Can I Get Car Finance Of £6000 Over 3 Years?

Are you looking to get car finance of £6,000 over 3 years? Contract terms for car financing range from one year to seven years. During the previous years, more and more car buyers preferred more expensive vehicles. Along with that, the prices of cars actually increased. So, for them to be able to make the monthly repayments, they opted for longer car finance contract terms. 

The average contract term today for a brand new vehicle is 72 months, and following that is the 84-month term. About 70% of car finance contracts have 60-month terms or longer. This is also true for used cars, not just brand new vehicles. Even if second-hand vehicles are more affordable, many car buyers still prefer longer contract terms so they can reduce the monthly repayment amount. Although, of course, they end up paying more overall. 

Why Choose Short-term Car Financing?

Between a short-term and long-term contract for car finance, it would be more advantageous for you to pick short-term. Yes, the monthly repayment amount would be higher, but you can pay off everything quickly. You’ll be free from your obligations and the car is now yours. You can do whatever you want with your car like modify it, resell, or trade it. 

Also, since you’re borrowing money for only a short period, you won’t have to pay a lot when it comes to interest. Another advantage is that you’ll avoid owing more money than what the vehicle is actually worth. Remember that your car’s value will depreciate. With short-term car finance, more of your payment goes to the principal, not to the interest. The opposite happens with long-term car financing. 

Of course, you should also be aware of a few disadvantages of getting car finance for a short period. With this arrangement, you’re going to pay a substantial downpayment. If you don’t do this, then you have to be ready to pay high monthly repayments. But if you look at the big picture, you’ll be paying less overall, which is a good thing because you’ll save money with short-term car finance. 

Why Long-term Car Finance is Impractical

With a long-term contract for car finance, you can still enjoy some benefits. For example, you can get a pricier car with lower monthly payments. However, if you look at it closely, you might see more disadvantages than benefits. 

When you choose car finance with a longer contract, you’re going to make monthly payments for a number of years. Imagine having to pay for the car every month for 5 to 7 years. That’s a long time to wait before you can pay everything off. And by the time you’re done paying, the value of the car is much lower so its resale value will also be lower if you plan on selling it. 

Another disadvantage is that you will pay more interest because you’re borrowing money for a longer period. The interest rates for longer car financing is also higher, so this is something you need to think about before you choose your contract term length. 

Lastly, the payments you’ll make for the car will be applied to the interest and not the principal. With this, it means that you will have little equity in the car. The vehicle will depreciate faster than the equity you get to build. That’s why longer car finance contract terms are not very practical options. 

How to Get Better Car Finance Rates?

There are several things you can do so that you can choose a shorter car finance contract term. For example, you can improve your credit score so you can get better deals. When we talk about better deals, this means being offered car financing at lower interest rates. This can save you a lot of money. So, if you can spend time working on your credit score, it would definitely help you find lenders with lower rates for car finance. 

The second thing you can do is to spend as much time as you can looking and researching different car finance companies. Don’t settle for the first one that you see. Find out each lender’s interest rates and APRs so you’ll know how much it would cost you to borrow from them. Most lenders have websites and there are car finance calculators available on their sites. Be sure to use them so that you can have an idea of the monthly repayment amounts.

Another step you can take is to brush up on your negotiating skills. If you have an excellent credit score and an awesome credit record, you should definitely negotiate for a better price. Don’t be intimidated or be daunted. What’s the worst that could happen? The lender might say no but what if they say yes? It’s worth trying! So, if you already have a shortlist of car finance companies, try to negotiate. You just might score a better deal. 


Applying for car finance is easy, however, there are several factors that lenders consider when they’re assessing your application. Your credit score and history matter the most. Along with that, so do your income, financial situation, and how you handle your finances, among others. 

How much you can borrow will depend on those factors. A £6,000 car finance for 3 years is possible since it’s not a very big amount and 3 years is actually still considered short-term. If you want to make the monthly repayment amount more affordable, be sure to pay a deposit. About 10% of the car’s value is a good deposit already but if you can pay more, the better. 

If you want to check how much you can get for your car finance, be sure to use Carmoola’s car finance calculator. You can adjust the different factors there and see how much you need to pay every month. While it won’t be the exact amount, it’s good to have an estimate so you can budget your funds accordingly. 

For more car finance articles, check out the Carmoola blog regularly!