Use a car finance calculator to find out how much you could borrow to buy your next car and apply for a car loan.
You can apply for a car loan online through the bank website online, however to get the best rates on a car loan you must calculate your loan eligibility before making a detailed comparison of offers and schemes of leading banks.
Can you finance a used car; yes, using finance to purchase a car is not just a way to cut costs on an expensive new car, it is also common to purchase used vehicles on finance.
You can apply for a car loan from an online lender regardless of time of day or location, all you need is a computer and internet access and depending on the lender you may be able to find out if you're pre-qualified within minutes.
Best ways to finance a car; Personal Contract Purchase (PCP), Hire Purchase (HP), Personal Contract Hire (PCH), personal/bank loans, new car finance.
For £40,000 loans, monthly payments average range between £900 and £1,000 depending on the interest rate and loan term, with an interest rate of 6% and a down payment of £2,500 your monthly payment for a £45,000 loan over a term of 72 months will be £7,859 per month.
A used car loan is a type of personal loan that enables you to finance a second hand car that's typically over a certain age, when you take out a used car loan the loan provider will lend you the money you need to cover the purchase price.
Financial experts say that you should follow two simple rules to calculate how much you can afford to pay for car finance, don't spend more than 10% of your take home pay on a car finance payment and the total expenses of your car shouldn't be more than 20% of your take home pay.
For example the total interest on a £30,000, 60 month loan at 4% would be £3,150, so your monthly payment would be £552.50 (£30,000 + £3,150 ÷ 60 = £552.50).
With a three year £10,000 loan at a 4.5% interest rate your monthly payments would be £297 per month or more if you include the sales tax in the loan.
Although there's always going to be some negotiation the average used car loan interest rates are as follows; excellent credit 5.1% APR, good credit 4.91% APR, average credit 5.89% APR and poor credit 11.24% APR.