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I would like to borrow
£60
To pay back over
3.5 years

Zuto is a credit broker, not a lender. Our rates start from 8.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £9,000 over 60 months with a representative APR of 20.9% the amount payable would be £234 a month, with a total cost of credit of £5,047 and a total amount payable of £14,047.

Zuto Limited. Registered in England under number 05722976. Registered office: Winterton House, Winterton Way, Macclesfield, Cheshire SK11 0LP. Zuto Limited is acting as a broker and not as a lender. Authorised and regulated by the Financial Conduct Authority, registration number 452589. Zuto can introduce you to a limited number of finance providers, based on your credit rating, Zuto won't charge you anything for this service, but do get a fee from the lender which varies based on the product or amount borrowed.

How many years will a bank finance a used car?

If you’re purchasing a used car with the assistance from a bank on the high street you might be wondering ‘for how many years will a bank finance a used car?’ The answer is that this may vary depending on a number of factors, such as your financial history and what kind of finance you are looking to take out.

Making an application for finance from a bank

If you’ve got a good history with your personal bank, then making an application for any term of finance can be a very convenient way to acquire lending support. The bank will already possess all your information, from your personal details to your financial history, such as savings, monthly outgoings and regular income.

You might find however that other banks offer better interest on finance than your personal bank and decide to apply with one of them instead.

Buying a used car from a bank

Buying a used car upfront in one payment with cash is always the most cost effective way of purchasing as it cuts out the interest you will pay, but not all car buyers can afford to do this. After cash buying, a car loan is the least expensive form of finance to secure yourself a used car.

You borrow a sum of money from the bank to buy your chosen vehicle and then you pay it bank over a typical term of 12 to 60 months. You pay in regular monthly instalments, which will include interest on your loan. When all repayments are made, the debt is settled and the used car is yours.

Length of term affects size of repayments

Typically with finance for both new or used cars, the lengthier the term over which you make your repayments, the smaller the size of your monthly payments will be. However, as you’re borrowing over a lengthier period of time, you’ll be in turn be paying more interest, so the total sum you pay will be higher.

If you repay your used car finance within 12 months, the monthly instalments will be higher but you won’t be paying so much interest, however you may find that smaller amounts can be more manageable for you over a 60-month payment plan, making this a more realistic option.

Saving a deposit

Prior to applying for any kind of car finance over any length of term, it’s worth considering saving up for a deposit to put towards your purchase on a used vehicle. By being able to offer a deposit, you’ll not only look like a better prospect to banks and other lenders, but you will be able to secure smaller monthly repayments.

If you’d still struggle to pay the size of monthly installments offered to you over a five-year plan (60 months), then saving a deposit for your car is a way of making your purchase more affordable. Possessing a deposit, you’ll need to borrow less to buy your car, so your monthly repayments will be smaller.

Other forms of finance available from banks

While known for providing personal loans, sometimes referred to as “car loans”, banks like many other lenders will offer different forms of finance. Two common options are Hire Purchase (HP) and Personal Contract Plans (PCPs).

As experts in the automotive industry, we’re perfectly placed to offer assistance and advice on all aspects of car finance here at Car.co.uk. If you’re looking for a finance agreement over a longer length of term to pay for your used vehicle, we’ll do our best to find you a match.

Other related FAQs

Looking for more related content to this? We’ve picked a selection of related topics that you may find helpful

Yes, certain lenders will consider offering finance for a vehicle that is sold privately.

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A guarantor car loan is an agreement in which a third party (usually a family member or friend) agrees to guarantee the repayment of your loan if you fail to keep up with your payments.

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The simplest way to find out how much is left on your car finance agreement is to contact your lender. Alternatively, you can calculate this figure yourself.

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The maximum age of used cars eligible for finance agreements tends to be 10 years, although there are exceptions to this.

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Car loans for used cars vary in length. Terms are typically between 12 and 60 months.

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Don’t worry if you can’t remember who your car finance is with. You can find out by checking your paperwork, looking at who you make your payment to through your bank, or calling the dealership you bought your car from.

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Under certain circumstances, you can claim the cost of a car as a capital allowance, meaning you can deduct some of the vehicle’s value from the profits of your business before paying tax. However, strict criteria apply.

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Car finance agreements don’t tend to include insurance as standard, but there are packages available that do.

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Your ‘settlement figure’ is the amount that the car finance company require to pay off your finance in full. Since this changes as interest is added and as payments are made, requested settlement figures are usually only valid for a short time.

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Car finance agreements can be a great option for a wide range of people. Before committing to a deal though, it’s always important to read the terms carefully and consider the pros and cons.

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Car.co.uk is a trading name of New Reg Limited which is Authorised and regulated by the Financial Conduct Authority (FRN: 626225). New Reg Limited is a loan broker and not a lender. The information contained on this website is for editorial purposes only and not intended as financial advice. New Reg Limited has partnered with Autoguard Group for the purpose of offering car warranties in accordance with the terms and conditions documented on the warranty check-out page.
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