Auto Loan Calculator
Car financing works very differently around the world. The US uses standard loans; the UK favours HP and PCP agreements; Canada allows up to 7-year terms. Select your country for accurate defaults.
Monthly payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1]. On a $30,000 loan at 7.1% APR over 60 months: monthly = $594, total interest ≈ $5,640. UK PCP deals are cheaper per month but leave a large "balloon" payment at the end. Canada allows 84-month loans — lower monthly but you pay far more interest overall.
How Car Financing Differs by Country
🇺🇸 United States
US auto loans are straightforward: you borrow money, own the car from day one, and repay in equal monthly installments. The average term is 60 months (5 years), with 72 and 84-month loans growing in popularity. Key points:
- Most lenders offer rates from 4–20% APR depending on credit score
- FICO score heavily influences your rate
- Dealer financing vs. bank/credit union often varies by 1–3%
🇬🇧 United Kingdom
The UK has two dominant car finance products — HP and PCP — plus personal contract hire (leasing). These differ fundamentally from a standard US loan:
- HP (Hire Purchase): Fixed payments, you own the car at the end. Similar to a US loan but the lender retains ownership during the term.
- PCP (Personal Contract Purchase): Lower monthly payments because you only pay for the depreciation, not the full value. A large balloon payment is due at end if you want to keep the car.
- Consumer Credit Act protection applies to all agreements under £25,000
🇨🇦 Canada
Canadian auto loans can extend up to 84 months (7 years), longer than the US norm. This lowers monthly payments but significantly increases total interest cost. Rates are influenced by the Bank of Canada base rate.
🇦🇺 Australia
Australians can choose between secured car loans (lower rates, car as collateral) and unsecured personal loans (higher rates, more flexibility). Typical terms are 3–7 years. Comparison rate disclosure is required by ASIC.
| Feature | 🇺🇸 US | 🇬🇧 UK | 🇨🇦 Canada | 🇦🇺 Australia |
|---|---|---|---|---|
| Avg new car rate | ~7.1% | ~8.9% HP | ~8.5% | ~7.5% |
| Typical term | 60 months | 48 months | 60 months | 60 months |
| Max term | 84 months | 60 months | 84 months | 84 months |
| Balloon payment option | Rare | Yes (PCP) | Rare | Yes |
| Own car during loan | Yes | No (HP/PCP) | Yes | Yes (secured) |
Frequently Asked Questions
Should I use dealer financing or get a bank loan?
Dealer financing is convenient but often carries higher rates. Banks and credit unions typically offer lower APRs, especially for members. Always get pre-approved before visiting a dealer — it gives you negotiating power and means you know your true rate.
What credit score do I need for a good auto loan rate?
In the US, a FICO score above 720 typically qualifies for the best rates (under 7%). Scores 650–720 see rates of 8–12%. Below 620 (subprime) can mean 15–25%+ APR. The UK uses Experian, Equifax and TransUnion scores — a "good" rating generally qualifies for competitive HP/PCP rates.