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Which factors decide your car loan cost?

20 Sep 2021 0 Comments

 

The two factors on which the amount you will need to pay your car loan depends :

Interest: An interest rate or APR is applied to your loan amount based on your credit score. When you buy a car on finance, you will be required to pay the loan amount along with interest. If you have debt issues, a higher interest rate will be applied. This could make the car even more expensive.

Loan’s term: Another major factor on which the car loan cost depends is the loan’s term or length—the longer your loan term, the shorter your monthly instalments. And you will also end up paying more interest for a longer period.

Use our car finance calculator to find how much your car loan costs.