How does car finance interest work?

By CarMoney March 13, 2017
Nikki and the Ninjas - committed to cutting the cost of your car finance

You want to buy a car. So you apply to a finance company for a loan. Assuming you’re creditworthy, they then give you the money to make the purchase. Now the car’s owner, you have to repay the loan a little at a time – plus additional interest – each month. Usually over a number of years. The interest is a percentage of the value of the original loan. And it’s the price of getting the finance company to give you the money. Interest rates vary greatly. It helps to have someone working on your behalf to find you a great deal.

Here’s an example:

  • Amount you want to borrow: £4,500
  • Deposit: £0.00
  • Loan period: 60 months
  • Rate of interest: 14.9% APR
  • Monthly repayment: £104.63
  • Total amount you repay: £6,278.80

Now, what can we do for you?
CarMoney offers fiercely competitive rates for car loans. As well as great HP and PCP
deals. So that’s pretty much all the bases covered. Apply for finance and see for yourself here.

If it’s vans you’re after, check out our Van Finance Calculator 

CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 18.1% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. 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.