms hidden in the fine print.

What about novated lease?

A novated lease can be tax-effective if you're a salaried employee with predictable use — pre-tax salary funds the lease + running costs. Get specific advice from your accountant.

Are EVs cheaper to run?

Yes for fuel + servicing (no oil, fewer moving parts). Insurance is usually higher (more expensive parts). Use real-world numbers in the panel above to compare specific models.