Car finance calculator

Good credit
Bad credit
Amount to borrow:
To repay over:
5 Years
Car finance rate XX% APR
Cost of credit £ XXX
Total repayment £ XX,XX.XX
48 monthly payments of
£ 245 /mo

Representative example - Borrowing £5,500 over 4 years with a representative APR of 19.8%, and a deposit of £0, the amount payable would be £162 per month, with a total cost of credit of £2,282 and a total amount payable of £7,782.

Why Carplus?

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You’ll get only best deals from our car finance and car warranty providers. No hidden fees or charges. No small print.

No impact to your credit

Getting a car finance quote with Carplus will not affect your credit score. Check your eligibility for free.

Our best rate is 5.9% APR

We provide best deals on car loans from UK’s top lenders. No fees. No deposit. No paperwork.

Fair decisions

We know you’re more than a scent score, so we look at your overall situation when searching for the best deal.

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Compare car finance from 20+ trusted providers without affecting your credit score

What is a car finance loan?

A car finance loan is a loan that allows you to purchase a car of your choice. Repayments are typically spread across a fixed period of time, which includes additional interest and, in some cases, extra charges and fees.

What types of car finance loan are there?

There are three main types of car finance loan available to customers:

  • Personal loan: This involves taking out an unsecured personal loan and repaying monthly instalments over a fixed period. Not only can you purchase the vehicle upfront, but as the owner you can sell it whenever you need.
  • Hire purchase: Hiring a vehicle from a car finance company requires you to put down a deposit of around 10% of the full loan amount. You then pay monthly instalments for the duration of the agreed contract. The larger the deposit paid, the lower the instalments will be.
  • Personal contract purchase (PCP): Taking up this option works in a similar way to hire purchase, including monthly payments and an upfront deposit. This may be a more cost-effective option as you are paying off the depreciation of the car at the end of the contract, rather than the cost of a brand new vehicle. You then have the option of paying off the remaining value and holding onto the car, returning the car, or starting another PCP contract on a brand new car.

Not sure what finance is right for you?

If you’re not sure which finance option is right for you, we’ve put together a helpful table below to make things easier. This explains the features of each option explained above, allowing you to make a more informed decision that suits your circumstances.

Hire purchase
Contract Purchase
Requires initial deposit
Usually requires deposit
Usually requires deposit
You own the car outright
Car is yours at the end of the agreement
Fixed monthly payments
Optional balloon (final) payment
Excess mileage charges
Secured against an asset (eg car)

Who can get a car finance loan?

In order to apply for a car finance loan through Carplus you must:

  • Be aged 18-75 years old
  • Have been a UK resident for at least 12 months
  • Receive an income of £1,000 or above each month

If you currently have a provisional drivers licence, we may also be able to help you secure a car finance loan through one of our lenders.

How much will a car finance loan cost?

Before committing to a car finance loan you will want to ensure you are able to afford your preferred choice of car. The price you pay will vary depending on the:

  • Loan type: Choosing between an unsecured loan, PCP, or hire purchase agreement will have a direct impact on how much you pay each month, and overall.
  • Credit history: The better your credit history, the more favourable the interest rate on the loan will be. The opposite is also true, as lenders want to ensure you can afford to repay the loan without defaulting.
  • Deposit you put down: Putting down a larger deposit will usually mean your monthly instalments will be lower as a result.
  • Interest you take out: The annual percentage rate (APR) will vary depending on your individual circumstances. While a representative APR will be advertised, there is no guarantee you will be offered this figure for your loan. Carplus APR rates start at 5.9%.
  • Fees: There are usually additional fees attached to a car finance loan, such as purchasing fees, late or early repayment charges and costs related to mileage and damage and repairs. Make sure you are aware of these in full before signing the contract.

How do I apply for a car finance loan?

When applying for a car finance loan you will be asked to provide contact and address details, along with information about your employment, income and outgoings. You will also need to tell the lender how much you would like to borrow, your preferred repayment terms and the car you would like to buy.

The vast majority of providers allow you to make an application on their website. However, if you prefer the personal touch, you can visit their showroom, or contact them via email or phone.

Things to consider before applying for a car finance loan

Take into consideration the following before applying for a car finance loan to ensure you increase your chances of success:

  • Your budget: Look at your monthly finances to see how much you can afford to pay. This means analysing income and expenditure and ensuring you have a good amount of spare cash left over after taking a car finance loan into consideration.
  • Car choice: Think about what you need the car for and how it will be used. This will affect wear and tear, mileage and whether or not you are planning on keeping the car beyond the end of the contract.
  • Insurance cost: You will need to be fully insured before driving the car on UK roads. Some contracts also require you to have fully comprehensive insurance to cover all eventualities. Shop around to get an idea of how much extra this will add to your overall costs.
  • Warranty: Breakdown cover or repair and maintenance costs also have to be factored in. Some packages include these as standard, while others provide these as add-ons. Ask how much they cost and what they cover.
  • Gap insurance: Guaranteed Asset Protection (GAP) insurance offers extra financial security in the event of the car being written off while under contract. It will cover the difference in cost between the lender’s valuation of the car and the current market value, potentially saving you thousands of pounds.

What you'll need to apply

To apply for a car finance loan with Carplus you will need to provide your:

  • Annual income
  • Full home address
  • Contact number and email address

Will I qualify for car finance?

If you meet the minimum requirements needed to apply, you will have to wait until the credit checks are completed by the lender before knowing if you qualify for car finance.

Anyone who passes the affordability tests and has a good credit score will be in a better position to qualify for car finance. However, Carplus also provide access to car finance loans for people with poor and bad credit, ensuring everyone has a chance of successfully applying.

Will applying for a car loan affect my credit score?

In order to receive a range of quotes from our panel of lenders, we will run a ‘soft’ credit search, which will not have any impact on your credit score. This information is only seen by Carplus and not by any of our lenders.

If you wish to proceed to the next step of purchasing a product, your credit history can then be seen by the lender you are buying from. They will carry out a ‘hard’ credit check, which will be recorded on your credit file.

For anyone who believes they may struggle to meet the lender’s financial requirements, it may be best to improve your credit rating before making an application, as a failed submission can have a negative effect on your overall credit score.

Why compare car loans with us?

At Carplus we believe in providing an honest and transparent service to all our customers. That’s why once you’ve started your application process we will show you the exact APR for your loan, rather than just the representative figure. Our lender’s representative APR rates start from 5.9%.

It’s all part of ensuring you get the best deal possible and are completely aware of the full costs involved, so there are no last-minute surprises.

Questions? Speak to a real person

Comparing car finance and car warranties is what we do, so you will get through to someone who can help. Call us from Monday to Friday (8am - 8pm) and Saturday to Sunday (9am - 6pm).