A bit of strategic thinking goes a long way when it comes to keeping monthly car payments manageable. Financing used cars is a great start but it’s not the only way to save. Here’s a mix of tried-and-true methods and lesser-known hacks to help you lock in affordable monthly payments while still securing the car you need.
Why Buying a Used Car Can Be the Smart Choice
No surprises here – keeping monthly payments affordable is usually a top priority for Brits interested in car finance for used cars. After all, your budget needs to cover more than just the vehicle itself. It has to balance against rent, bills and the unexpected costs that come with day-to-day life. Not to mention the costs associated with car ownership in general.
Buying used can make a lot of sense when monthly payments are a priority. Why? Lots of reasons.
Used cars are priced lower than new models which makes it easier to find finance terms that fit within a realistic budget. Even better, they’ve already bypassed the dreaded depreciation phase. Just how bad is depreciation? A new car can lose around 20% of its value within the first year. In comparison, a used car has already absorbed most of this hit. Financing a used car means you’re essentially paying closer to the vehicle’s real, lasting value. This translates to a better deal over the life of your loan.
Wondering if used cars can be purchased on finance? Absolutely.
Finding the right used car finance plan can make all the difference and allow you to enjoy car ownership without stretching yourself too thin. This is exactly what we specialise in at My Car Credit. We ditch the cookie-cutter method and use a personalised approach to help you find the right finance plan. A tailored plan can be the difference between struggling with payments and owning a car that feels right at home in your budget.
Understand Your Budget Before Applying
Select your weapon of choice – your smartphone’s budgeting app, a simple spreadsheet or good old-fashioned pen and paper – and get real about your budget. You want to find out how much can you spend each month without tightening your belt too many notches.
Start with the essentials – rent, bills, groceries and whatever else keeps your household running. What’s left over? That’s your baseline for a comfortable car finance payment for used cars.
If you’re the number-crunching type – or if maths just isn’t your thing – the My Car Credit’s affordability calculator has your back. It helps you plug in your numbers and get a realistic look at what fits.
Poor Credit? Not to Worry
Maybe your credit history’s not sparkling? Join the club. Poor credit doesn’t mean you can’t finance a used car. It just means you might need a slightly different playbook. Sure, you could see higher interest rates, but affordable monthly payments aren’t off the table.
Good lenders will look beyond your credit score and consider factors like steady income and a decent deposit, to gauge the bigger picture. Some plans are built with flexibility in mind for people in this exact situation. This makes it possible to balance your car payments alongside everything else life throws your way.
Curious what’s possible with your situation? Use the My Car Credit affordability calculator to get a tailored view of what’s realistic. When you have your figure you can start the fun part – looking for a used car to finance!
Consider a Larger Deposit to Lower Monthly Payments
Got some cash stashed away? Using it to pay down a chunk of your car finance deal can be a smart move. A larger deposit lowers the amount you’ll need to borrow and as a result, shrinks your monthly payments. Plus, it earns you a big, shiny gold star with lenders.
The best part? You’ll continue to enjoy the benefits month after month, for the duration of your contract.
Want to see the impact? Try adjusting the deposit amount in My Car Credit’s finance calculator and watch how those monthly payments respond. You’ll likely find that even a small boost can ease the financial pressure and give you some breathing room.
Looking for a deal that fits your budget? Our team is here to help you find an auto finance agreement that works for you. Get in touch with an advisor today to chat about options for financing used cars.
Opt for a Longer Finance Term
Maybe a big deposit isn’t on the cards right now. If this is the case, it might be worth extending your finance term. By spreading the loan over a longer period, you can lower each monthly payment and make your loan easier to manage.
But there’s a trade-off. A longer term means you’ll pay more interest overall. It’s not necessarily a bad thing, if your priority is getting your monthly payments as low as possible. But it’s something to be aware of with car finance for used cars.
The key is finding a term that doesn’t stretch your budget now or hit you too hard in the long run.
Improve Your Credit Score for Better Terms
Down to play a longer game? Let’s talk about credit scores.
They have their quirks, but there’s no doubt they impact what you’ll pay in interest when financing used cars. A higher score generally unlocks lower interest rates, which brings down your monthly payments. If you’re not in a rush, take a few months to tidy up your credit. Small changes can make a big difference so don’t underestimate the potential.
The below tips aren’t just effective but are easy to action:
- Clear up any lingering debts – High-interest debts (especially credit cards) are worth tackling first. And regular bill payments are non-negotiable if you want to keep that score healthy.
- Skip new credit applications for now – Each application can give your score a bit of a ding, so it’s best to avoid new credit in the months leading up to your car finance application.
- Stay on top of your current accounts – It sounds obvious, but consistent, timely payments on your existing accounts can build your score bit by bit.
- Join the electoral roll – This one’s a quick win. Registering to vote in the UK is a simple way to boost your credit score. Lenders look for stability and being on the electoral roll helps verify your identity and ultimately, add a bit more weight to your credit profile.
- Keep credit utilisation low – Aim to use only a small portion of your available credit. For instance, if you have a credit limit of £1,000, try to keep your balance below £300. This shows lenders you’re not maxing out your accounts.
- Regularly check your credit report – Errors do happen. Reviewing your report every few months can help you spot and dispute any inaccuracies. We’re talking anything from outdated information to mistaken identities. It’s also a good way to keep an eye on anything that might need attention.
The goal is to make your credit profile look as healthy as possible, so you qualify for better finance terms when financing used cars. If you’re interested in more tips, check out our guide to improving your credit.
Choose a Car That Fits Your Budget
The car itself is a big factor when it comes to monthly payments. It’s easy to be tempted by hyped models like the revamped Tesla Model Y and Mini Aceman all-electric crossover SUV. But if affordable payments are your goal, buying second-hand can be a practical move.
Looking for a used car to finance? The UK market is packed with options that balance value and reliability. Ford Fiesta, Nissan Qashqai and Renault Clio – These aren’t just bestselling models (though their popularity does ensure there’s plenty of stock on the second-hand market). Used models all promise solid performance without draining your wallet.
Our advice? Do your homework, shop around and you’ll find a used car to finance that ticks all your boxes.
Get Personalised Support With the My Car Credit Team
Financing a used car doesn’t have to be a solo mission. And it certainly doesn’t have to be stressful. At My Car Credit, our team is here to guide you through the ins and outs of securing a finance plan that fits your budget. Whether it’s deciding on a deposit amount, weighing the pros and cons of different terms or figuring out what car fits best, we’re here to help you with personalised advice, every step of the way.
Ready to drive your next car on your terms? Start with our online application. It only takes a few minutes, and it’s designed to keep things simple so you can get behind the wheel faster.
Rates from 9.9% APR. Representative APR 10.9%
Evolution Funding Ltd T/A My Car Credit
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