At My Car Credit, we understand how confusing car finance repayments can be. You might have found the perfect next set of wheels. However, you may also find yourself getting lost in a sea of paperwork and admin. Even worse, you may be getting tripped up over hidden costs and surprise terms and conditions.

But don’t panic – this article is designed to clear that confusion! What’s more, we’ll lay out what you can expect from different car finance repayment options, as well as the potential benefits and pitfalls of each. That way, you go into your search knowing what meets your requirements and how much you can afford. This means you can find a deal that suits you without wasting too much time or energy.

Don’t forget too, that once you’ve decided what kind of terms best match your needs, you can use our online car payment calculator to get a super speedy, straightforward quote from us.

Car finance repayments – what’s right for me?

First things first, and before you begin looking at repayment terms, it’s important to establish how much car finance you’d qualify for. Once you’ve worked this out, you’ll have a better idea of what to look out for when applying for car finance. This will allow you to tailor your search accordingly. We’ve also outlined what factors affect the cost of car finance too, in case you’re confused about that.

Repayment terms – what’s the difference?

Your car finance repayments will have a significant impact on what type of finance scheme best suits you. Below, we lay out the pros and cons of different repayment terms.

Short term loans

Typically, a short loan repayment term will tend to be between 18 to 24 months. Shorter repayment terms mean that you pay higher monthly repayments as you have less time to spread the cost. However, you’ll also pay less interest overall because you’re repaying your loan much quicker, slashing the amount of borrowing time.

The vehicle will also have a higher resale value once it’s been paid off. This is because a newer car is more attractive for re-sale than an older model, which is another factor to keep in mind.

Short repayment terms are great if you have a large monthly income and are financially stable. The upside is that you spread the car cost, slash interest, and can use your hard-earned cash on something else. Just be aware that you’ll likely be asked to prove that you have the income to fund a short-term loan. In the main, payslips and bank statements are the most obvious way to back this up.


+  You pay off your owed balance quicker

+  Less interest payment overall

+  The vehicle will have a higher resale value once paid off

  You’re paying higher monthly repayments

  A potentially higher upfront payment

Long Term Loans

Long term repayments are the more traditional car finance package offered. You’ll usually spread the cost of your car over 48 or 60 months – 4 or 5 years in other words. This ensures that the repayments are more manageable than you’ll find in a short-term loan. What’s more, you may even be able to purchase a more expensive car, as you’re paying less upfront.

However, you’ll also end up owing money for a longer period of time. Plus, you’ll be paying interest for longer, which means the overall cost will be higher. This is because the amount you’re charged is based on the interest rate established at the start of the agreement, so you’re paying more to the provider with less value return on the vehicle.

Equally, a longer repayment period means that the value of your car will depreciate more. This is something to consider if you’re looking to sell or return the car at the end of the repayment term.


+  Monthly repayments are more affordable

+  You might be able to purchase a more expensive car

 Lower resale value on the vehicle

 Interest payments are significantly higher

What’s the best option for car finance repayments?

It’s really important to go into your search for car finance knowing what you can afford. In addition, try to establish what suits your particular requirements – there isn’t a one-size-fits-all approach. If you don’t think you can front the monthly payments of a short-term repayment scheme, the long-term option is best for you. Equally, if you’re keen to trade in for a new vehicle after only a couple of years, the short-term option will be most appealing.

Using our car finance repayment calculator will help you to get a better idea of the best option for you. We design our car finance to be as flexible and user-friendly as possible. What’s more, we’ll give you a quote within minutes. We’ll only ask you for a few details, and our soft search check won’t affect your credit rating.

Talk to one of our friendly team today, and start your search for the best car finance for you.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!