Car Finance Calculator

Our car loan calculator is an easy-to-use tool that estimates how much you could borrow to pay for your next car based on the amount you can afford to put towards your monthly repayments.

If you already know approximately how much your next car will cost, you can also use the loan calculator to get a rough idea of what your monthly payments might be.

All you need to do is select the credit score band that best suits your circumstances and enter the amount you’d like to borrow and the time you’d like to repay the loan. The calculator will then work its magic and share an estimate of the full loan cost, the total amount repayable, and the monthly repayment.

Our car finance calculator is a great jumping-off point If you’re at the start of your car-buying journey or simply exploring the finance options available,

Keep in mind that this handy tool is made for illustrative purposes only and isn’t a quote or offer of finance.

But, if you’re looking to find out how much you can afford to spend on a new or used car, weighing up different loan term lengths, or wondering what difference improving your credit score could make to your monthly budget, the car finance calculator can help.

The car finance calculator is based on a typical hire purchase or HP car loan and uses several different variables to generate a result, including:

• The amount you’d like to borrow
• Your credit score
• The interest rate (APR)
• The length of the loan

You can use the sliders to amend the amounts and see how your loan could change. Increasing the amount to borrow but extending the loan term length, for example, could produce a lower monthly repayment.

If you have a set monthly budget in mind, you can amend the variables until you reach an amount that feels comfortable.

Try as many combinations as you like, and the calculator will do all the hard work for you!

You don’t have to have a fixed budget in mind before using the car finance calculator, but it could help!

Your budget could be based on the average cost of the car you want to buy or the amount you can comfortably afford to pay towards a monthly car loan.

Take some time to work out your affordability. A good rule of thumb is to base your affordability on your monthly income minus essential costs like your mortgage, utility bills, and food shop. The remaining amount is considered disposable income and could be put towards a car loan.

Don’t forget that your car loan payment won’t be the only cost you’ll need to cover when buying a new car. You’ll also have to pay for its running costs like insurance, tax, fuel, MOT and service, and any repairs, which will all eat into your budget.

Depending on the type of car loan you choose and the lender that approves you, you might be eligible for a loan term between one and six years.

A longer loan term will spread the cost of your new car into more monthly payments, which means these can be lower. However, it’s worth noting that long terms also mean you’ll be paying back more in interest.

If you can afford higher monthly repayments, a shorter loan term could incur less interest and be a better deal for you overall.

Check the total cost of credit and the repayable amounts on the calculator to compare the difference a longer loan term can make.

The car finance calculator is a helpful tool that you can use to get an estimate of your potential monthly loan repayments.

However, it’s not always the same as the quote you’re offered when you apply for car finance. The calculator doesn’t take any personal information into account other than your approximate credit banding so that many unknowns could impact your final quote.

When calculating your quote, lenders will consider several other factors alongside your credit history, including your income, employment status, age, and the type of vehicle you want to buy. Therefore, your tailored car finance quote can be lower or higher than the calculator result.

While our car finance calculator is based on HP car finance, different types of loans could be the right option for you:

Hire Purchase (HP)

Hire Purchase (HP) is one of the most popular types of car finance available. It allows you to split the cost of a new car into affordable monthly repayments. The loan is secured against the vehicle, which means you won’t be its owner during the agreement, but once all the payments are made, you’ll become the car’s legal owner. HP loan repayments can be higher than other types of finance, but they are also often available to people with less-than-perfect credit scores.

Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) is a type of loan secured against the car, but unlike HP, you don’t have to become the car’s owner at the end of the agreement. Instead, you can choose to hand the car back or use any positive equity as a deposit in a new deal if you wish. You also don’t have to cover the car’s full purchase price with your loan, meaning PCP loan repayments can be lower than other finance options.

Personal Loan

Personal loans are typically unsecured, which means as soon as you use the loan to buy a new car, it’ll be all yours. However, as unsecured loans pose more of a risk to the lender, you’ll usually need a good or excellent credit score to qualify.

There’s no one-size-fits-all in car finance; the right deal for you will be tailored to your circumstances, lifestyle, and budget.

If you drive many long distances and want to own your car eventually, an HP deal may be the best option for you. A longer loan term with lower monthly repayments may be preferable if you’re concerned about affordability.

In contrast, if you’d rather prioritise low monthly payments, a shorter loan term, and the flexibility to hand the car back at the end of the agreement, PCP might be a better fit.

At Autedia, we will always look to find you the best car finance deal from our wide panel of lenders.