Close Brothers Motor Finance Calculator (Wesbank)

EMI Calculation Formula:

\[ EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (EMI):

Total Payment:

Total Interest:

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1. What is the Close Brothers Motor Finance Calculator?

The Close Brothers Motor Finance Calculator helps you estimate your monthly payments (EMI) when financing a vehicle through Wesbank. It uses the standard EMI formula to calculate your repayment amount based on loan amount, interest rate, and term.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

\[ EMI = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (£)
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment that pays off the loan (principal + interest) over the specified term.

3. Understanding Your Motor Finance

Details: Your monthly payment depends on three key factors: the amount borrowed, the interest rate (which may vary based on creditworthiness), and the repayment period. Longer terms reduce monthly payments but increase total interest paid.

4. Using the Calculator

Tips: Enter the loan amount in £, annual interest rate as a percentage (e.g., 7.5 for 7.5%), and loan term in months (typically 12-84 months for vehicle finance). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for Close Brothers motor finance?
A: Rates vary based on credit profile, vehicle type, and loan term, typically ranging from 5% to 20% APR.

Q2: Are there any additional fees not included in this calculation?
A: This calculator shows principal and interest only. There may be additional fees like arrangement fees or optional insurance products.

Q3: Can I pay off my loan early?
A: Most agreements allow early repayment, but there may be an early settlement fee. Check your specific terms.

Q4: How does the loan term affect my payments?
A: Longer terms mean lower monthly payments but higher total interest. Shorter terms mean higher payments but less interest overall.

Q5: Is this calculation accurate for all types of vehicle finance?
A: This works for standard hire purchase agreements. PCP agreements would need additional calculations for the balloon payment.