Why is using a car finance calculator important? | AA Cars

Undated file photo of UK five pound, ten pound, twenty pound and fifty pound notes with one pound coins. About one in six people think they have an unhealthy relationship with money, a survey has found.

Getting a car loan is a useful way of helping you buy a car if you can’t afford to pay for it outright. But if you don’t check if you can afford it first, it can be a big financial risk.

That’s where our car finance calculator comes in handy. Use it to check how much you can borrow, and how long it’ll take to pay back.

Here’s how it works.

What is the car finance calculator?

It’s a simple way of seeing how much you can afford to borrow to buy your next car. By plumbing in the numbers, you’ll get a rough idea how much you can likely borrow.

Put in the amount you’d like to borrow, then adjust the length of time you want to spend paying back the loan. 

You’ll also need to give a rough indication of your credit score by choosing a rating of bad, poor, fair, good, or excellent. (Just open the information icon in the calculator to see these explained in more detail). This’ll give you a rate of interest, which affects the monthly payment. 

Why should I use it?

If you’re deciding whether to get a loan out for your next car, using a calculator can give you a better idea if it’s right for you. And by seeing the additional interest rates up front, you can see whether the loan is worth the extra expense.

It’ll also help you decide whether to consider other finance options, which may be cheaper every month, instead.

How can I find out my credit score?

You can find free credit score checks online, The higher your credit score, the better.

Or, give a rough estimate by using our quick guide in the car finance calculator instead.

Is there anything else I need to check?

If you’re not sure whether your loan application is likely to be accepted, use our eligibility checker. It carries out an affordability check, without affecting your credit score.

And if you have any questions, call us on 01246 458809 – we’re open Monday to Friday 9am to 7pm, and Saturday and Sunday 10am to 4pm.

Or, email us at [email protected].  


About Author