Used Car Finance
There’s no doubt that the prospect of buying a new car is exciting, whether it’s brand new or used – it’s still new to you. However, buying a car is by no means cheap and for some, the idea of paying the full cost upfront for a car is well out of reach. This is why many people resort to obtaining a car using car finance, as it grants them the opportunity to get the car they’ve always wanted.
How to obtain used car finance
Hire purchase – with this type of agreement, you put down a deposit and spread the entire cost of the car over the agreed period of 24 to 60 months, plus interest. At the end of the contract, you have the option to own the car outright. You will then pay a small fee in order to cover the change of ownership.
Personal contract purchase – with this type of finance, you pay a deposit and make monthly payments – similarly to hire purchase. The difference with PCP is that you pay the amount the car will depreciate by rather than the car’s value. However, with personal contract purchase, you do not own the car at the end of the fixed period. The bigger the deposit you put down, the more you can reduce the portion of the car price you’re charged interest on.
At the end of the agreement, you can choose to make a final payment, known as a ‘balloon/boomerang’ payment (which is usually the car’s resale value) in order to own the car, return it to the dealer, or use the car as a deposit towards another car, with the same dealer.
How much does used car finance cost?
When it comes to car finance, there is not one cost that fits all, it largely depends on the type of car finance you go for and more personal circumstances such as your credit score and affordability, which will always be assessed by a lender upon signing up to any car finance deal.
However, our car finance calculator will provide you with an indication of what your monthly repayments for a particular amount will be, over a certain term. The calculator breaks down the monthly cost but also shows you how much interest you’ll pay as a result, as well as the total cost of credit. It may be that you want to pay an up front deposit to lower the monthly payments, but we can offer no deposit car finance.
Alternatively, you can apply for car finance today.
Why choose Best Online Car Finance
A car can be one of the largest investments you make in your lifetime alongside your house, so finding the funds that allow you to pay for a new car can be daunting. However, we aim to help as many people as possible to obtain car finance, even if you have been refused car finance in the past, have defaults on your credit file or have been discharged from bankruptcy or an IVA, as we believe that everyone should have the right to own their own car.
We offer both hire purchase and PCP car finance, so you can find the finance deal that’s right for you. Whilst we do try and help as many people as we can, approvals are subject to a credit search and your perceived ability to repay the loan.
Want to find out more about new or used car finance? Contact us today.