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How Much Will My Auto Loan Be

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What Are Average Auto Loan Rates

Should I pay Extra into my car loan – Will I be penalised?

The auto loan rates youre offered depend largely on your credit score. Borrowers with credit scores higher than 660 tend to receive lower interest rates than those who have credit scores below that number.

The table below shows average interest rates for new and used cars, according to Experians Q4 2021 State of the Automotive Finance Market report.

Auto Loan Payment Calculator Results Explained

To use the car loan calculator, enter a few details about the loan, including:

  • Vehicle cost: The amount you want to borrow to buy the car. If you plan to make a down payment or trade-in, subtract that amount from the car’s price to determine the loan amount.
  • Term: The amount of time you have to repay the loan. In general, the longer the term, the lower your monthly payment, but the higher the total interest paid will be. On the other hand, the shorter the term, the higher your monthly payment, and the lower the total interest paid will be.
  • New/Used: Whether the car you want to buy is new or used. If you don’t know the interest rate, this can help determine the rate you’ll get .
  • Interest rate: The cost to borrow the money, expressed as a percentage of the loan.

After you enter the details, the auto loan payment calculator automatically displays the results, including the dollar amounts for the:

  • Total monthly payment: The amount you’ll pay each month for the duration of the loan. Some of each monthly payment goes toward paying down the principal, and part applies to interest.
  • Total principal paid: The total amount of money you’ll borrow to buy the car.
  • Total interest paid: The total amount of interest you’ll have paid over the life of the loan. In general, the longer you take to repay the loan, the more interest you pay overall. Add together the total principal paid and total interest paid to see the total overall cost of the car.

Taking Out A Natwest Car Loan

If you’re thinking about a new or used car, a loan could help you spread the cost of your purchase.

We’ll take your circumstances and loan amount in to account to offer a personalised car loan rate.

It’s easy to apply online. You can get a quote at the start of your application and then decide if you want to take out a loan or not.

You could get your loan funds on the same day if you apply online, are unconditionally accepted and sign your loan documents before 5.45 pm Mon Fri. Sometimes we need to contact you for more information, so it can take a little longer.

To apply for a loan online, you must be 18+ and a UK resident with a NatWest current account .

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Finding A Car You Can Afford

Many automotive sites, such as Kelley Blue Book, Edmunds and AutoTrader, have car finder search tools to show you different models listed by price. But remember to set the bar low. When searching for cars, set your maximum price below the total loan amount you think you can afford. Sales tax and fees can easily add up to an extra few thousand dollars.

About the author:Philip Reed is an automotive expert who writes a syndicated column forNerdWallet that has been carried by USA Today, Yahoo Finance and others. He is the author of 10 books.Read more

How To Get A Car Loan With Bad Credit

How Much will My Monthly Payment Be on a Car Loan?

If your credit report contains some negative information, or your credit score is not as high as you would like, consider taking steps to improve your credit before applying for an auto loan. Improving your credit can boost your chances of qualifying for an auto loan at a good rate and terms. Steps you can take to improve your credit include:

  • Bringing any late payments or collection accounts current.
  • Paying all your bills on time every month.
  • Paying down existing debt to improve your , which compares the total amount of credit you have available with how much of it youre actually using.

If your credit reports and scores are poor, and you cant afford to wait to get a car, it may still be possible to get a car loan. However, be aware your loan will likely have a higher interest rate than whats offered to people with good credit scores.

You can offset the impact of poor credit by saving up for a bigger down payment. The down payment will reduce the amount you have to borrowand the amount of interest youll pay over the life of the loan. Plus, lenders may view your down payment as evidence you know how to manage money and will likely repay their loan.

You can also ask someone with good credit to cosign for a car loan. When you have a cosigner, that persons good credit will influence the interest rate and terms the lender offers. However, your cosigner will share responsibility for repaying the loan, so its important to ensure you make all payments in a timely manner.

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Why Get A Car Loan With Us

  • Borrow from £1,000 to £25,000, or up to £50,000 for HSBC Premier account holders

    Always know what you’ll have to pay with fixed monthly repayments spread over 1 to 5 years for loans of £15,000 or less, or over 1 to 8 years for loans over £15,000.

  • Get a quick decision

    If you’re an HSBC current account holder you can get an instant credit decision, while non-HSBC current account customers should get a credit decision in 2 to 5 working days.

  • Quick access to funds

    Existing HSBC current account customers could receive the money instantly once your application has been approved and the loan agreement has been signed. Non-HSBC current account customers could receive the money into a nominated account 3 working days after the signed loan agreement is received.

  • Make overpayments free of charge

    Manage your finances the way you want with the flexibility to overpay, which could reduce the amount of interest you have to pay.

Decide How You Want To Sell Your Car

There are different ways to sell a car with an outstanding loan. You can:

  • Sell your car in a private transaction

  • Sell your car to a used car dealer

  • Trade in your car for a new one at a new car dealership

Whichever way you decide to sell your car, note that some financial institutions may want the payoff amount before you sell the car.

If youre able to pay off your outstanding loan and get a clear title to the car before you sell it, the process could be easier. This would be beneficial especially if you decide to do a private sale.

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Why Compare Car Finance With Confusedcom

Were the only site that shows exact APR on your first comparison! Weve teamed up with trusted finance companies to provide you with tailored quotes, just like we do for car insurance. This makes it easy to compare the best finance options available to you.

After youve entered your details, well show you exactly what youll pay each month, providing your loan terms dont change.

If youd like to know more about the different types, you can find more information on our car finance page. Weve also covered the different options available in more detail in our guide to car finance or if you want to know more in general, our car finance guides hub may be able to help.

If you decide to apply for car finance through, youll need:

  • your current UK address

Understanding Your Car Payment

How Much Car Can You Really Afford? (Car Loan Basics)

Now you have an estimated auto payment youll have a better sense of what kind of new or used vehicle loan could work for you. Is your payment too high? Do you have more room for an auto payment in your budget? Adjust the terms to see how the figure changes.

While the monthly amount is important, also think carefully about the total cost of the purchase and how much you would pay in total interest charges.

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How Do I Read My Auto Loan Statement

Your auto loan statement provides timely information about your account, such as your payment amount due and payment activity. Find out more about how to read your statement .

You can access up to 12 months of electronic statements by enrolling online. Sign on, select your auto loan from Account Summary, and then Enroll in eStatements.

How Much Will My Car Loan Be Per Month

I want to get a car loan. Before I do, I need to know how much I can expect to pay each month. Whatâs the easiest way to figure out my monthly loan payments?

  • The cost of your vehicle
  • The length of your loan
  • The interest rate
  • Whether the car is new or used
  • Your down payment
  • Your credit score


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How Do I Defer A Payment

How Much Will My [Mortgage, Car, Student Loan] Payment Be

A payment deferment pushes out your due date and extends the loan maturity date.

ExampleIf your payment due date is scheduled for March 15, 2022, and you were approved for a one-month deferment, your next payment date would be April 15, 2022. If your maturity date is January 15, 2023, and you are granted a one-month deferment, your maturity date will be February 15, 2023.

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What You Can’t Use Your Loan For

We don’t offer Personal Loans for a number of purposes including:

  • the purchase of property or land including holiday homes and apartments
  • purchasing a joint stake in a property or buying out a joint owner
  • mortgage deposit
  • gifting funds to third parties to support the purchase of a property, including mortgage deposit, stamp duty and solicitors fees
  • gambling
  • spread your repayments over 1 to 5 years for Personal Loans of £15,000 and less
  • spread your repayments over 1 to 8 years for Personal Loans of over £15,000
  • the first repayment is due 1 month from drawdown, or 3 months from drawdown if you take a repayment holiday
  • repayments will be taken monthly from your nominated current account

Debt consolidation considerations

  • if you’re using any part of this loan to pay off or reduce existing loans/debts , it’s important to consider not just the interest rate and monthly repayments, but also the term of this loan compared to the remaining term of your existing loans/debts
  • spreading your payments over a longer term means you could end up paying more overall than under your existing arrangements, even if the interest rate on this new loan is less than the rates you’re currently paying
  • you should also consider if any early repayment charges apply and if this form of borrowing is appropriate for your circumstances


  • at the beginning of the loan we work out the interest you’ll pay over the whole period of your loan and add this to your loan balance

Early repayments

The Three Rules Of Car Financing

The rule of thumb when it comes to smart auto financing is the 20/4/10 ratio.

According to this rule, when buying a car, you should put down at least 20%, you should finance the car for no more than 4 years, and you should keep your monthly car payment at or below 10% of your gross monthly income.

Why is the 20/4/10 ratio smart? Heres why:

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Ways To Lower Insurance Costs

No matter if the buyer purchases new or used, the car will need to be insured. Unless the purchaser pays cash for the vehicle, they will be required to carry a full coverage policy in order to protect the lenders interests in the case of a collision, weather damage or if the vehicle is stolen or vandalized. If the buyer purchases with cash and no portion of the purchase price is financed, the new owner may carry liability only insurance. In most states, at least a liability policy is required. However, depending on the vehicle age, buyers who pay in full upfront may still want to consider full coverage. In at fault” states, liability covers only the other driver and vehicle in case of an accident. In no fault states, liability will cover only the minimum required for the policy for property damage and bodily injury. If the car is five years old or newer, the driver probably needs to carry full coverage insurance to make sure they are able to cover the cost of repairs in case of an accident or damage.

How To Calculate Car Finance Repayments

Pay off my Car Loan Early| 5 Tips to Paying off Car Loan Fast…Paid off $20,000 in 12 Months

Depending on how much you want to borrow, it will be difficult to know how much your car finance payments will be, so thats definitely a good first step! Although, without knowing how to calculate car loan interest, you may also find it tricky. Usually on car finance agreements, interest is calculated on a flat annual rate, but your interest rate will depend on your circumstances and affordability. Your monthly payments will also depend on whether you take your loan for a longer or shorter period of time. The most common lengths for car finance agreements are: 12 months, 24 months, 36 months, 48 months and 60 months. Some lenders offer a longer term than this, sometimes up to 84 months, but you have to consider if youd want to keep a car for this long or not!

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Put At Least 20% Down

According to Edmunds, a new car loses 9% of its value the second you drive it off the lot. By the end of the first year, its lost 19%. If you put less than 20% down, you risk becoming underwater on your car loan meaning you owe more on the car than its worth almost immediately.

If you need to sell the car before the loans paid off, youll have to come up with the difference between the cars value and the balance on your car loan. Ditto if you get into an accident and the car gets totaled.

Make Sure You Have Good Credit

Having a good credit score is essential if you want to get approved for an auto loan with decent terms. In general, a good FICO® Score ranges from 670 to 739, and a higher score is even better.

Auto lenders typically use the FICO 8 or FICO Auto Score models to determine your score. Keep in mind, though, that lenders may have their own rubric for determining what they consider to be good or not. But if your credit score is at least in the good range, youll have a relatively good chance of getting approved.

Also, note that lenders may choose to approve you for a car loan even if you have a less-than-ideal credit score. But they may charge you a higher interest rate or require a cosigner with strong, established credit. Some lenders specialize in working with people who have bad credit scores, but these loans can be expensive, so its a good idea to work on improving your score before you apply.

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I Bought An Aftermarket Product And Can’t Remember What It Covers Where Can I Find This Information

The contract for the aftermarket product will provide the details of the coverage, including items such as the cost, what is covered and excluded, and how long the coverage lasts . If you have questions about the coverage, contact the dealership or the coverage provider their contact information is listed on the contract. To request a copy of the contract, contact the dealership or call us.

Getting Preapproved For A Car Loan

How Much Will My Car Loan Payment Be?

If you decide to get a loan from a bank or credit union, you can get preapproved. Getting preapproval for a car loan involves completing a preliminary application with a lender who will review your credit and other financial information. They’ll let you know the size of the loan they’ll finance and the interest rate they’re likely to offer.

Preapproval can help you find the best interest rate, make it easier to know how much you can spend, and give you bargaining power with a dealership. It doesn’t, however, obligate you or the lender to actually enter into a loan agreement.

Remember to complete your preapproval and actual loan application within a short time period to minimize the possible impact of hard inquiries on your credit score.

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There’s More To A Loan Than A Monthly Payment

That same wise shopper will look not only at the interest rate but also the length of the loan. The longer you stretch out the payments, the more expensive the loan will be. Let’s take that same $20,000 loan above at 5% at 5 years and see how much we can save by paying it off in 3 years. So, $20,000 at 5% for 36 months will cost $21,579.05 saving you $1,066.43. Using the calculator above you will see that the monthly payment for the 5 year loan is $377.42 and the monthly payment for the 3 year loan is $599.42. If you can easily handle the higher payment the savings are well worth it.

If your credit drastically improves & your initial loan was at a higher interest rate, it may be worth looking into refinancing at a lower rate.

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