used car finance
Rates from 9.9% APR. Representative APR 19.2%. Smooth Car Finance is a credit broker, not a lender.
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Used car finance: Affordable and flexible options
Looking to drive away in a reliable used car without paying the full cost upfront? Purchasing a used car on finance offers an accessible way to spread the cost over manageable monthly payments. Whether you’re upgrading your current vehicle or buying your first car, financing a used car can fit your budget and lifestyle.
What is used car finance?
Used car finance is a type of loan that helps you purchase a pre-owned vehicle. Instead of paying the total cost upfront, you can spread the payments over a set term, typically ranging from 12 to 60 months.
Why I should finance a used Car?
Financing a used car has several benefits:
- Affordable monthly payments: Spread the cost over time to fit your budget.
- Drive a reliable car: Access better models that might be out of reach if paying upfront.
- Flexible terms: Choose a term length that suits your financial situation.
Finance options for financing a used car
- Pay a deposit upfront (usually 10-20% of the car's price).
- Make fixed monthly payments over an agreed term.
- Own the car after the final payment.
Key benefit: No mileage limits and straightforward ownership at the end.
Personal contract purchase (PCP):
- Pay lower monthly payments due to not paying off the full value of the car upfront.
- At the end of the term, choose to keep the car, return it, or trade it in.
Key benefit: Flexible end-of-term options to suit your needs.
- Start your finance agreement without an upfront deposit.
- Higher monthly payments may apply, but this option makes it easier to get on the road quickly.
Key benefit: No large upfront cost required.
Advantages of financing a used car
- Lower purchase price: Used cars are more affordable than new ones, saving you money upfront.
- Wide selection: Choose from a range of makes and models to suit your preferences.
- Quick approval: Many lenders offer fast approvals for used car finance applications.
Things to consider before financing a used car
- Credit score: A good credit score can help you secure better interest rates.
- Interest rates: Used car finance may have slightly higher rates compared to new cars.
- Vehicle condition: Ensure the car is in good condition and has a full service history.
- Deposit: Decide if you can afford a deposit or need a no-deposit finance option.
Can I get car finance with bad credit?
Let's face it, unexpected events can throw your credit score for a loop. But that shouldn't hold you back from getting the car you need. At Smooth Car Finance, we aim to help you secure affordable car finance.
Here's the good news:
- We will do everything we can to help find you a deal you're eligible for. We understand that bad credit doesn't define you, and we work with a variety of lenders who offer options for all credit situations
- Our pre-approval process is quick, easy and transparent. Letting you know where you stand upfront and we won't run a hard credit check until your proceed with your quote.
- We aim to offer flexible options. With a variety of loan terms and down payment options, we can tailor a plan that fits your budget and credit history.
What do I need to apply for car financing?
To make an application for car finance, we need very little data:
- Full name and driving licence
- Employment details
- Residential status and address
- Mobile number and email address
You have to be between 18 and 75 years old, be a UK resident for at least 12 months, and receive a monthly income of at least £1,000.
Why should I use Smooth Car Finance?
At Smooth Car Finance, we specialise in helping customers secure the affordable finance deals for used cars. Our process is simple, fast, and tailored to your needs.
- Flexible options: Hire purchase, PCP and no deposit deals.
- Trusted partners: Work with reputable lenders.
- Expert advice: Our team is here to guide you through the process.
Have you got approved?
A dedicated account manager will guide you through the next steps, answer your questions, and help you find the perfect car to fit your needs.
Already have a car in mind?
No problem. Let us know and we'll aim to expedite the loan application.
Need more info before you get started?
We're here to help! Just contact us today.
Car finance loan calculator
*Please note that if you proceed with your quote, a hard credit check will be performed, which may affect your credit score.
Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37. We compare multiple lenders to help find the best rate available from our panel and offer you the best deal you're eligible for. We earn a fixed or percentage-based commission on the finance agreement, which will not affect your interest rate or total repayment amount. The full commission details will be provided in the commission disclosure document before proceeding with the finance agreement.
HOW IT WORKS
Our Process Is Simple...
Tired of complicated, time-consuming finance processes? We make it quick and straightforward with our three-step approach:
Apply and get approved
Approval takes just minutes. Complete our simple online application, we’ll instantly compare rates and aim to find the best deal for you.
Choose your car from any dealer
Whether you’ve already found your dream car or need help sourcing it, we’ll manage everything for you, from dealer communication to thorough vehicle checks, ensuring a seamless buying experience.
Hit the road in no time
Once the paperwork is sorted, it’s time to collect (or have delivered) your new car. Getting behind the wheel has never been easier.
Frequently Asked Questions
What is the maximum loan term for used car finance?
The loan term for used car finance typically ranges from 12 to 60 months. The ideal term will depend on your budget and how much you can comfortably afford each month. Longer terms will lower your monthly payments but increase the total amount repayable.
What deposit is required for used car finance?
The deposit amount usually ranges from 10% to 20% of the car's value for Hire Purchase (HP) finance. However, if you choose a No Deposit option, you can start your agreement without an upfront deposit, although your monthly payments may be higher.
What is the difference between HP and PCP?
With Hire Purchase (HP), you make regular payments and own the car outright at the end of the agreement. With Personal Contract Purchase (PCP), you pay lower monthly payments covering the car's depreciation, and at the end of the term, you can choose to keep the car, return it, or trade it in.
Is it possible to get a loan for a used car with no deposit?
Yes, you can opt for No Deposit Used Car Finance, which allows you to start the agreement without paying an upfront deposit. However, this may result in higher monthly payments to cover the full cost of the car.
What happens if I want to return the car early?
If you choose a PCP or Contract Hire agreement, there may be fees for early termination. It’s important to check the terms of your contract to understand any penalties before making the decision.