Auto Loan Calculator United Kingdom — 2025-26
Calculate your monthly car loan payment and total interest cost. For United Kingdom. Uses current 2025-26 data.
£
The total price of the vehicle
£
Amount you pay upfront
Common questions — United Kingdom
What's a good interest rate for a car loan?
It depends on your credit score and country. In India, rates are 7%–15%. In the US, 5%–10% for good credit. Always compare at least 3 lenders before accepting.
Should I put more money down?
Yes, generally. A larger down payment reduces your loan amount, cuts your monthly payment, and means you pay less interest overall. It also reduces the risk of being "underwater" (owing more than the car is worth).
How long should my car loan be?
Shorter is better for your wallet. A 3-year loan will have a higher monthly payment than a 5-year loan, but you'll pay much less in total interest. Avoid 7-year car loans — by the end, you're often paying for a car worth less than you owe.
Does a car loan affect my credit score?
Yes. Taking a loan initially dips your score slightly. Making consistent on-time payments improves it over time. Missing payments damages it significantly.
Should I lease or buy?
Leasing has lower monthly payments but you own nothing at the end. Buying costs more monthly but you own the asset. If you drive a lot or want to keep the car long-term, buying usually wins financially.