When it comes to buying a used car on finance, you want to be sure you can afford the payments. You need to know how much you can afford to pay back each month in order to work out how much you can afford to borrow for your car finance, and over how long of a borrowing period. Financial experts say that you should follow two simple rules to calculate how much you can afford to pay for car finance: Don't spend more than 10% of your take-home pay on a car finance paymentThe total expenses of your car shouldn't be more than 20% of your take-home pay On the Carbase website, when you find a used car or used van you're interested in, you can use our finance calculator to input the vehicle price, how long you want your repayment term to be and your credit rating to retrieve an example finance quote. You can then use this to amend the details to work out what value car and payment period would work best for you. Free Finance Check >Calculating the used car finance amount you can afford will also depend on other factors including: Your credit scoreThe standard of your credit score will determine the annual percentage rate (APR) you get on your finance agreement. This rate is the amount you pay on top of the purchase price for the car finance, so the lower the interest rate the better. The loan termThe longer you pay off the loan, the smaller your monthly repayment. However, over the long term, you will pay more in interest. How much money you put downWhen you buy a used car, paying a larger deposit can reduce your monthly payments. You could even trade in your old vehicle to reduce the total of your loan. At Carbase, not only do we offer part exchange, we can also buy your vehicle for a competitive price. Get an expert valuation now with our online valuation tool.Take a look at our handy infographic to buying a used car on finance for a step by step guide.Choosing your budget for car financeWhen it comes to choosing your car finance budget, take the two rules above into consideration, and really think about your financial situation. There is no point in buying a car and feeling like the monthly payments are stopping you from enjoying your life. The repayments need to be manageable and comfortable. Make sure to check your credit score to receive the best advice possible when it comes to applying for car finance. Although no one can guarantee finance, it is still possible to gain affordable finance if your credit score isn't excellent. Here at Carbase, we can help you find car finance and provide part exchange valuations for your current car when buying with us. We specialise in Hire Purchase Finance (HP) which offers a fixed interest rate and gives you the option to change the deposit and term to find a monthly payment that suits your lifestyle. We also offer Personal Contract Purchase (PCP) , which can offer benefits to those looking at used vehicles for reduced monthly payments, with the option to keep the car by paying a balloon payment, returning the vehicle or part exchanging it for a new one.For more information, read our guide: HP vs PCP - Which Type of Car Finance is Best?If you would like to find out more about Carbase finance options, please don't hesitate to get in touch. How much money you put down When you buy a used car, paying a larger deposit can reduce your monthly payments. You could even trade in your old vehicle to reduce the total of your loan. At Carbase, not only do we offer part exchange, we can also buy your vehicle for a competitive price. Get an expert valuation now with our online valuation tool. Sub-prime finance is not guaranteed and may cost more than finance provided by a prime lender. We will try to obtain finance for you but there is no guarantee. It may be from a sub-prime lender, and if so, the cost of finance may likely be at a higher rate than prime lenders offer.