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8 Benefits of an Auto Loan Payment Calculator

From commuting to work to visiting friends and family on weekends, Brits across the country rely on cars to get them from A to B. Up there with buying a house, cars are a major purchase, so it makes sense to arm yourself with as much knowledge as possible when committing to a sale. This is where an auto loan payment calculator steps up. Fast, simple and easy to use, these handy tools make it easy to crunch your numbers when shopping for a new car.

In this article, we’ll take a closer look at the benefits of using an auto loan payment calculator and why every new car search should start with this simple step.

The popularity of auto finance in the UK

Before we get started, let’s take a moment to spotlight the popularity of auto finance in the UK. In 2022, Finance & Leasing Association (FLA) members provided more than £50 billion to fund the purchase of cars in the UK. Why is auto finance such a popular choice for Brits? Here are some of the benefits:

Affordability

The option to make manageable monthly installments instead of a large lump sum is one of the key benefits of auto finance. Many Brits don’t have the funds to purchase a new car outright but can easily commit to monthly payments. This model allows Brits to get behind the wheel of cars that may otherwise be out of their budget.

Flexibility

From Personal Contract Purchase (PCP) to Hire Purchase (HP), there’s plenty of flexibility when it comes to auto finance. There’s no need to adopt a one-size-fits-all approach. Instead, borrowers are free to choose contract and payment terms that match their unique needs.

Regular vehicle upgrades

Unlike owning a car outright, auto finance allows motorists to upgrade to a newer vehicle more often, typically every two to three years. This makes auto finance an appealing option for motorists who love to have access to the latest makes, models and cutting-edge technology.

Zero maintenance

Most auto finance plans include comprehensive maintenance packages, which eliminates some of the biggest costs associated with car ownership. This peace of mind is a huge draw for many motorists.

Why use an auto loan payment calculator?

Crunching your numbers doesn’t have to be a headache. Here are the benefits of an online calculator:

1. Finetune your budget

Cars are one of the biggest purchases made by Brits, so it makes sense to finetune your budget before you commit. Auto loan payment calculators make it easy to punch in your numbers and generate instant data. Simply input information like the loan amount, preferred repayment term and personal credit rating to generate an instant quote estimate.

When you’re ready to proceed with your application, more information like your income, financial history, job status and personal circumstances is used to generate a more accurate quote.

2. Compare repayment terms

The total cost of your car loan can vary significantly depending on your chosen repayment terms. Auto loan calculators make it easy to compare different repayment terms and choose a timeframe that fits your budget. For example, the monthly cost of a £7,500 loan with a repayment term of three years is around £243. In comparison, the monthly cost with a repayment term of five years is around £160.

3. No impact on your credit score*

Using an auto loan payment calculator allows you to learn more about your budget and potential borrowing power, without affecting your credit score. Instead of hard searches that leave a footprint on your credit history and can raise red flags for potential lenders, an auto loan calculator gives you the freedom to explore your options with zero repercussions.

4. Transparent cost analysis

Auto loan payment calculators break down the cost of financing and make it simple and easy to understand. You’ll get an instant idea of the principal amount borrowed vs how much you will pay in interest over the lifetime of the loan. This amount is determined based on the average Annual Percentage Rate (APR) secured by borrowers. This transparency helps British borrowers make smart and well-informed decisions when it comes to auto loans. It’s a philosophy that all brokers authorised and regulated by the Financial Conduct Authority (FCA) should adhere to.

5. Avoiding overcommitting

Calculating monthly payments in advance helps borrowers take out realistic and manageable loans. This proactive approach to auto finance helps prevent overcommitting and avoid financial stress down the line.

6. Borrow from trusted lenders

The best auto loan payment calculators are designed to connect borrowers with trusted lenders. For example, at My Car Credit we work with Evolution Funding Limited to match your application with a large panel of auto finance lenders.

7. Find the best match for your needs

Auto loan payment calculators don’t just match you with lenders. The best tools use specialised technology and algorithms to select the best products for your needs. This not only improves your chances of acceptance but unlocks the best possible rates.

8. Free to use and obligation free

Auto loan payment calculators are completely free to use. There are zero obligations to commit to a loan or even finalise an application. This makes car finance payment calculators a great option for both serious buyers as well as motorists who are in the very early stages of researching loans.

Crunch your numbers today with My Car Credit

Whether you’re purchasing your first car or looking to upgrade an existing vehicle, there are no downsides to using an auto loan payment calculator. Fast, easy and transparent, the auto loan payment calculator from My Car Credit is designed to streamline the finance process. It not only helps you budget, but also gives you a clear and accurate look at the total cost of your loan. It’s this transparency that makes auto loan payment calculators such a valuable tool for motorists looking to make informed and financially responsible decisions.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

Is It Smart to Finance a Used Car?

Before beginning your search for a car, it’s important to establish whether you want or need a brand-new vehicle. Being a car’s first owner might be appealing in many ways, but don’t forget that vehicles depreciate in value as soon as they leave the forecourt. So, whilst there are ways of securing car finance on new vehicles, you may find yourself wondering, “is it smart to finance a used car?”

Why finance a used car?

Used cars will cost less than new ones. Any car finance agreement for a used vehicle will therefore have lower monthly repayments and shorter terms than car finance for new vehicles. As such, if your credit rating is poor, you’re more likely to secure car finance on a used car compared to a new one, because the repayments are lower, so lenders will see the deal as less risky.

What’s more, car finance providers are becoming more flexible with the kinds of car finance deals available on used cars. From PCP to Hire Purchase, there are many different options available, and some providers will now also allow you to lease a used vehicle.

So, is it smart to finance a used car?

If saving money is your priority, or if your credit score is low, then it’s smart to finance a used car. Because the vehicle is used rather than brand new, any car finance agreement will have lower monthly repayments and shorter deals as a result.

You can use My Car Credit’s car finance calculator to get a sense of the kind of agreements that are within your reach. Alternatively, contact us on enquiries@mycarcredit.co.uk to find out how we can help you secure a great finance term on your used vehicle.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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How to Strengthen Your Eligibility for Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance car finance calculator car finance options Jan24 used cars

How to Use a Car Payment Calculator – What Can I Afford?

Shopping for a new car is exciting. From choosing the make and model you like through to deciding on accessories and design features, finding a new car is serious fun. But financing that purchase might be a different matter.

After a house, a car is likely to be the second highest purchase you ever make. As such, finding the money for that purchase may seem overwhelming, as you’re unlikely to be able to pay via cash up front. That’s where car finance can help. Car finance is a credit agreement that allows you to have full use of the car. You simply pay off via a series of pre-agreed monthly instalments plus interest. There are different kinds of car finance, and the right one for you will depend on your circumstances.

One of the key tools that will help you to determine the kind of car finance you can afford is a car finance calculator, and this article breaks down how to use a car payment calculator in order to calculate the kind of loan you can afford.

How to calculate your car finance

If you’ve started your search for car finance, you may have heard of the 20/4/10 rule. Per this rule, you should use the following parameters to find car finance that works within your means:

Make a down payment (deposit) of at least 20% of the car’s value
Choose car finance for a maximum of four years
Only spend 10% of your gross monthly income on the vehicle

Limiting expenditure on the car to 10% of your gross monthly income is arguably the most important thing to remember. Within this percentage, you also need to accommodate the vehicle’s running costs, like its insurance, maintenance expenses and fuel. This will also vary depending on factors including where you live and your annual mileage, but Nerd Wallet reports that it costs an annual average of over £3000 to run a car in the UK.

Establishing the budget that you have to work with for your car finance is therefore a vital first step. It will differ from your peers depending on the above factors (namely your salary and the running costs you can expect to pay for the car). Without establishing this budget in advance, you won’t have all of the information to know what you can afford, so it’s worth doing so before you use a car payment calculator.

Remember, you can often find car finance deals that will allow you to make smaller payments over longer periods of time, but this does mean you’ll be paying more on interest. This is why putting down a large deposit can have serious advantages, as it will make your monthly repayments smaller.

To calculate the kind of car finance loan you can afford, you’ll also need to know your credit score. You can use Experian’s free credit score checker to get this.

Once you’ve taken stock of your financial situation and set out a budget you can work with, you can use our car finance calculator to get an indication of what you’ll be able to borrow from us via an APR, a monthly repayment figure, total cost of credit and total amount payable.

What’s the APR?

All of the above factors will determine the annual percentage rate of interest (APR) that you’ll pay on your car finance.

You can get an exact APR (also known as a personal APR) by filling in our car finance calculator and choosing the ‘Apply now’ button. From there, you fill in a form which provides us with your personal information and financial history, as well as the kind of deal you’re looking for. We can then give you an APR.

Find out more about car finance today

If you have further questions or concerns about car finance, you can contact My Car Credit on enquiries@mycarcredit.co.uk. Our friendly team of specialists is on hand to address any queries you have, and will help to find you a finance agreement that works for your unique needs.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Can You Modify a Car on HP Finance?

Will I Get Accepted for Car Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

apr apr calculator car finance calculator car finance options Jan24

Should I Lease or Finance a Car?

Choosing between leasing or financing a car will depend on your needs and circumstances. In both instances, you’ll be able to use a vehicle as you pay a series of pre-determined monthly instalments – but the main difference between leasing and financing a car is whether or not you end up the vehicle’s owner.

As such, there’s no right or wrong answer to the question of whether you should lease or finance a car – it’s all about your priorities. Read on to find out more.

Car leasing and car financing – what’s the difference?

Leasing and financing a car may sound similar, but they do have key differences.

The main difference between leasing and financing a car is ownership. When you lease a vehicle, you’re essentially borrowing the vehicle from a dealer for a specified period of time – usually anywhere from 12 months up to 60 months. You’ll pay a monthly fixed amount which usually includes service and maintenance fees. At the end of the lease’s term, you hand the car back – you’re never its owner.

With car financing, however, you have the option of owning the car at the end of your finance term. Much like leasing, you’re making a series of fixed monthly repayments over a pre-agreed time period, after which time you have the option of making a final payment, making you the car’s legal owner.

Buying a car outright is the other option when buying a car – but you need savings or a personal loan in order to finance this.

Should you lease or finance a car?

As with anything, whether or not leasing or financing a car is most appropriate for you will depend on your priorities and preferences.

Leasing a car – the advantages

When you lease a car, your monthly repayment amount will typically cover service and maintenance costs.
As you are never the vehicle’s owner, you don’t have to worry about the car depreciating in value over time.
If you like to change your car frequently, leasing is a far more appealing option.
Because you won’t own the vehicle, you also don’t have to worry about reselling it at the end of the lease term.
If you use your car for business purposes, you may benefit from greater tax write-offs with a lease (unless it’s a luxury vehicle).

Leasing a car – the disadvantages

There’s usually a mileage limit for leased cars, and you do have to pay a penalty if you exceed this, so if you’re a driver of long distances, leasing may not be for you.
Although service and maintenance costs are covered, if you cause any serious damage to the vehicle, you may incur further charges.
You don’t ever own the vehicle.
You may also incur charges if you want to end the lease deal early.

Financing a car – the advantages

Car financing tends to be more flexible than leasing a car. Similar to leasing, you can use the length of the agreement, and you may be able to decide on an annual mileage limit and deposit amount.
Car finance is typically available on both new and used cars, whereas leasing is only available for the newest vehicles.
If you’re after the lowest possible monthly repayments, car finance on a used car is the best option.
At the end of car finance, you’ll own the car. Depending on which finance you’ve gone for, you may need to make a final payment, after which you are the car’s legal owner.

Financing a car – the disadvantages

With PCP finance, you can choose whether or not you want to own the car at the close of your deal. However, as with leasing, if you opt to return the car, but have exceeded the mileage limit or caused excessive damage to the car, you will incur extra charges.
You are locked into a repayment schedule, so you need to ensure that your financial circumstances aren’t likely to change whilst you’re repaying your car finance. Missed repayments will affect your credit score – though there are ways of securing car finance even with a poor credit rating.

Talk to us about car financing and leasing

If you still have questions about whether car finance or a car lease is best for you, get in contact with My Car Credit on 01246 458 810 or email enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator car finance options car lease Jan24 leasing

What’s the Best Way to Compare Car Finance Deals?

Woman using laptop to compare car finance

Purchasing a car is second in expense only to a house. Whether you’re looking for a brand new, nearly-new, or respectably used car, it’s likely that you’ll end up spending a significant portion of your hard-earned cash on the vehicle. That’s why finding the right car finance is a vital step in the search. What's more, knowing how to compare car finance deals will help too. This is because with the right deal, you’ll be able to budget for the vehicle, and know when and how much you need to pay out.

But with so many car finance providers out there, it can be incredibly overwhelming knowing where to begin your search. Not least because traditional methods of car finance – that is, getting a deal via the dealership from which you’re purchasing the car – is often still a viable form of securing car finance.

Car finance: online or dealership?

Traditionally when buying a car, buyers would turn to the dealerships from which they were planning to purchase the vehicle for their car finance. With the increased digitisation of products and retail, however, customers have become savvier towards alternatives. In addition, customers are more aware of the disadvantages this poses for getting the best deals.

Where dealerships only have a few lenders to go to, they may be limited by what deal they can offer you. What’s more, they may also struggle to find you finance if you have a less than perfect credit profile.

With the boom in online car finance comparison websites, however, you get more choice and flexibility when you compare car finance providers. With deals from lots of different lenders being compared, you’re more likely to get a great deal, no matter what your credit score.

The fallout of the pandemic also makes online car finance comparison far more attractive. You no longer need to travel in person to visit different dealerships and compare various car finance options. Instead, you just need a connection to the internet and a device in order to search for your best choice. So not only is it less time-consuming and more flexible, it’s also a safer all-round experience.

How to compare car finance deals

Comparing car finance online is one step forward for customers. But online car finance brokers can make things even easier. Comparing car finance deals through a dedicated broker saves customers time, money, and hassle. More over, it allows you to take back the wheel and find a deal that suits your needs and requirements. It also means you can consider the deal you’ve been offered without any pressure, from the comfort of your own home.

This is where My Car Credit helps customers across the UK. We are consistently told by customers that our online car finance calculator makes the process of comparing car finance options more streamlined. It’s designed to help you, so is super speedy and straightforward – our goal is to get you a deal that suits you, with no pressure and no obligation to go ahead.

Using our car finance calculator, you input the car loan amount for which you’re looking, and your preferred repayment term. From there, we’ll ask you for some personal information, like your email address and employment details. Next, we’ll perform a soft search credit check, but this won’t affect your score. Finally, our complex algorithm matches your unique circumstances and needs with the right product and lender for you.

We have the largest panel of car finance lenders out of any broker, so you have the best platform possible from which to conduct your search. It also means that you’re more likely to be accepted for car finance, as you know your parameters from the get-go. We also won’t suddenly change the terms of the deal – so long as you give us all the right information when you apply, the rate you see is the rate you get.

Check for car finance deals today

Comparing car finance has never been easier, thanks to My Car Credit. Our online application system can find the best car finance deal from our panel of lenders in minutes. And if you have any questions, or simply prefer to speak to a human, our friendly team of car credit specialists can guide you through the process, easing any concerns you may have and addressing queries. Call us on 01246 458 810 to find out more.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator compare

Car Finance Repayment Terms: What’s Best for Me?

At My Car Credit, we understand how confusing car finance repayments can be. You might have found the perfect next set of wheels. However, you may also find yourself getting lost in a sea of paperwork and admin. Even worse, you may be getting tripped up over hidden costs and surprise terms and conditions.

But don’t panic – this article is designed to clear that confusion! What’s more, we’ll lay out what you can expect from different car finance repayment options, as well as the potential benefits and pitfalls of each. That way, you go into your search knowing what meets your requirements and how much you can afford. This means you can find a deal that suits you without wasting too much time or energy.

Don’t forget too, that once you’ve decided what kind of terms best match your needs, you can use our online car payment calculator to get a super speedy, straightforward quote from us.

Car finance repayments – what’s right for me?

First things first, and before you begin looking at repayment terms, it’s important to establish how much car finance you’d qualify for. Once you’ve worked this out, you’ll have a better idea of what to look out for when applying for car finance. This will allow you to tailor your search accordingly. We’ve also outlined what factors affect the cost of car finance too, in case you’re confused about that.

Repayment terms – what’s the difference?

Your car finance repayments will have a significant impact on what type of finance scheme best suits you. Below, we lay out the pros and cons of different repayment terms.

Short term loans

Typically, a short loan repayment term will tend to be between 18 to 24 months. Shorter repayment terms mean that you pay higher monthly repayments as you have less time to spread the cost. However, you’ll also pay less interest overall because you’re repaying your loan much quicker, slashing the amount of borrowing time.

The vehicle will also have a higher resale value once it’s been paid off. This is because a newer car is more attractive for re-sale than an older model, which is another factor to keep in mind.

Short repayment terms are great if you have a large monthly income and are financially stable. The upside is that you spread the car cost, slash interest, and can use your hard-earned cash on something else. Just be aware that you’ll likely be asked to prove that you have the income to fund a short-term loan. In the main, payslips and bank statements are the most obvious way to back this up.

Pros/Cons:

+ You pay off your owed balance quicker

+ Less interest payment overall

+ The vehicle will have a higher resale value once paid off

– You’re paying higher monthly repayments

– A potentially higher upfront payment

Long Term Loans

Long term repayments are the more traditional car finance package offered. You’ll usually spread the cost of your car over 48 or 60 months – 4 or 5 years in other words. This ensures that the repayments are more manageable than you’ll find in a short-term loan. What’s more, you may even be able to purchase a more expensive car, as you’re paying less upfront.

However, you’ll also end up owing money for a longer period of time. Plus, you’ll be paying interest for longer, which means the overall cost will be higher. This is because the amount you’re charged is based on the interest rate established at the start of the agreement, so you’re paying more to the provider with less value return on the vehicle.

Equally, a longer repayment period means that the value of your car will depreciate more. This is something to consider if you’re looking to sell or return the car at the end of the repayment term.

Pros/Cons:

+ Monthly repayments are more affordable

+ You might be able to purchase a more expensive car

– Lower resale value on the vehicle

– Interest payments are significantly higher

What’s the best option for car finance repayments?

It’s really important to go into your search for car finance knowing what you can afford. In addition, try to establish what suits your particular requirements – there isn’t a one-size-fits-all approach. If you don’t think you can front the monthly payments of a short-term repayment scheme, the long-term option is best for you. Equally, if you’re keen to trade in for a new vehicle after only a couple of years, the short-term option will be most appealing.

Using our car finance repayment calculator will help you to get a better idea of the best option for you. We design our car finance to be as flexible and user-friendly as possible. What’s more, we’ll give you a quote within minutes. We’ll only ask you for a few details, and our soft search check won’t affect your credit rating.

Talk to one of our friendly team today, and start your search for the best car finance for you.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator Jan24 monthly cost repayments

How to Calculate Car Finance on Prestige and Supercars

Owning a supercar is the stuff of dreams. Petrolheads love the idea of cruising around in an iconic Ferrari or Lamborghini as they are the pinnacle of the industry. However, they are very expensive, with most in the hundreds of thousands of pounds range.

In 2017, for example, the then-new Bentley Continental Supersports was £212,500. In America, the fee was even higher (around £250,000) as different countries have different rates. Of course, prestige cars can charge as much as they like because of the element of luxury. For people who are desperate to add them to their collection, that means having the resources.

But, not everyone does, and even those who have often prefer to pay in instalments. This is where supercar finance comes in handy because it splits payments into affordable lump sums. In this post, we’ll take a closer look at car finance for prestige cars and supercars.

Is finance available for a prestige or supercar?

It depends on the circumstances. Broadly speaking, the answer is yes. Prestige car finance deals exist, and lenders are happy to offer them to eligible applicants. However, you need to meet the lending criteria before you are able to sign on the dotted line.

The best way to do this is to talk through your options and focus on the factors that impact the decision. For instance, boosting your credit rating will show creditors that you’re trustworthy, making them more likely to lend you the money. And, of course, you’ll need to be able to afford higher monthly repayments that come with the higher cost of a prestige car. Using a supercar finance calculator will help you work out your expected monthly repayments.

What financing method should you pick? Take a look below at the options on the table:

Hire purchase

Hire purchase, or HP works in the same way for supercars as it does normal cars. You agree to a set amount that you pay monthly for an extended period of time. At the end of the agreement, you own the vehicle and don’t need to pay anything else.

Personal contract purchase

PCP finance works in much the same way. However, instead of owning the car being mandatory, you have the option to give it back at the end of the deal. PCP contracts have smaller monthly sums but require a larger ‘balloon payment’ at the end of the contract if you choose to buy the car outright.

Equity Release

An equity release unlocks cash that you have in your car. Essentially, you can trade your current vehicle in and use the money to lower the value of a prestige car or supercar.

How do you work out the cost of supercar finance?

Given that they cost a lot more than most cars, it can seem quite tricky calculating the cost of supercar finance. Higher numbers can make things confusing, which can be enough to put off a lot of prospective buyers.

Thankfully, it’s a lot easier than it sounds. You simply take the value of the vehicle and divide it by the number of months in the repayment period. All that’s left to do is include the rate of interest – you can break it down into annual or monthly – and you have a quick and reliable figure.

Supercar finance calculator

If you prefer to let technology crunch the numbers for you, we understand. In fact, we completely agree because the right piece of tech is powerful and easy to use. That’s why our car payment calculator is on hand to help anyone who would rather call on the help of specialist software.

To do the maths on your next prestige vehicle, you merely need to enter the loan amount you’re looking for into the calculator. Next, pick the length of the repayment – we give loans from anywhere between three and five years. Finally, choose the credit rating that most suitably describes your situation.

Why should you use it?

Well, it eliminates mistakes for starters. But, if that’s not enough, check out these incredible features on our supercar finance calculator:

Results take a matter of seconds
There’s no impact on your credit rating
You can apply right away once you receive a loan offer

Let My Car Credit help you achieve your dreams

If you’ve been desperate to purchase a supercar for years, then My Car Credit is ideally situated to make your dreams come true. As a trusted and reputable broker, we draw upon a network of over 25 lenders to find a great deal, whatever your circumstances.

There’s no fuss or hassle, just a quality service that gets the job done.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Tips for Securing Affordable Used Car Finance Monthly Payments

What Criteria Poor Credit Car Finance Lenders Look for in an Application

How Long Does It Take to Get Your Credit Score Up?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator Jan24 prestige supercar

Calculate Which Factors Affect the Cost of Car Finance

Brits are no strangers to car finance, with the latest data revealing around 90% of the 2.3 million new cars sold in an average year are financed through an FLA member. Finance can be a great way to unlock more spending power. However, before you apply it’s important to develop a good understanding of how the cost of car finance works.

What many people don’t realise is that the cost of car finance can vary significantly from motorist to motorist. Every applicant is different, and creditors will always adjust the cost of car finance accordingly. So which factors affect the cost of finance? Read on for our expert guide, including how to calculate the factors that affect the cost of car finance.

Cost of car/loan amount

The main factor that determines the cost of car finance is the overall price of the car and the total loan amount. This bottom line figure is what determines everything from monthly repayments to annual interest. While it can be tempting to focus on the price of the car itself it’s important to understand this isn’t the only factor at play. Interest rates, as well as extra fees and charges, can have a big impact on the overall cost of your loan. Before committing to a car loan, it’s always best to crunch the numbers using a cost of car finance calculator.

Deposit

Cash deposits are a major contributor as they directly affect the cost of the car and the loan amount. Deposits are taken off these figures which lowers the amount you need to borrow and brings down the total cost of car credit. For a quick and easy overview, check out our cost of car finance calculator.

Repayment term

Like home loans, repayment terms will have a big impact on the cost of your car credit. For example, if you plan to settle your car loan within two years, your monthly repayments will be 50% more than with a four-year repayment plan. Opting for the shortest repayment term possible is a good way to slash your interest expenses. Basically, the faster you pay off your loan the less interest you’ll be paying.

Interest rate

Creditors always charge interest rates on loans and these can have a significant impact on the total amount you pay back. Interest is calculated on the total amount you borrow, which means the higher the loan the more interest you’ll pay. A typical Annual Percentage Rate (APR) is 6.9%, which includes your interest rate and any applicable fees. This means that on a £10,000 loan across three years, you’ll pay 36 monthly payments of about £307, totalling £11,065. This includes the £10,000 you borrowed and £1,065 in interest and fees.

Your monthly payments are set from the start of the agreement and stay the same throughout. However, at the start you’ll be paying more of the interest and less of the loan balance. As you get towards the end of the term, you’ll be repaying less interest and more balance.

Before signing a contract you’ll also want to determine whether your interest rate is fixed or variable. There are pros and cons to each, usually dependent on your personal preferences and financial situation.

Credit rating

Credit ratings are incredibly important when applying for a car loan. They offer lenders an overview of what your spending habits are like and how responsible you are with money. This allows lenders to calculate the risk factor of offering you a loan and empowers them with the data to adjust interest rates accordingly. The risk is lower for applicants with good credit scores which means lenders are more inclined to offer lower interest rates. In comparison, applicants with lower credit scores are deemed higher risk and may be penalised with higher interest rates.

We always recommend starting with ‘soft’ credit checks as they won’t impact your credit score. Unlike hard checks, they don’t leave a trace on your credit score and aren’t visible to potential lenders. Take out too many hard credit checks and you risk presenting yourself as a volatile and credit-hungry applicant.

Type of car finance you’re going for

The type of car finance you’re looking to take out will also affect the overall cost of your loan. Hire Purchase (HP) loans are one of the most popular models and involve paying off the full value of the car in monthly instalments. The loan is secured against the vehicle, meaning you won’t officially own the car until you’ve paid off the last instalment. You don’t need to put a deposit down on many HP loans but it will help lower your monthly repayments and overall interest if you do.

Personal Contract Purchase (PCP) loans are another popular credit option. Designed to be more flexible than HP loans, they’re based on a long-term ‘rental’ model that usually spans over three to five years. During this time, you make payments that allow you to use the car over the agreed period. PCP loans often come with mileage limits and damage penalties so it’s important to understand all the fine print before you sign on. When your contract comes to an end, you’re offered the option of returning the car and upgrading to a new vehicle on a similar contract or purchasing it outright with a ‘balloon payment’.

Balloon payments are an interesting concept as they can be financially challenging in themselves. At My Car Credit we understand how difficult it can be to find the cash for car loans which is why we developed a special Balloon Payment Finance plan designed to help you own a car at the end of a PCP contract.

Extra fees and charges

Don’t overlook the additional fees and charges that can often come with car credit. These can include brokerage fees, monthly account-keeping fees, statement fees, late payment fees and penalty charges if you choose to terminate your loan early. All can contribute to the overall cost of your car loan and it’s important to know exactly what you’re paying for.

Securing the best car loans

Need help securing a car loan? At My Car Credit we comb through more than 25 trusted car finance lenders to find you the best deals. We also have a lightning-fast cost of car finance calculator that can be used to estimate your repayments in a matter of clicks.

As part of Evolution Funding, we’re backed by one of the largest motor finance brokers in the UK and have access to the most comprehensive panel of car loan companies. What does this mean for you? It boosts our chances of finding you the best possible car finance deals and ensures your repayments and interest rates are as low as possible. To find out more, get in touch with our friendly team today on enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Tips for Securing Affordable Used Car Finance Monthly Payments

What Criteria Poor Credit Car Finance Lenders Look for in an Application

How Long Does It Take to Get Your Credit Score Up?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator cost of car finance deposit interest rates Jan24

Check for car finance without affecting your credit score

It's natural that customers shopping around for car finance can be concerned that an initial credit search will negatively influence their credit score. Initial credit searches usually result in a mark on your credit score - especially when they are abandoned. Very often, customers like to check for car finance before they make a decision or before they've even found a car.

At My Car Credit, we help customers check whether they’re eligible for car finance before they formally apply. This is a great way of taking the worry out of assessing your options. We do this by carrying out a ‘soft search’ credit check at the very start of your application for car finance deals.

What is a car finance soft search?

A soft search is a type of credit check which allows us to see your financial history (i.e. how you’ve managed your loans and finances) without having this information exposed to lenders.

Here’s how it works. Start by using our car finance calculator to get an idea of your monthly payments and finance rate, based on your credit profile, loan amount and preferred contract length. Next, we ask you to complete a short online application form. This car finance checker should take no longer than three minutes to complete. We’ll require a few personal details such as name, address, date of birth, contact details, and employment details. You will then receive an instant online decision on screen, with confirmation by email and text.

A tailored approach to car finance

We understand that no two customers are the same. In addition, there are many different factors that can affect the outcome of your application. Our commitment is to find you the best finance solution possible. To do this, we adhere to lending regulations. This involves placing all our prospective customers into one of two categories: prime and subprime.

Prime customers (those with a good credit status) will receive an actual annual percentage rate (APR) – this interest rate is a transparent one, i.e. in the majority of cases this will be the rate a customer will pay.
Subprime customers (those with an impaired credit history) will receive confirmation of their application. The My Car Credit team will work hard with our panel of 30+ lenders to get the best deal for your circumstances.

Why does my credit rating matter for car finance?

Your credit rating is a barometer of how well you’ve used credit in the past and currently. It gives prospective lenders an idea of how likely you are to keep up with monthly repayments. For example, applicants with bad credit or ‘poor’ credit are typically higher risk when it comes to that monthly payment.

To account for this risk, many lenders will increase the interest rate for hire purchase or PCP when applicants have poor credit. That increases the total cost of your car finance loan.

In some cases, a low credit score can even mean you’re not eligible for car finance. However, we use a large panel of lenders with a commitment to find you a car finance deal based on your monthly budget. Even if you think you’re not eligible for car finance, it’s worth using a car finance checker with a broker like My Car Credit.

Soft credit checks are a car finance eligibility checker

A soft credit check is convenient and provides all the key information needed to get the wheels in motion. However, the key benefit of a soft check is that it is not visible to lenders on your credit report. This means that it won’t affect your credit score or your future ability to obtain finance. This is true even in the event that you are declined for finance with us.

If you were to ask for a copy of your credit report, only you will be able to see the soft search on there. Within reason, you can have as many soft searches as you like without affecting your credit score. Essentially, a soft search checks for the same type of data that a ‘hard’ credit search would. The difference is, there is no risk of putting a mark on your credit file.

Because of this, we can use a soft search as a car finance eligibility checker. It gives us a glimpse into your financial situation, including your credit score, employment status, address history and whether you’re on the electoral roll. Using that quick eligibility checker, we will make a decision about your car finance agreement and whether you are eligible for car finance.

Important! Whilst the initial soft search will not leave a mark on your credit file, progressing to a full application may require some lenders to perform a hard search. This allows them to complete their full due diligence of your financial status. A hard search will show on your credit file and can be seen by other potential lenders.

What does all this mean for you?

The approach at My Car Credit means you have the freedom to shop around for car finance before making a decision. It also ensures that you aren’t penalised if you are refused car finance..

There is also no obligation or fee attached to the soft search application process with us. If you’re not sure that the quoted rate is right for your circumstances, you are free to take the information away with you. However, if you are happy to proceed with the rate you’ve been quoted, simply complete your application with us – it’s as easy as that.

Put simply: A soft search is a fantastic way of starting your car finance application without the worry of affecting your credit score. Soft search provides a very good indication of where you stand in terms of being approved for credit. It’s worth noting, it is not a replacement for checking your credit history and improving your credit score before making an application.

Use our car finance checker today

My Car Credit can help you get a new car even when other lenders have failed. That’s because we consider more than just your credit score for eligiblity. With a panel of lenders to borrow from, we can assess your loan based on your monthly budget to dig deeper into eligibility – all in a short space of time.

Sound good? It all starts with our car finance calculator. Enter your loan details today to see whether you’re eligible with our panel of lenders.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Tips for Securing Affordable Used Car Finance Monthly Payments

What Criteria Poor Credit Car Finance Lenders Look for in an Application

How Long Does It Take to Get Your Credit Score Up?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance calculator car finance check car finance eligibility Jan24 soft search

Why You Should Steer Clear of Low Rate Car Finance Promises

Frustrated lady on laptop trying to find low rate car finance

Buying a brand-new or used car is often a serious investment. It can be tempting to offset costs by opting for a car finance agreement that guarantees astonishingly low interest rates.

However, when something sounds too good to be true, it usually is! In reality, finance companies can't promise low rate car finance for all applicants. This is because they’re calculated based on individual credit scores and circumstances.

How are interest rates calculated?

So, shiny promises aside, how is car finance interest calculated? The outcome depends on many variables, including a person’s credit history, income, desired vehicle model and deposit.

Without a doubt, a person’s credit score is the most significant factor. This is a rating everyone has based on their financial history. This rating helps lenders to determine potential risk, interest rates and credit limits. It’s used to gauge someone’s trustworthiness and likelihood to pay back instalments. A good credit score increases your chances of securing a lower interest rate and overall monthly repayments.

However, at My Car Credit, we understand that unforeseen circumstances can impact a person’s credit rating through no fault of their own. This is why we’re open to accepting applications from people with less than perfect financial backgrounds.

If you’d like to improve your chances of securing finance, there are plenty of simple ways to bolster your rating and generate more favourable interest rates before applying.

We can help you find the best possible interest rates

Whilst we would never promise you a low interest rate, we are in a great position to find you the best deal on car finance for your circumstances. We have the largest panel of lenders out of any UK car finance broker. This gives us the best chance of matching you to a lender with the most desirable interest rates.

To start your journey, speak to one of our knowledgeable team members by calling 01246 458 810 or emailing enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

8 Advantages and Disadvantages of a Balloon Payment

How Much Car Finance Do I Qualify For?

Car Finance: A Complete Guide

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

apr car finance calculator Jan24 low rate car finance

The popularity of auto finance in the UK

Affordability

Flexibility

Regular vehicle upgrades

Zero maintenance

Why use an auto loan payment calculator?

1. Finetune your budget

2. Compare repayment terms

3. No impact on your credit score*

4. Transparent cost analysis

5. Avoiding overcommitting

6. Borrow from trusted lenders

7. Find the best match for your needs

8. Free to use and obligation free

Crunch your numbers today with My Car Credit

Rates from 9.9% APR. Representative APR 10.9%

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