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What is used car finance?

Looking for used car finance? You might be clued up already or you might need some extra information… Either way here is our guide to used car finance so you can decide whether or not it is the right option for you.

Used car finance is a way to pay for a car, without having to find a big chunk of money upfront. You typically put down a deposit and spread the cost of the car over a few months or a few years, to make the purchase more accessible or more convenient.

Car finance is growing more and more in popularity, with many people choosing finance over funding a car upfront, there are a few reasons for this…

Firstly, it allows you to invest the extra money elsewhere. Whether you want to save it or spend it, or simply have it for a rainy day, it means that you are not tying it all up in a vehicle. It gives you more financial freedom if it is the right option for you.

Another benefit is that there are different options available. Depending on what you’re looking for, your budget, and your circumstances, there are different lenders and different deals to suit. Here is a couple of them for you.

Personal contract purchase is a super common type of car finance. You typically pay a deposit and then the payments are spread out over a set number of months. At the end, you are presented with different options, like whether to pay a balloon payment to keep the car, hand it back or use it as a deposit against your next car and agreement.

Hire purchase is similar, apart from the fact that you own the car at the end. Again, it all depends on what you are looking for and what will work for your lifestyle.

Another option is bad credit car finance, whereby lenders work with people who have struggled with finance before or have found themselves with bad credit.

Back to the benefits of car finance after that short detour, it also means you can sometimes afford a nicer or newer car, than if you were having to find all of the money upfront. This means that if you are looking for a sports car or maybe an SUV, you might be able to find a better spec, limited edition, or just a more luxurious model, at a monthly price that feels more than doable for you.

Finance isn’t right for everyone, and that is important to remember. But, it can be a really positive and accessible option for many. Whether this is your first time buying a car or you have had many in the past, it could be worth checking out your options when it comes to financing your car.

If you would like to explore this further or need some help breaking down the APR and the PCP, get in touch with a member of the team at We Finance Any Car, where a member of the team will be more than happy to help you.