Our calculator uses a number of variables to work out your result including the amount you’d like to spend on your car, the length of the agreement and the APR applied to the car finance. It uses these figures to help illustrate an example of what monthly repayments on this loan example might be.

Each lender has specific criteria that looks at your individual financial circumstances and calculates the interest rate based on these details. Car finance rates usually range between 6% and 30% APR. Car loan rates are subject to change

Car finance lenders determine the APR they can offer you, based on your individual credit profile. A good APR for one person, may be a terrible APR for another! To find out what APR you would get, why not answer a few quick questions on Carmoola? We only run a soft credit search when you do this, so there's no impact on your credit score just to find out.

Yes! Here's an example to help you understand how it works. Let's say you're buying a car that costs £10,000. Some lenders such as Carmoola will be able to help you borrow the whole £10,000 if you want to. However, if you decide to add a small deposit, let's say £2,000, then you'd only need to borrow £8,000 to buy the car. Borrowing less, means your monthly payments will be less, and you'll pay less interest overall.

When you take out a Hire Purchase car finance agreement, your APR is set at the beginning and is fixed throughout the term you choose.