How Much Can I Borrow for a Car?
When considering credit applicants, finance lenders are looking for evidence of two key things: stability and affordability. The more you can demonstrate these, the more likely you'll be offered credit.
When it comes to car finance, everyone's situation is just that little bit different from the next person.
As such, the amount you can borrow for financing a car depends on your personal circumstances, including your age, income, credit profile, and the type of finance you’re applying for.
Find out how much you could borrow without affecting your credit score.
What Affects How Much I Can Borrow?
With stability and affordability in mind, the following factors usually play a central role in your borrowing potential:
Annual Income: This includes your salary and any additional income. A higher, steady income shows both stability and affordability.
Monthly Commitments: This covers your regular bills, rent or mortgage, subscriptions, and any existing debts. The more disposable income you have left over after expenses, the more you’re likely to borrow.
Term Length: The duration of your finance agreement affects borrowing. A longer term can mean more manageable monthly payments, which may increase your borrowing limit, but also result in more interest paid overall.
Credit History: Your credit record shows how reliably you’ve handled credit in the past. A strong credit score usually means access to higher borrowing limits and better interest rates. Poor credit doesn’t always mean rejection, but it may limit how much you can borrow and on what terms.
Comparing Finance Options
Dealer finance, such as HP and PCP, is often quick and convenient, especially if you have a part-exchange. Personal loans from banks may offer competitive interest rates, particularly for those with good credit. Leasing, meanwhile, suits those who want lower monthly payments and a new car every few years. Each has pros and cons, depending on your needs.
Choosing the Right Term
Shorter terms (e.g. 24–36 months) reduce the total amount of interest you pay but come with higher monthly payments. Longer terms (e.g. 48–60 months) lower your monthly payments, but cost more overall. It's about finding the right balance for your budget.
Additional Charges
Always check for any extra costs that might come with your loan. These can include arrangement fees, late payment charges, or early settlement fees. With PCP finance, you may also face excess mileage or wear-and-tear charges at the end of the agreement.
Getting Personalised Advice
Every finance application is different. Our team is here to help you make the right choice based on your budget, needs and credit profile. If you’ve got questions or would like tailored guidance, our finance specialists are ready to assist.
Free Eligibility Check
Take the guesswork out of car finance. Use our soft search eligibility checker to see how much you could borrow, with no impact on your credit score.
Representative Example
This represents an average of the deals that our customers receive on other vehicles
We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders will pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions. Offers available to everyone over the age of 18, subject to credit approval.
