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 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

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!