Car finance calculator

How to use our car loan calculator

Before you start, it’s worth knowing that this calculator will show you the results for a personal loan, but it won’t help with costs for Personal Contract Purchase (PCP) or hire purchase (HP). But, if you’re considering these types of car finance options, it will give you a handy figure to compare - so you can see if you’d be better off with a straightforward loan. 

You can work out how much you can borrow, to pay for your new set of wheels, based on what you can afford each month. Or, if you have an idea of how much your new car will cost, you can use the calculator to see how much your monthly payments would be – whether you’re buying a new or a used car.  

To see how much your car loan monthly repayments will be: 

1. Make sure you’re on the ‘What are my repayments?’ tab. 
2. Fill in how much you want to borrow – you can either enter it into the box or use the slider. 
3. Decide how long you want to take to repay – just select the number of years. 
4. The average APR (annual percentage rate) is shown, but ideally you should adjust this to whether you have a good or bad credit rating to get a more accurate result. If you’ve got a poor credit score, you’re more likely to have to pay a higher interest rate. 
5. Check your result – you’ll be able to see how much your monthly repayments will be and how much you’ll pay overall in interest. 
6. If you want to, you can then see what impact it has if, for example, you pay back your loan faster or over a longer period. You can also see how much more your payments will be if you have to pay a higher interest rate. 

When you’re working out how long you want to take to repay, don’t forget to think about how long you’re likely to keep the car for and –particularly if it’s second hand – how much life it’s got left in it. You don’t want to still be repaying a loan for a car that’s on the scrap heap. 

To see how much you can borrow: 

1. Select the ‘What can I borrow?’ tab. 
2. Enter the amount you can afford to repay every month or use the slider. 
3. Select the number of years you want to take to pay back the car loan. 
4. The average APR is shown but you can change this if you know your credit score or whether you have a good or bad credit rating. If you’ve got a poor credit score, you’ll typically have to pay a higher APR (more interest). 
5. Check your result – you’ll be able to see what you could borrow based on the figures given, plus what you’re likely to pay in total interest. 
6. If you want to, you can try changing some of the variables to see what happens to the totals if, for example, you paid a little more or less every month. 

In both cases, you can then see how likely you are to be accepted for this size of loan. Simply select the ‘Check your eligibility’ button, enter a few personal details and you’ll be able to see loans that you’re likely to be accepted for. This will also show you the likely APR (the interest) you’ll have to pay. Don’t worry, checking like this won’t have any impact on your credit score. 

If you’re happy with one of the loans you’re likely to be eligible for, you can then apply for one. The application will then most likely have an impact on your credit score. 

You should think carefully about whether you can afford to pay back a loan, regularly and on time for the length of the loan, before you take one out. 

Compare car finance

Typically, buying a car is one of the most expensive purchases we make, along with buying a home. If you’re buying a new car on credit, it can add thousands to the total cost you’ll end up paying. Making sure you get a good deal on your finance is important, as it can save you a lot. 

Car finance comes in a variety of forms and you’ll need to choose the one that’s right for you – as with some types you could end up not owning the car.  Options include: 

• Personal loans an unsecured loan where you pay back monthly instalments over a fixed period.  
• Hire purchase – you put down a deposit and pay back monthly over time. Once all repayments are made, you’ll then have to pay a final ‘option to purchase’ fee to buy the car outright – check how much this is before you sign the deal. The loan is secured against the car, so, if you don’t keep up with repayments, your vehicle may be repossessed. 
• Personal Contract Purchase is a type of loan that allows you to buy a car without paying the full cost upfront. It’s based on the car’s depreciation (how much it loses value) rather than its total value. At the end of the agreement you can hand back the car, part-exchange in a new deal or buy the vehicle outright – but here the final payment can be quite large and can depend on the mileage you’ve done too. 
• Personal Contract Hire is a way of leasing a car rather than buying it. You pay a deposit and monthly instalments, which may be lower than some other finance agreements, but you never own the car. See if this is a good option for you in our guide to whether it’s better to lease or buy. 

All of these offer differing advantages and disadvantages, so you’ll need to weigh up what’s best for you. We can help you see how much you’re likely to pay for a car loan, and this will enable you to see how the deals you’re being offered by a car dealer or manufacturer compare with a straightforward loan.