Car Finance Calculator UK

Ever heard the saying knowledge is power?

Well, with our car loan calculator, you can get all the know-how you need in just a few quick clicks.

Start by finding out how much you might be able to borrow to buy your next set of wheels based on how much you can how much can you afford to spend on your car repayments each month.

Already know how much you want to spend? Great! You can use the car loan calculator to get a rough idea of what your monthly payments might look like.

All you need to do is select the credit score band that best suits your circumstances, enter the amount you’d like to borrow, and how long you’d like to have to pay it back.

The calculator will then work its magic and come up with an estimate of the full cost of the loan, the total amount repayable, and the monthly repayment.

no matter whether you’re at the start of your car buying journey or just satisfying your curiosity, our car finance calculator is open to everyone.

The only thing you need to remember is that this handy tool is designed for illustrative purposes only and isn’t a quote or offer of finance.

But, if you want to find out how much you can afford on your dream wheels, weighing up the pros and cons of different loan term lengths, or wondering what difference improving your credit score could really make to your monthly budget, the car finance calculator has got you covered.

Do I need to have a budget in mind before using the car finance calculator?

You don’t have to know how much you want to spend before using the car finance calculator, but it might help!

Your budget could be based on the average cost of a car that meets your specs or on the monthly payment amount you can comfortably afford each month.

It’s worth taking some time to look at your affordability. A good rule of thumb is to take your monthly income and take away all your essential costs like your rent, electricity bill, and food shop. Whatever amount is left over counts as disposable income and could go towards a car loan payment.

Don’t forget that your repayment isn’t the only cost you’ll need to cover as a newly minted car owner. You’ll also have to pay for its running costs like insurance, tax, fuel, MOT and service, and any repairs, which’ll all eat into your budget.

How long is a piece of string? No, don’t worry; we’re not going to be that vague.

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

Generally speaking, a longer loan term comes with lower monthly payments. But it’s worth noting that long terms also mean you’ll pay more interest over time.

If you can afford to pay a bit more each month, a shorter loan term could help you save on interest and end up with a better deal overall.

Check the total cost of credit and the total amount repayable amounts on the calculator to work out the best compromise for your circumstances.

The car finance calculator is great for estimates, but it probably won’t be an exact match to the quote you receive when you make your official car finance application.

That’s because the calculator doesn’t know anything about you other than what your credit score might look like. There are a whole host of unknowns that could play a role in your final quote.

Your personal car finance quote will be based on a few different factors, not just your credit history. These include your income, age, job status, and the car you want to buy. That’s why this more precise quote could work out higher or lower than the estimate the calculator gave you.

While our car finance calculator is based on HP car finance, that might not be the best loan type for you.

Luckily, there are a few different options to explore:

Hire Purchase (HP)

Hire Purchase (HP) is one of the most popular types of car finance. It lets you split the cost of your new wheels into affordable monthly repayments. The loan is secured against the car, which means you won’t be its owner during the agreement, but once all the payments have been made, it’ll officially be all yours. HP loan repayments can be higher than other types of finance, but they’re also often available to people with less than perfect credit scores.

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

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

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

If you commute an hour to work and back every day and want to own your car eventually, an HP deal might be the best option for you. A longer loan term with lower monthly repayments might suit you if you’re concerned about affordability.

On the other hand, if you’d rather keep your monthly payments as low as possible, have a shorter loan term, and have the flexibility to hand the car back at the end of the agreement, PCP might be a better fit.

No matter what option you choose, here at Young Car Driver, we’re here to help you find best car finance deal from our wide panel of lenders.