How much will the monthly repayments be on my car finance agreement?

By: david.penman     Approved by the Car Finance Advisory Board

When you apply for car finance you should give careful consideration as to what monthly payments you can afford.

The monthly repayments for your car loan will depend on a number of factors, such as the APR you've been offered, the term of the agreement, the loan amount and your personal circumstances. To help figure out whether you can afford car finance, you can use our handy Car Finance Calculator, or read on for more questions about your monthly repayments.

Do I need to pay a deposit, and how will it affect my monthly repayments?

Depending on your circumstances we may require you to pay a deposit to help mitigate the risk of lending to you and reduce your monthly repayments. If you can work out how much you can realistically afford for your car finance deposit and let your Customer Advisor know when you make your application, you may get better car finance quotes. To find out more about putting down a deposit for car finance, visit our dedicated help section.

Are the interest rates fixed on my monthly repayments?

All of our products (other than Contract Hire, which can differ slightly because it's a car leasing product) have fixed interest rates. This means that the interest rate offered at the start of the car loan won't change for the duration of the contract.

Is the term of my contract fixed?

For Hire Purchase, Contract Hire and Lease Purchase agreements the term of the contract is fixed, so your monthly repayments will stay the same. In a Personal Contract Purchase, there's some flexibility to extend or reduce the length of the term, although this is dependent on the lender and your personal circumstances.

Can I afford the car finance monthly repayments?

It’s important that you work out whether or not you can afford the car finance monthly repayments before taking out any form of car loan. Under FCA guidelines, lenders are prohibited from making you a loan offer where the monthly repayments are more than 25% of your monthly salary. To find out what is included when we calculate your income and how you will prove your income check our dedicated Help sections.

If you can’t find the answer to your question here, please use our LiveChat service to speak to an expert Customer Advisor.

Do you charge early settlement fees for paying off a loan early?

No. If you decide that you want to settle your loan early there'll be no charge for this. 

Can you make overpayments on your loan agreements?

Yes, however this does vary from lender to lender. Some lenders are happy to reduce the term on the loan whilst others will be happy to lower your monthly repayments.

Published: 16/05/2016
Last Updated:09/08/2016
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