When buying a car on finance, the total amount you repay is almost always higher than the vehicle's cash price because interest and fees are added across the agreement. For example, a £10,000 car on a 60-month agreement at a representative APR may cost several thousand pounds more in total once interest, the admin fee, and the Option to Purchase Fee are included. The longer your agreement term, the more interest typically accrues. Your APR, loan term, and any deposit all directly influence the total cost. Always check the total amount payable shown on your agreement. You can also use our finance calculator to compare example borrowing amounts and terms.
Your loan term directly affects both your monthly payments and the total cost of borrowing. A longer term, such as 60 or 84 months, spreads the cost over more payments, lowering the monthly amount but increasing the total interest you pay across the agreement. A shorter term, such as 24 or 36 months, means higher monthly payments but a lower overall cost. AutoMoney Trust offers terms from 24 to 84 months, so you can balance monthly affordability against total cost. Use our finance calculator to compare different term lengths before applying.
A fixed rate keeps your interest rate and monthly payments the same throughout your agreement, giving you predictable costs from start to finish. A variable rate can rise or fall during the term, usually tracking the Bank of England base rate or the lender's standard variable rate, which means your payments can go up or down. AutoMoney Trust offers fixed interest rates only, so you know exactly what you will pay each month. Fixed rates provide certainty but may start slightly higher than introductory variable rates; the trade-off is protection from future rate rises. For more detail, read our guide to What Is Car Finance APR?.
AutoMoney Trust hire purchase agreements include one standard fee: paid alongside your first monthly payment an Option to Purchase Fee of £199, only payable at the end of the agreement if you decide to keep the car. Both fees are detailed in your agreement. Additional charges, such as reminder letter fees or default interest, may apply if payments are missed, full details are listed in our arrears fees and default interest schedule. AutoMoney Trust does not charge early repayment fees if you choose to settle your agreement ahead of schedule.
AutoMoney Trust does not charge early repayment fees, so you can settle early without penalty. Under the Consumer Credit Act 1974, you are also entitled to an interest rebate when you repay ahead of schedule, which reduces the total amount owed compared with continuing the agreement. To settle early, request a settlement figure from us, this is valid for 28 days and represents the full amount needed to close your agreement. Other lenders may apply early settlement charges or different rebate calculations, so always check your agreement before settling. For wider information around selling a financed vehicle, see our guide on Selling a Financed Car.
