If you’re a car buyer in the market for a used vehicle and you can’t afford to pay up front in full, you might be looking to make a purchase with the aid of finance. There are a number of different methods of obtaining finance for a used vehicle available on the current market, but where can you go to get a car loan for a used car?
The best way to settle on any deal regarding car loans is to look at as many as possible, so you can contrast and compare them against each other and ensure you’re getting the very best deal.
Car loans for used cars
Buying a used car with the assistance of finance can be a convenient method for many car buyers in comparison to cash or personal loans. In fact, over 80% of car buyers in the UK use finance to aid funding buying used car.
Personal car loans from the bank for used cars
While paying in full with cash is always a desirable way to pay for a used car, it’s not always an option open to all of us. A personal loan or “car loan” from the bank is the next cost-conscious way of securing a car, but how good a deal it is relies on what shape your credit history is in. If you have a good to excellent credit score, you are not only more likely to succeed in your application for finance, but will secure a better rate of interest when it comes to your monthly repayments.
If your credit score is punctuated with late payments, defaults or other issues, this might not be the best route for you.
Do your homework
You can carry out online research easily these days and get in touch with a versatile selection of lenders. Write down the car loans offered and compare them with each other over a number of factors, such as annual percentage rate (APR), length of terms available and interest charged. Consider your circumstances and all the available forms of finance offered to decide which one fits best with your individual circumstances. Once you’ve got all the information collated, contrast and compare the different deals on the table and make your decision on which car loan is a match for your needs.
This method is a very hands-on approach, but it does put you in control when it comes to choosing where you get your car loan from.
Car loans for used cars via online brokers
Applying for finance through an online broker can be a more convenient and time-efficient method of securing a car loan for a used car.
Online brokers often have access to a select panel of lenders with whom they do business. This often allows them to secure better deals for their customers then they’d be able to obtain for themselves.
The services offered by brokers, including online calculators, will allow you to find out very quickly how likely you are to be accepted for finance and roughly what you will be able to borrow very quickly.
With a one-stop shop, you can often find everything you need to make your decision in one place. Brokers are able to search all the used car loans on offer and match them to your personal history to find a bespoke loan that fits your circumstances.
If you have any concerns, they’ll also be able to offer advice, which can be helpful if you’ve got special circumstances like a poor credit rating or want to buy an older used car.