Frequently Asked Questions

This is down to your current personal finances. It may be helpful not only to compare vehicle finance options and how much your monthly repayments will be, but to also think about all the additional expenses that come with owning a car. For example, fuel, insurance, maintenance and road taxes. Once you have a monthly total for all these costs, you will know how much you can afford to pay back and the loan amount you will need.

Sometimes it's best to be conservative and borrow less. Give yourself a buffer just in case things go wrong. Remember that your car is at risk if you fail to pay back your car lender.

If you can get a credit card with a high enough limit, then a credit card could be an option when considering buying a car. However, you should always check with the dealer you intend to buy your car with a credit card, and this will be an acceptable form of payment.

Remember that the interest rates on a credit card will likely be higher than a car loan. If you plan to use a credit card with an interest-free period, make sure that you can pay off the balance before the interest-free period ends. Before taking on debt, take some time to research options available and evaluate your finances to make sure you can take on the additional costs.

If you haven't yet taken out the loan, there are several ways to lower your car loan repayments. The first is to borrow less - either by putting more of your own money towards the purchase as an initial outlay or by choosing a cheaper car. You could also discuss with your lender about paying back the car loan over a more extended period to reduce monthly repayment amounts (although this will likely result in you paying more for your loan over time).

If you have already taken out the loan, it is good to discuss any changes to your requirements with your lender to understand what is possible. This could include making a lump repayment in the future towards the balance of your loan to reduce the amount owed. However, whether you can do this depends on the terms and conditions of your loan and the lender's policies. Thus it's good to think about possible changes you may want later on and check with your lender before applying or accepting a loan that these will be possible.

This will depend entirely on the terms of your loan and your lender's policies. If this is something you would like to have the option to do, speak to your lender before agreeing to take out a loan to understand what is possible and there are no negative consequences or costs to you.

Missing repayments on a secured loan can put your possessions at risk and have serious consequences. Late payments will also affect your credit score and be marked on your credit file.

If you have trouble making repayments, speak to your lender to see if they can help. Do this early and before failing your repayments. If you are still struggling and need help, you can contact Citizens Advice, Step Change, and Money Helper.