The car finance sector is constantly growing. With new car registrations in the UK reaching all-time highs in the recent years, it’s easy to understand why. More people have become enticed by the simplicity of the process and the numerous benefits that it offers. Although, buying a car with cash is still a popular option, it’s slowly getting pushed out with the slightly more appealing car finance. If you have never purchased a used car on finance, it can be rather difficult to wrap your head around everything that the process required. Many are still unfamiliar with the process itself, and many questions are constantly being asked.
One of the most popular questions that seems to be coming up a lot lately is “Can I buy a used car on finance?” It’s a reasonable concern that many potential buyers are faced with. To give you a simple answer – yes, it’s possible to purchase a used car on finance; however, there are a few things you should know before attempting to begin the process.
It’s no secret that used vehicles are considerably cheaper compared to new cars. This is due to the fact that a car’s value decreases over the years, and the more previous owners it had, the cheaper it is going to be. This is great for people, looking to buy something less extravagant, and slightly older. Money is one of the main reasons why people opt to go with a used vehicle; however, other factors come into play.
It doesn’t matter why you’re looking to buy a used car thought; all that matters is that you’re confident you’ll be able to make your regular payments.
If you don’t have a budget in mind, this is a good place to start. Sit down with a piece of paper, and work out how much you can afford to borrow. Also, make a list of vehicles you are considering buying and check whether you’ll be able to afford them.
It’s better to go into the process, with a clear plan in mind, rather than trying to work things out as you go along. Since, the process can be quite confusing, especially if you haven’t gone through it before, you’re better off going into it prepared.
The more you know before you apply, the easier the process is going to be for you. Do your research, prior to filling out any applications, and you’ll be able to speed through the process in no time.
Depending on your circumstances, and the amount you’re looking to borrow, there are numerous different options available out there. Hire purchase and personal contract purchase are the most popular methods of financing a car; therefore, it will likely be one of the two that you end up going with.
Whilst hire purchase is best for people looking to own their vehicle at the end of their term, personal contract purchase is better suited for those looking to change things up every few years, as it allows you to return or exchange your vehicle at the end of the term.
Both options come with a number of benefits, therefore it entirely depends on your personal circumstances, which option is going to work best for you.
Since used vehicles are typically much cheaper, compared to the latest cars on the market, you will likely be able to purchase one even if your credit score is quite poor.
The one thing you should definitely do, prior to applying for any form of finance is research. Familiarise yourself with the market, learn the correct terminologies, and your chances of getting approved will automatically increase. If you’re unprepared, you’re likely going to end up confused and lost, leading to a slow and frustrating experience.
Although, most car finance providers cater for people after used vehicles, you have to remain cautious as some specialise in expensive luxury models. If you apply for finance with the wrong provider, your application will likely get rejected , resulting in your credit score becoming poor overtime.
Every application and rejection becomes part of your of your permanent file; therefore, it’s better to be cautious, rather than applying with a bunch of providers in hopes of getting approved.
At Trusted Car Credit, we offer extremely competitive rates for anyone after a new vehicle. Whether you’re looking to buy the latest vehicle on the market, or a cheap used car on finance, we will do our best to help find you the best deals possible. Don’t hesitate – fill out our quick and easy online application today, and come one step close to owning your dream car. If you have any further questions, feel free to get in touch, and we’ll be more than happy to answer all your questions and help you in any way we can.