In short - yes! Car finance is a massive industry now, with loads of options to find a new/used car. There are also many different finance packages and monthly payment plans for used cars, and most dealerships are happy to offer these to you. It’s fair to say if you’re looking for a used car on finance then you’ve come to the right place! CarMoney can certainly help.
How do I get a Used Car on Finance?
When it comes to financing a used car, there are 2 main options; Hire Purchase and Personal Contract Purchase. Both consist of an initial deposit and a monthly payment plan and an option to own the car at the end of the deal.
When signing a Hire Purchase agreement, there are 2 elements you need to pay. Firstly, an upfront deposit is usually required, secondly; monthly instalments which cover the whole value of the car. Once you have successfully completed all of the monthly payments required: the car is yours.
How much you pay each month depends on a number of factors:
- Price of the car
- Size of your deposit
- Length of the payment plan
- Financial history
It is important to remember the car will only be yours once you have made your final payment, meaning you will NOT be able to sell your car on finance.
Personal Contract Purchase:
With PCP Car Finance you’ll normally pay a deposit and have monthly payments to be made. However, instead of the monthly payments paying off the value, these payments are contributing to the depreciation of the car’s value. If you wish to keep the car at the end of the contract, you’ll be required to pay a final fee known as a balloon payment.
Because you won’t necessarily own the car once you have completed your monthly payments, a PCP plan will cost less than a Hire Purchase plan on the same car.
Can I Lease a New Car?
When it comes to leasing a car, this is usually associated with new cars, but some dealerships and lenders offer it for used cars too. The amount you pay monthly will be determined by how quickly the lender will think the value will fall.
Used car values are much harder to predict than new cars though, which means the lender could make the monthly payments higher to cover the cost of depreciation.
Can I Finance a Used Car with a Bank Loan?
Bank loans are often used for brand new cars, but they can also be used for used cars as well. The monthly repayments and interest rates will be set by the bank. This can be really useful if your chosen dealership doesn’t offer PCP or HP finance on a particular car or at all.
These can also be used if you don’t have a large deposit you can put down for a car. Another positive is that the car is yours to sell whenever you want, provided you keep paying your loan.
Used Car Finance with CarMoney
We are experts at finding finance for the best rate. Our ninjas are trained in the CarMoney Dojo and prepared to fight to get you the best possible finance package! We have a simple process, all we need from you is a little bit of your time to put in an application and we swoop in to do the rest!
We deal with the lender and dealership to bring all your documents into one handy customer portal. If you have any questions, our ninjas are here to help 7 days a week! So how do you apply?
- Apply for finance securely online (takes 2 mins)
- Tell us about your next car (or we can help you find a new one!)
- Get a decision as quick as 1 hour!
- Sign the documents and collect your new car
We have secured finance for thousands of happy drivers around the UK, and are still growing and going from strength to strength! Let our crack team find you your dream car at the right monthly price. It may be closer than you think...
Posted 02/11/2021 Back to Blog