Buying a car can be an exciting step, whether you have recently passed your driving test, need a more practical vehicle or are ready to upgrade your current car. But it is also a significant expense, and paying the full purchase price at once may not always suit your budget.

A car loan is a type of personal loan used specifically to help finance the purchase of a vehicle. It allows you to spread the cost of buying a car over a set repayment period, rather than paying the full amount upfront. You borrow an agreed amount and repay it in instalments over time, together with interest and any applicable charges.

Car loans can therefore provide short-term financial flexibility, helping you purchase the vehicle you need without necessarily using a large amount of your savings all at once.

Key takeaways

  • A car loan can spread the cost of buying a vehicle over regular repayments and help you keep some of your savings available for other expenses.
  • Remember to budget for insurance, servicing, fuel and other costs of owning a car.
  • How much you may borrow will depend on your financial circumstances and affordability.
  • APS Bank can discuss your options with you, subject to its lending criteria and final approval.

How does a car loan work?

A car loan allows you to borrow money to help finance the purchase of a vehicle.

With APS Bank, the process starts by discussing what you want to purchase and how much finance you may need. An advisor can then help you explore an appropriate loan amount and repayment term based on your circumstances and affordability.

Once your loan is approved and made available, you repay the amount borrowed over the agreed period. This means you do not necessarily need to cover the entire cost of the car from your available cash when making the purchase.

Why consider a personal loan when buying a car?

One of the main benefits of financing a car through a personal loan is financial flexibility.

Buying a car usually involves more than the price displayed by the seller. You may also need to budget for insurance, registration, servicing, maintenance, fuel and other everyday running costs.

Using a personal loan can help you spread the vehicle purchase cost rather than paying a large lump sum immediately. This may allow you to keep some savings available for other priorities or unexpected expenses.

How much should you borrow for a car?

Before looking for a car loan in Malta, start with your overall budget rather than simply focusing on the maximum amount you would like to borrow.

Consider:

  • your monthly income and regular expenses.
  • existing loans or other financial commitments.
  • how much you can comfortably repay each month.
  • insurance, maintenance and running costs.
  • whether you will still have funds available for unexpected expenses.

Your income, disposable income, existing commitments and credit history may also be considered as part of the Bank’s assessment of your application.

Choosing a car that fits comfortably within your overall finances can help make your new purchase more manageable in the long term.

How do you apply for an APS Personal Loan for a car?

You can submit the form below to book an appointment at an APS Bank branch. During your appointment, the team can explain the application process, the information you may need to provide and the options that may be available to you.

All applications for an APS Personal Loan are subject to the Bank’s lending criteria and final approval.

Ready to explore your car financing options?

Whether you are buying your first car or upgrading your current one, the right financing approach should help you achieve your plans while keeping repayments manageable for your circumstances.

Find out more about the APS Personal Loan and book an appointment with an APS Bank advisor to discuss your options.

FAQs

What is a car loan?

A car loan is finance used to help pay for a vehicle. The amount borrowed is repaid over an agreed period, together with interest and any applicable charges.

Can I use a personal loan to buy a car in Malta?

Yes. A personal loan can be used to finance a vehicle purchase, subject to the lender’s eligibility, affordability and approval requirements.

Can a car loan cover the full cost of a car?

Depending on the product and your circumstances, full financing may be available. The amount offered will depend on factors including your affordability and the lender’s assessment.

Can I use a personal loan to buy a used car?

A personal loan may be used to finance different types of motor vehicles. Discuss the vehicle you intend to purchase with your lender when applying.

What should I consider before taking a car loan?

Consider the monthly repayment, total cost of borrowing, repayment period, existing financial commitments and the ongoing costs of owning your car.

How can I apply for an APS Personal Loan?

You can start by booking an appointment with APS Bank. An advisor can discuss your plans, affordability and the application process with you. Approval will depend on the Bank’s lending criteria and assessment.

Caution! Borrowing money costs money. Approved and issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR 4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on Terms and Conditions – APS Bank.