Before beginning your search for a car, it’s important to establish whether you want or need a brand-new vehicle. Being a car’s first owner might be appealing in many ways, but don’t forget that vehicles depreciate in value as soon as they leave the forecourt. So, whilst there are ways of securing car finance on new vehicles, you may find yourself wondering, “is it smart to finance a used car?”
Why finance a used car?
Used cars will cost less than new ones. Any car finance agreement for a used vehicle will therefore have lower monthly repayments and shorter terms than car finance for new vehicles. As such, if your credit rating is poor, you’re more likely to secure car finance on a used car compared to a new one, because the repayments are lower, so lenders will see the deal as less risky.
What’s more, car finance providers are becoming more flexible with the kinds of car finance deals available on used cars. From PCP to Hire Purchase, there are many different options available, and some providers will now also allow you to lease a used vehicle.
So, is it smart to finance a used car?
If saving money is your priority, or if your credit score is low, then it’s smart to finance a used car. Because the vehicle is used rather than brand new, any car finance agreement will have lower monthly repayments and shorter deals as a result.
You can use My Car Credit’s car finance calculator to get a sense of the kind of agreements that are within your reach. Alternatively, contact us on enquiries@mycarcredit.co.uk to find out how we can help you secure a great finance term on your used vehicle.
Rates from 9.9% APR. Representative APR 12.4%
Evolution Funding Ltd T/A My Car Credit
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