Car Loan
A car loan is money borrowed to buy a vehicle, repaid with interest in fixed instalments over an agreed period.
What is Car Loan?
Loans can come from banks, credit providers or the dealer’s finance partner. The total cost depends on the interest rate, the term and any fees. With some loans the car stays the lender’s security until the debt is paid. Paying off a loan early can save interest, but some contracts charge an early repayment fee.
How it works
The lender pays for the car and you repay the capital plus interest in monthly instalments.
Why it matters for your car
Compare the total amount payable, not just the monthly payment. Longer terms lower the instalment but usually raise the total interest.
Other terms
- Asymmetric Tyres
- Brake Caliper
- Brake Fluid DOT Ratings
- CAN Bus
- Central Locking
- Creep Mode (EV Creep Setting)
- Double-Declutching
- Flat-Plane Crankshaft
- Glow Plug Warning Light (Preheat Light)
- Labour Time (Flat-rate Time)
- LFP Battery (Lithium Iron Phosphate)
- Manual Transmission (Manual Gearbox)
- Paint Code
- Piston Slap
- Post-crash Safety Inspection
- Power Steering Fluid
- Repair Estimate (Quote)
- Seasonal Tyre Change
- Towing An Electric Car
- Winter Tyre