Blended Finance
Car Loan Fees Explained
Fees materially affect the true cost of a car loan. Comparing headline rates without fees can lead to poor decisions, especially when terms are long.
Common fee types
Different lenders apply different fee structures. Always review the fee schedule together with interest assumptions and repayment frequency.
- Establishment or setup fees at loan start
- Monthly service or account maintenance fees
- Late payment or default administration fees
- Variation fees for contract changes
- Early settlement or break fees in some agreements
How to compare true borrowing cost
Use total repayable projections under the same loan amount, term, and rate assumptions. This normalizes offers and reveals hidden cost differences.
| Cost component | One-off or ongoing | Comparison tip |
|---|---|---|
| Establishment fee | One-off | Check if financed or paid upfront |
| Monthly service fee | Ongoing | Multiply by full term length |
| Early settlement fee | Conditional | Read payout conditions early |
| Late fee policy | Conditional | Understand trigger thresholds |
Next steps
Use this guide as a framework, then compare at least two full offers with the same assumptions before you commit. If you want support, our team can help you match structure, rates, and fees to your profile.