Jan24 Archives - Page 11 of 15

What Used Car Finance Rates Can I Get with Excellent Credit?

Shopping for a used car and feeling good about your credit history? That’s great news. Your financial footprint has a big impact on your ability to secure a car loan and there are huge benefits associated with keeping it in good health. If you’ve been really conscientious you might even land yourself in the coveted “excellent” category. In this case, you may be wondering about used car finance rates with excellent credit.

Considered the holy grail of credit scores, an excellent credit score has the power to unlock a wider range of financial products and services. What’s more, it can also increase your borrowing limits and reduce your interest rates. Before we dive into what used car finance rates excellent credit can unlock for you, let’s take a moment to define credit scores and why they matter.

Understanding credit scores

A credit score is a points-based rating calculated using your financial history. It offers lenders an idea of what you’re like as a borrower, using data from credit cards, loans, direct debits and other money-based sources. The higher your score, the better deals and rates you’ll enjoy from lenders. Similarly, lower scores jeopardise your chances of securing credit and enjoying access to the best rates.

Experian, one of the largest and most trusted Credit Rating Agencies (CRAs) in the UK and our CRA of choice at My Car Credit, defines credit ratings as follows:

“A credit score, also known as a credit rating, is a number that reflects the likelihood of you paying credit back. Lenders like banks and credit card companies will look at your credit history when they calculate your credit score, which will show them the level of risk in lending to you. The higher your credit score, the better your chances of being accepted for credit, at the best rates.”

Calculating credit scores

Lenders rely on several CRAs to generate your score, including industry leaders Experian, TransUnion and Equifax. Each agency uses a different numerical scale to calculate individual ratings. While the numerical scale can vary, all scores will generally fall into one of five categories – excellent, good, fair, poor and very poor.

For example, TransUnion calculates credit scores out of 710. Scores between 628 – 710 are considered excellent, while scores between 604 – 627 are good and scores of 566 – 603 are fair. Experian scores range from between 0 – 999, with scores of between 721 – 880 classified as fair and 961 – 999 considered excellent.

What’s an average credit score?

Drawing on data from more than 900,000 users, MoneySuperMarket estimates the average Brit has a credit score of 569 using the TransUnion scale. The south of England has the best track record, with Kingston upon Thames topping the leader board with an average of 586. Guilford, Redding, Redhill and Harrogate were all close behind.

What is an excellent credit score?

To be considered an “excellent” borrower, you’ll need to have an Experian score of between 961 and 999. This is the number that will help you secure access to the best car loans in the UK.

The perks of “excellent” credit

Find yourself in the highly sought after “excellent” category? Congratulations! You’ll be open to a range of benefits of excellent credit, including used car finance rates.

Say you’re looking to purchase a used car for £10,000. With an excellent credit score you’d increase your chances of securing such a large loan significantly. Your excellent credit would also unlock you the best interest rates, with typical Annual Percentage Rates (APRs) of around 6.9%. Over the course of a five-year loan, you would pay a total of £11,800, or £1,800 in interest.

For the same loan, a borrower with a “fair” credit rating would be given a higher interest rate to reflect the increased risk for the lender. The same £10,000 loan would be subject to an APR of 13.9% which would translate to a total payable amount of £13,685.20 over 10 years. The difference in interest paid is more than £1,885, meaning an excellent score saves you a sizeable amount of cash.

Improving your credit score

Not quite an “excellent” borrower? It’s important to understand that once your credit card rating is established it isn’t set in stone. Instead, credit ratings are dynamic and constantly evolving. They can increase or decrease over time depending on your financial behaviour, which means it’s important to stay on top of your credit and establish good financial habits.

The shifting nature of credit ratings is also a great opportunity to improve your score. If yours is less than ideal and you’re hoping to boost your eligibility, there are a few effective steps you can take. In no time you could secure the same used car finance rates excellent credit borrowers enjoy.

· Register to vote

Joining the electoral register can be an easy and effective way to boost your credit rating. It’s as easy as registering to vote via the gov.uk website and takes a matter of minutes.

· Set up direct debits

Forgetting to pay off your credit card or phone bill can have a negative impact on your credit score. Keep yours clean by setting up direct debits and eliminating the monthly task of manually transferring money between accounts.

· Reduce your credit card debt

Just because you have a £5,000 credit card limit it doesn’t mean your account should be maxed out. Generally, we’d advise using no more than 25% of your limit. The upside is that this shows lenders you’re a responsible borrower who won’t get out of their depth.

· Cull your cards

While it can be tempting to sign up for multiple credit cards this behaviour can compromise your credit score in the long run. This is because it can suggest you’re a serial borrower. As well as snipping your card in half you’ll also need to get in touch with your bank and close the account officially. While this may trigger a slight drop in your credit score initially, it should start to climb again soon.

Excellent credit rates for used car finance

Want to know more about how to make the most of your excellent credit score? At My Car Credit we specialise in helping top-tier borrowers secure the best used car finance rates excellent credit can unlock.

Don’t quite hit the mark? We’re also experts in securing loans for borrowers with good, fair, poor and very poor credit ratings do don’t be shy about reaching out if your score is less than ideal. Best of all, our car finance eligibility checker doesn’t affect your credit score.

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

When is the Best Time to Buy a Car?

Securing a good deal on a new or used car is one of the most important things for any driver. Sadly, it’s not as simple as picking a vehicle that’s within your budget and driving it off the forecourt. Unbeknownst to many drivers, different issues impact the suitability of a car.

The time of year is a prime example. If you keep your eyes on the calendar, the reality is that you will have a bigger chance of bagging a bargain. With that in mind, below you’ll find some useful tips that finally answer the question – when is the best time to buy a car?

Remember the seasons

It’s hard to see why the seasons should affect the price of a car on the surface. But, when you delve deeper, you’ll spot a couple of blindingly obvious issues. For instance, convertibles are much more pleasurable to drive in the summer. As a result, the demand for convertibles is high in the warmer months, which can add onto the asking price. Conversely, summer is a good time to shop for a 4×4 since demand is low compared to the wintertime.

Factor in the launch of number plates

Number plates have the same effect on car sales as the weather. When the latest registrations are released, people flock to get hold of cars that represent the fact they own a new plate vehicle. As a result, the demand at the time is incredibly high, meaning that there isn’t much room for haggling.

The trick is to stay away from dealerships on these busy dates, which are usually March 1st and December 1st. Instead, you should go much later in the month, or the year if you have the room to manoeuvre, to avoid paying higher rates.

Understand your budget

Your budget will change monthly. This is because you will have regular incomings and outgoings that affect your ability to pay for a vehicle outright. Yes, you can save up, but it takes the average person years to accumulate enough to walk into a dealership and drive away with a brand spanking new motor.

You may now have answered when is the best time to buy a car but how will you pay for it? You may have the option to purchase a car through a financing service that breaks your expenses down into bite-size chunks. By paying monthly, you should have plenty in your account to cover the transactions. And, it doesn’t matter if your credit is low as car finance poor credit deals are available. Once you understand your budget correctly, you can find ways to get what you want without having to wait a lifetime.

At My Car Credit, we are specialists in finding top-of-the-range financing solutions that are tailored to your specific requirements. With us, you don’t have to bother about the time of year as we scour the industry to locate the best quotes. Call us today to learn how we can guide you through the process!

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What are the New Number Plates for March 2023?

What are the Most Quiet Cars to Drive?

What are the Most Popular Japanese Car Brands

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

best time car buying car dealer Jan24 new registrations timing

Car Finance APR: What Does it Mean?

You need to buy a car but don’t have the money. Thankfully, your bank balance doesn’t mean you have to forfeit one of life’s main necessities. Car finance is on hand to provide the resources you require to own a vehicle.

Most people understand what the process entails, whether it’s opting for a hire purchase or a lease purchase with balloon payment. However, APR is something you’ll come across when searching for car finance and you might not know what it means. What is car finance APR? Keep reading to find out.

What is car finance APR?

The simplest way to understand APR is to view it as interest. The acronym stands for Annual Percentage Rate, and it’s the amount added on in interest yearly. It also includes any compulsory charges. APR continues to be included within your repayments deal until the deal is over and you either give the car back or own it outright.

How does it work?

APR works in the same way that most interest rates work. In terms of car finance, the dealership you choose will use a standard measure to calculate the amount of interest you need to pay. The higher the rate, the more you’ll pay back in the long-term.

What Can APR Affect?

Car finance APR mainly impacts how much you will pay over the course of a contract. The figure isn’t taken into account within the deal as it’s added on afterwards. Therefore, it’s essential to figure how much it is and whether you can afford it before signing on the dotted line.

Finance APR is a good indicator of offers as you can use the rate to compare quotes with other dealers on the market. For example, if everything is the same except for the APR, you could save a significant sum.

My Car Credit’s finance calculator

At My Car Credit, we recognise the need to be transparent, which is why we have a loan calculator tool you can use free of charge. If you ever wonder, ‘can I get car finance?’ you don’t need to wait too long to find out!

Of course, you can always contact a team member and discuss your options with them directly.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Do Car Finance Calculators Work?

Calculate Which Factors Affect the Cost of Car Finance

7 Factors That Can Affect Your Credit Rating

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 Jan24

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

How Do Car Finance Calculators Work?

Calculate Which Factors Affect the Cost of Car Finance

7 Factors That Can Affect Your Credit Rating

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

How Do Car Finance Calculators Work?

Calculate Which Factors Affect the Cost of Car Finance

7 Factors That Can Affect Your Credit Rating

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

How Much Car Finance Do I Qualify For?

Car loans can be a great way to unlock extra spending power and purchase the car you want sooner. The model is hugely popular across the UK, with the latest figures from the Finance & Leasing Association suggesting one in nine new car purchases are paid for using car finance.

While most people are eligible for car loans the amount you can borrow does depend on several key factors. It’s important to consider these when browsing for new cars and hashing out your budget. To help you get an idea of your personal borrowing power we’ve put together a detailed guide to calculating car finance.

Your credit rating

The role of credit ratings is often overlooked when applying for car finance loans. The reality is that credit scores play a hugely important part in determining how much car finance you qualify for. Like home loans, credit ratings are used by lenders to develop an idea of the type of borrower you are. They want to be sure you’ll pay back your debt which is why the process is so carefully vetted.

Ultimately, credit checks are used to determine how much risk is associated with offering you a loan. So how much car finance do you qualify for? Let’s take a look at some of the factors that can affect your credit rating:

Payment history

The first thing lenders will look at is your payment history. Even one missed payment can have a negative impact on your credit score so it’s best to stay on top of your debts, even if you’re making the minimum repayment. Regular credit card repayments are one of the best ways to improve your credit score and position yourself as a responsible borrower.

Current debt

While credit card debt can be a good thing when applying for a car loan, too much can jeopardise your chances. The trick is to never use more than 30% of your available credit. For example, if your credit card has a limit of £5,000 you don’t want to have a balance owing of more than £1,500. This ratio helps to position you as a responsible and cautious borrower.

Previous credit checks

What many borrowers don’t realise is that credit checks can leave a permanent signature on your credit history. Applying for finance can result in the lender carrying out an in-depth credit check, which can appear on your report for up to 12 months. Banks will often carry out hard checks when vetting applicants for credit cards, mortgages and personal loans. It pays to be cautious when it comes to hard credit checks as too many can imply you’re a higher risk applicant. Why? Because too many credit applications in a short timeframe can suggest you’re too reliant on borrowing or are in financial trouble.

Unlocking better interest rates

Not only does your credit rating affect the size of your loan, it can also influence what interest rates you’re eligible for. Applicants with good credit ratings are generally seen as low risk, meaning lenders are willing to offer them better interest rates. Similarly, applicants with low credit ratings are deemed a higher risk and can be penalised with higher interest rates. Applicants with less than desirable credit scores can also be hit with larger fees and charges, another financial hurdle to consider.

At My Car Credit we understand just how important credit ratings are. That’s why we carry out all our initial credit checks using a “soft” approach. Unlike hard checks, soft checks don’t leave a trace on your personal record. This means they can’t be seen by potential lenders and won’t paint you as irresponsible or financially unstable.

Your monthly repayment budget

Your monthly repayment budget will ultimately determine the maximum value of your car loan. When crunching the numbers and calculating your monthly repayment budget be sure to factor in any extra fees and charges that may be associated with your loan. This can include anything from administration charges to ‘balloon payments’ at the end of a Personal Contract Purchase (PCP) loan.

Factoring in interest rates is also important. You need to ensure that your monthly interest rates don’t surpass your maximum monthly payment budget, or your loan will start to increase.

Calculating the length of your loan

The length of your loan will have a big impact on your monthly repayment responsibilities. For example, a loan of £3,000 over two years will require 24 monthly repayments of £125, not including interest and fees. The same loan spread over a five-year period would require monthly repayments of £50. While the cost of a five-year loan may seem lower, the longer term translates to additional interest. This isn’t necessarily a bad thing, though it is something to be aware of when calculating how much car finance you qualify for.

Using a car finance calculator

Wondering ‘how much car finance do I qualify for?’ In truth, there’s a lot to consider when applying for car finance, which is where a purpose-built calculator can really help. Developed by our team of car finance experts, the My Car Credit car loan approval calculator crunches the numbers for you.

Start with our at-a-glance car finance calculator that asks for your loan amount, preferred repayment term and credit rating score. For a more detailed estimate click ‘Apply Now’ and follow the prompts. Neither will impact your credit score and both are designed to help kickstart your car finance journey and get you in the driver’s seat ASAP.

Want to find out more? Get in touch with the My Car Credit team to discuss your application. With access to more than 25 lenders across all credit requirements, we have the knowledge and expertise to secure you the best possible car loans.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Do Car Finance Calculators Work?

Calculate Which Factors Affect the Cost of Car Finance

7 Factors That Can Affect Your Credit Rating

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 eligibility Jan24

How Do Car Finance Calculators Work?

So, you’ve found a fantastic dealership with the perfect set of wheels, and are looking to drive your new car off the showroom floor as quickly as possible. It’s likely you’ll be wondering how best to fund your new car and whether you’re eligible for car finance. What’s more, you may be questioning how car finance calculators work and how much car finance you’d even qualify for.

My Car Credit is here to answer those burning questions. We’ll walk you through using our straightforward online car payment calculator so that you can get behind the wheel with minimal worries and in control of a repayment scheme that works for you. Read on to find out more.

How car finance calculators work

We understand how stressful it can be determining whether you’re eligible for car finance and finding the best car finance option. Between the paperwork and administration, you can end up getting lost in the fine print and end up with a car finance repayment deal that is both confusing and overly expensive.

That’s why we’ve worked so hard to simplify the process, making it as streamlined and hassle-free as possible. Our online calculator is easy to fill in and takes mere minutes to get you answers, crunching the numbers so that you know exactly what you can expect to pay, and when.

What factors our car finance calculators consider

Our calculator helps you establish your monthly repayment terms against the amount you’re looking to borrow. You simply fill in the car loan amount that you’re looking for, and your preferred repayment term, followed by your credit rating. We’ll also ask you for some personal information, such as your email address, current UK address, and employment details.

The calculator will then instantly break down this information and detail the typical rate of interest and monthly payments that you can expect to see depending on your personal circumstances. We’ll also outline the total amount payable, and explain our reasons for this. The calculation is subject to status, but it’s a good indicator of what your options are for car finance.

The benefits of car finance calculators

Using a car finance calculator can help you to establish what type of car finance is right for you. By being able to see any interest rates or monthly payments upfront, you can better see whether the loan offered suits your particular needs and requirements. Don’t forget that a late or missed repayment will affect your credit score, so using a car finance calculator to work out what type of monthly repayment you can afford is a huge advantage. That way, you’ll be better able to budget for your new set of wheels without being unrealistic.

Car finance calculators can be used in one of two ways, depending on where you are in the search for your vehicle. You could use the calculator to work out how much you’ll be paying for a specific car that you have your eyes on. Equally, you can use it pre-emptively before you’ve even found a car to establish whether you’re eligible for car finance. That way, you can establish how much you can afford to borrow before setting out on your search, which might avoid any disappointment further down the line.

Best of all, it’s free to use and there’s no obligation to go ahead. Plus, with us, the rate you see is the rate you get – we won’t surprise you with any extra costs or hidden terms.

Do car finance calculators affect your credit score?

One of the details that we’ll ask you to include when using our car finance calculator is your credit score – whether it’s excellent or good, fair, poor, or bad. Our calculator provides you with a credit rating guide which you can use to judge your rating.

But don’t worry, we’ll only do an initial soft search. This means we’ll conduct a search on your credit file that other lenders can’t see, meaning there’ll be no unexpected impact for you. We make an assessment of your creditworthiness based on the details you provide us and give you an indication of APR (annual percentage rate).

We’ll try to give you an exact APR that’s dependent on your personal circumstances – this is known as your personal APR or real rate. It’s worth knowing, too, that 49% of our customers are likely to get a better rate than the Representative APR, which allows us to clearly advertise our services, so that you can gauge how the rates we offer you compare with other car finance offers.

Our initial soft search is a fantastic way for you to establish whether you’re eligible for car finance without affecting your credit score. But be aware that if you proceed with our car finance, then we will conduct a hard search.

How accurate are car finance calculators?

Our car finance calculator is specifically designed to be as straightforward and easy to use as possible. It helps you to establish the amount you can expect to pay for your new vehicle. Provided that you give us accurate, up-to-date information, there’s no reason that the car finance calculator would give you incorrect quotes.

That said, it’s worth bearing in mind that the numbers our car finance calculator provides are estimates and not offers. The quotes we supply are contingent on you giving us the correct information, and there are several factors that affect the ultimate cost of car finance.

Use our car finance calculator today

Whatever your car finance needs, My Car Credit is here for you. Our online calculator is easy to fill in and will give you an indication of eligibility and a quote within minutes.

If you choose to proceed with your quote, we have a team of car finance experts just waiting to help you through every step of the process. Backed by a network of over 25 lenders, we’re best placed to get every driver a great deal on finance for their next car. Start your car finance journey today.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

How Much Car Finance Do I Qualify For?

Calculate Which Factors Affect the Cost of Car Finance

7 Factors That Can Affect Your Credit Rating

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 eligibility eligibility Jan24

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

How Much Car Finance Do I Qualify For?

How Do Car Finance Calculators Work?

7 Factors That Can Affect Your Credit Rating

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

What Types of Finance Are Available for Used Cars?

Buying a car is likely to be one of the most significant purchases you make. Even for a second-hand model, a car represents a sizeable outlay. For this reason, many people choose to seek help in the shape of car financing. This can not only allow you to afford a better vehicle, but give you greater control of your finances, as well.

To meet this growing demand, there are now a number of different used car finance deals available. These include hire purchase, conditional sale, personal contract purchase, personal contract hire, personal loan and guarantor loan. The best way to finance a used car will vary from person to person, depending on their unique circumstances.

Used car finance deals

Our quick guide should give you a better idea of the options available and allow you to make an informed decision about whether to buy or finance your next vehicle purchase. Read on for a quick rundown of the types of used car finance on the market today.

Hire purchase (HP)

As one of the simplest types of car finance available, HP is also one of the most popular. Under this arrangement, you’ll pay an initial deposit, then hire the vehicle until you have paid for it in full. In addition, you’ll spread the remaining cost over a pre-agreed number of monthly instalments. There is no large payment at the end (as there is with PCP) but you may have some admin and transfer of rights fees to cover. Once you’ve paid the agreement off in full, the vehicle then becomes yours.

Conditional sale

A conditional sale arrangement is similar to HP. However, the monthly payments are usually higher but there are no fees to pay at the end. The ownership of the car will automatically transfer to you once the final loan amount has been paid.

Personal contract purchase (PCP)

PCP finance for used cars works on the same principles as HP. However, the difference is that a significant chunk of the total price of the car is held back for an optional final payment. That means that the monthly repayments can be a lot lower, making it easier to afford a newer or higher value vehicle.

At the end of a PCP finance for used cars deal, you will have a choice of three options. You can pay the final sum and own the car outright. Alternative, you can use any equity in the contract as a deposit for your next vehicle. Of course, you can simply walk away from the deal altogether. This can be a helpful option for those who aren’t sure if they would like to keep the car after the contract has run its course.

Personal contract hire (PCH)

PCH is essential a long-term leasing arrangement, whereby you pay an initial deposit and a series of monthly instalments thereafter. You must also adhere to a maximum annual mileage allowance. Bear in mind, you may face a hefty fee if you leave the contract before it has reached the pre-agreed expiry date.

Personal loan

A personal loan is similar to one you might obtain from a bank and will depend largely upon your credit score. The loan is not secured against the car itself. This means you can sell the car at any time as long as you continue to keep up with the repayments. You’ll also own the car outright from the get-go.

Guarantor loan

Aimed at those with a poor credit score, guarantor loans involve a third party who is liable for covering repayments that you yourself may not be able to. This is ideal for those who struggle to be approved for finance in general. What’s more, when adhered to responsibly, a guarantor loan can help to improve your credit rating. However, it is a big responsibility for both parties as both become liable should you not keep up with repayments.

Take stock of your options

The best way to finance a used car for you will depend greatly on your own personal situation. You’ll need to consider the type of car you wish to buy, whether you want to own it outright after the deal is concluded and what your credit history looks like. With that in mind, it’s a good idea to sit down and assess the options available to you. You’ll discover a vast resource on the internet to understand which type of finance is best for you.

In this respect, a car finance calculator can be a very helpful tool too. This will help you to understand how much you’ll be liable to pay throughout the course of a car financing contract. On the other hand, if you’d prefer to speak to a qualified professional and obtain advice about the best course of action for your situation, our team are always here to help.

Simply give us a call on 01246 458 810 or drop us an email at enquiries@mycarcredit.co.uk and we’ll get back to you at our earliest convenience. Your next dream car could be just a phone call away!

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

5 Different Ways to Pay for a Car

What is a Balloon Payment on a Car Loan?

I want to buy a car on finance, how much can I borrow?

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

finance options Jan24 used cars

Is It Better to Finance or Buy a Used Car?

For most people, buying a car – even a used one – represents a substantial purchase in the context of their normal spending habits. That’s why car financing is becoming an increasingly popular option among the British public, with 91% of new car buyers using a finance deal to fund their purchase in 2019.

Of course, your available budget is likely to be the biggest factor in deciding whether to finance or buy a used car. However, it’s not the only consideration you should take into account, with advantages and disadvantages on both sides of the coin. In order to help you reach a decision, here’s a quick look at the pros and cons of both options.

The case for buying outright

If you have the capital available, paying for a car with cash can be the simplest and most straightforward method of acquiring a new motor. After having finalised the deal and transferred the funds, you can drive away with your new set of wheels. There are no monthly instalments to pay, no interest to worry about, no credit checks to pass and no mileage limits to stay under.

While buying a car is certainly the cheapest option available to you in terms of the amount you will pay for it, you should bear in mind that the value of your asset will undoubtedly depreciate over time. That means that buying a car outright is not an investment you can expect to see returns on. What’s more, the fact that you’re paying upfront means that your choice of car is likely to be restricted by your budget.

The case for car financing

On the other hand, taking advantage of the various types of car finance available on the market can give you a much larger budget, allowing you to access a wider range of vehicles. This can result in a better driving experience for the duration of the contract. In addition, you’ll have a more valuable asset at its conclusion that will last longer and fetch a higher price when it comes to moving it on.

Meanwhile, utilising a car finance deal allows you to manage your cashflow far better. You can even use the money that you save by not buying outright to invest in stocks and shares, lay down a mortgage or build up a nest egg. Meeting your fixed monthly repayments will also reflect favourably on your credit score. Even better, you can dispense with the hassle of finding a buyer if you choose an appropriate car finance package.

Is it better to finance or buy a used car?

Ultimately, the choice of whether to buy or finance a used car will depend upon your own financial situation, the type of car you wish to purchase and the things you value most in life. However, there are plenty of very attractive advantages of using car finance which simply aren’t available to those who buy outright.

If you’re interested in finding out more about the car finance options available to you, or to make an application with My Car Credit, why not give us a ring? You can reach us on 01246 458 810 or by sending an email to enquiries@mycarcredit.co.uk and we can take things from there. Get in touch today!

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

What are the New Number Plates for March 2023?

What are the Most Quiet Cars to Drive?

What are the Most Popular Japanese Car Brands

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 buying finance options Jan24 used cars

Understanding credit scores

Calculating credit scores

What’s an average credit score?

What is an excellent credit score?

Improving your credit score

Excellent credit rates for used car finance

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

Remember the seasons

Factor in the launch of number plates

Understand your budget

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

What is car finance APR?

How does it work?

What Can APR Affect?

My Car Credit’s finance calculator

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

Car finance repayments – what’s right for me?

Repayment terms – what’s the difference?

What’s the best option for car finance repayments?

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

Is finance available for a prestige or supercar?

How do you work out the cost of supercar finance?

Supercar finance calculator

Let My Car Credit help you achieve your dreams

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

Your credit rating

Your monthly repayment budget

Using a car finance calculator

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

How car finance calculators work

The benefits of car finance calculators

Do car finance calculators affect your credit score?

How accurate are car finance calculators?

Use our car finance calculator today

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good