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Car Finance Calculator
Find out all about our car finance calculator and how to use it. We’ll take you step by step through our process and what you can expect.
About Our Car Finance Calculator
Use our car finance calculator to figure out your monthly payments if you take out an HP agreement.
With CarMoney, there are no hidden fees and no obligation. When we tell you how much your repayments will be, that’s what you will pay.
Nikki the Ninja needs some very basic personal details so that they can search the market to find you the very best finance rates from the best lenders. They’ll then get you pre-approved so that all you have to do is find that perfect car.
And with the stealth of a ninja, our checks won’t leave a mark on your credit file.
The CarMoney car finance calculator lets you see an estimate of how much you’ll pay based on the amount you want to borrow and an estimate of your credit score.
These calculations are based on representative APR rates. If you want an exact APR/repayment figure then you should apply for finance using the application form a CarMoney finance ninja will get in touch with you to help guide you through the process.
Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 18.1%, monthly payment would be £172.36, with a total cost of credit of £2,273.28 and a total amount payable of £9,273.28. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender
How to use our Car Finance Calculator
A car finance calculator can be your GPS to navigate financing options and find the perfect fit for your budget. Here’s how it works:
- Enter the amount you are comfortable paying each month. The car finance calculator will estimate the loan amount you can borrow based on that number and current interest rates.
- If you have a specific car in mind, enter the estimated price. The car finance calculator will show you what your monthly payments might be for that car.
- Choose the period of time during which you intend to settle the loan – this is commonly known as the ‘loan term’
- Give an idea of your credit score, whether it is in the higher, or excellent category, or lower.
- Nikki the ninja will then fetch you an estimation of your monthly repayments!
It’s important to remember that these figures are estimates to give you a general idea. To determine your actual interest rate and monthly payment, your credit score and the specific terms offered by your lender will be factored in.
Comparing Car Finance Options
When it comes to comparing car finance, there are two main options to consider: Hire Purchase (HP) or Personal Contract Purchase (PCP). Both have their benefits, but it all depends on what you are looking for from your finance agreement, i.e. how long you want the agreement to last, whether you want to keep the car at the end of it and how much you are able to pay each month.
HP Car Finance
HP enables you to finance a car by making a down payment followed by fixed monthly repayments over a set term, usually 2-5 years. While you have used the car during this time, ownership only transfers to you after you’ve completed all the payments, along with any potential final fees.
At the end of the agreement, the car is yours and you can do what you like, such as modify or sell the car. This is the simplest form of car finance.
This is a good option for those simply looking to purchase a new car outright and wish to keep the same car for a longer period of time, i.e. longer than 3/4 years. Your monthly repayments will be slightly higher than they would be with a Personal Contract Purchase agreement, but the car is yours when the deal ends, unlike PCP which requires a final ‘balloon payment’ in order to take ownership.
PCP Car Finance
PCP allows you to drive a new car with a smaller down payment and lower monthly payments than a traditional loan. The payments you make cover the car’s depreciation during the loan term, not the total cost of the vehicle.
At the end of the contract, you have three options:
- Return the car
- Make a final payment to own it
- Use its estimated value as a down payment on a new PCP deal for another car.
However, it’s important to note that PCP comes with mileage limitations, and you won’t own the car unless you make the final balloon payment. If you don’t consider this, it could lead to higher overall costs.
Find Out More About HP
Find Out More About PCP
Apply for Car Finance
Ready to apply for car finance online? You are in the right place! We can help you get a quick car finance quote and start your journey to finding the perfect finance package to suit you and your budget. Our ninjas will search for the best rate possible from our panel of lenders and give you great options to choose from.
It is quick and easy to do, and one of our helpful ninjas will be with you to guide you through the whole process. Let us help you and apply for car finance online!
Factors to Consider
Did you know several important factors can significantly affect your monthly car loan payments? Understanding these factors can help you make smarter decisions about financing your car.
When financing a car, the key factors are:
- Loan amount
- Loan term
- Interest rate (APR)
- Deposit amount.
The loan amount and term affect your monthly payments, while the interest rate and deposit amount determine the overall cost and monthly payments. Keep these in mind when planning your car purchase.
Apply for Car Finance
Ready to apply for car finance online? You are in the right place! We can help you get a quick car finance quote and start your journey to finding the perfect finance package to suit you and your budget. Our ninjas will search for the best rate possible from our panel of lenders and give you great options to choose from.
It is quick and easy to do, and one of our helpful ninjas will be with you to guide you through the whole process. Let us help you and apply for car finance online!
Factors to Consider
Did you know several important factors can significantly affect your monthly car loan payments? Understanding these factors can help you make smarter decisions about financing your car.
When financing a car, the key factors are:
- Loan amount
- Loan term
- Interest rate (APR)
- Deposit amount.
The loan amount and term affect your monthly payments, while the interest rate and deposit amount determine the overall cost and monthly payments. Keep these in mind when planning your car purchase.
How Much Will I Pay Monthly? Price Comparison Example:
| Cash Price | £7,500 |
| Deposit | £1,500 |
| 60 monthly payments of | £134.06 |
| Final payment | £0 |
| Total cost of credit | £2,043.60 |
| Total repayment | £8,043.60 |
| Cash Price | £7,500 |
| Deposit | £1,500 |
| 60 monthly payments of | £118.43 |
| Final payment | £1,401.49 |
| Total cost of credit | £2,388.86 |
| Total repayment | £8,388.86 |
Final Considerations
Car finance is a helpful tool to get yourself behind the wheel of a car that you really want. But it is important to take everything into consideration and make sure you get into the right finance agreement to help you best. Be sure to look at all options, and read the terms and conditions of your agreement before you sign anything.
Which type of car finance should you go for? It all depends on what you want and need, if you are looking to simply buy your new car and own it at the end of the finance deal, then a Hire Purchase plan is the best fit. If you like to change your vehicle every few years and don’t mind the mileage limitations, or the fact you don’t own the car, then a Personal Contract Purchase plan is the route to take.
Remember that the rate you get is based on your credit score and the car you are looking to get finance for, and the more applications you make for finance, the more it will affect your score.
Car Finance Infographics
Our expert Ninjas have meticulously crafted these visual guides to demystify the car financing process.
This Infographics provide a comprehensive overview of our Car Finance Calculator.
Gain a clear understanding of critical financial concepts and empower yourself to make informed decisions.
Download our Infographics.
Car Finance Infographics
Our expert Ninjas have meticulously crafted these visual guides to demystify the car financing process.
This Infographics provide a comprehensive overview of our Car Finance Calculator.
Gain a clear understanding of critical financial concepts and empower yourself to make informed decisions.
Download our Infographics.
Frequently Asked Questions
Who can qualify for car finance?
Individuals 18 years old or above who have a stable income and maintain a generally good credit score are eligible for a car loan. However, there are also options available for individuals with poor credit. Furthermore, the type of car you choose will also affect your eligibility. Factors such as the car’s age, price, and model can influence your eligibility for finance.
Can I get car finance with bad credit?
Yes, it’s possible to get car finance with bad credit, but it might be more challenging and come with some drawbacks:
- Lenders consider you a higher risk and charge higher interest rates to compensate for that risk. If you need better credit, you will likely pay a higher interest rate on your car loan. However, you may be approved for less money than someone with good credit.
- Additionally, some lenders may require larger down payments or a co-signer (someone who agrees to be responsible for repaying the loan if you cannot) for borrowers with bad credit.
What is the difference between APR and interest rate?
The interest rate represents the base borrowing cost, while the APR includes additional fees. Thus, the APR provides a more accurate assessment of the total loan expense, allowing for improved comparison among offers.
What documents do I need to apply for car finance?
The documents needed for car finance may vary depending on the lender. However, the general requirements include:
- Proof of Identity: A valid driver’s license or passport.
- Proof of Address: This could be a utility bill (gas, electric, water), council tax bill, or a bank statement dated within the last few months.
- Proof of Income: You must provide pay slips for the last three months or bank statements if you are self-employed or have alternative income sources.
- Employment Details: You will need to provide your employer’s contact information and your job title.
