Search used cars on finance

Car finance is a way to purchase a vehicle without paying the full amount upfront. It allows you to spread the cost of a new or used car through manageable monthly payments.

Think of it as borrowing money specifically to buy a car. You'll need to consider:

• How much you need to borrow
• Your preferred repayment period (typically 1-5 years)
• Whether you can pay a deposit (this reduces your overall loan amount)

Once approved, you'll make regular monthly payments that include both the loan amount and interest. Various types of car finance are available, and some arrangements may use the vehicle itself as security against the loan.

Remember: The larger your deposit and the shorter your loan term, the less interest you'll typically pay overall. It's worth comparing different finance options to find the most suitable arrangement for your circumstances.

There are three main ways to finance your car purchase:

Hire Purchase (HP)

• The car acts as security for the loan
• You become the owner only after making all payments and paying the 'Option to Purchase' fee
• Deposits are common but there's typically no mileage limit
• Suited to those who want to own the car outright eventually

Personal Contract Purchase (PCP)

• Also secured against the vehicle
• Offers flexible end-of-term options:
• Return the car
• Use any value above the guaranteed future value as deposit for a new car
• Keep the car by paying the final 'balloon payment'
• Generally lower monthly payments than HP
• Annual mileage restrictions usually apply

Personal Car Loan

• Receive full amount upfront to purchase the car
• Fixed monthly repayments
• Higher monthly costs compared to HP or PCP
• Complete ownership from the start
• No restrictions on mileage or selling
• More flexibility as you can sell the car whilst still paying the loan

Finding the most cost-effective car finance solution isn't as simple as looking for the lowest monthly payment. The overall cost depends on several key factors:

• The type of finance agreement
• The length of the loan term
• The Annual Percentage Rate (APR)

Personal Contract Purchase (PCP) often appears the most affordable because you're only borrowing part of the car's value. This works by:

• Only paying the difference between the car's current price and its predicted future value
• The predicted future value is called the Guaranteed Minimum Future Value (GMFV)
• This results in lower monthly payments compared to other finance options

However, it's important to note that:

• The total cost might be higher in the long run
• You won't own the car unless you make the final balloon payment
• The cheapest option for you will depend on your individual circumstances and whether you want to own the car outright

Remember: Always calculate the total amount you'll pay over the entire agreement, not just the monthly payments, to determine the truly cheapest option.

You can apply for a car loan with CarFinance 247 if you're over 18 years old and have a minimum of three years' address history in the UK.

APR stands for Annual Percentage Rate and it represents the total annual cost of borrowing money including interest, admin fees, and any arrangement charges.

APRs are tailored to your individual circumstances and the one that you're offered depends on several factors including your credit score.

To begin your car finance application, we'll need some key details to find you the most suitable approval from our panel of lenders.

You'll need to provide:

• Personal information
• Employment details
• Your monthly income
• Details about the car you wish to purchase (if you've chosen one)
• The amount you'd like to borrow

The process starts with a simple online quote. Once you've completed our application form with these details, we can begin searching for an approval in principle that matches your circumstances.

Remember: The more accurate information you provide, the better we can match you with appropriate lending options.