Used Car Finance To Suit You

Rates from 10.9% APR. Representative APR 19.9%

Audi A1
CAR FINANCE SOLUTIONS

Used Car Finance.

Buying a car, whether new or used, is one of life’s bigger purchase decisions, so it’s important to take the time to make the right choice. Not just with the vehicle, but with the method of payment. It’s easy to buy a used car on finance, which is why it is a popular option for many customers. Plus, in many cases, you can choose a car at a showroom, sort out the finance and drive the car home on the same day. 

Buying a car online is increasing in popularity too. Because many customers are able to select their car, apply for finance and have it delivered to their homes within days. However, if you choose car finance, it’s important to make sure you’re not paying more than you have to. And that the finance deal you choose suits your financial circumstances, as well as the way you use your car.

Used Car Finance Vs New Car Finance.

The APR for used car finance is often higher for used cars compared to new ones. For example, a new car scheme may offer close to or 0% APR, to a customer with a good credit score. However, the same customer with the same credit score may end up paying anywhere upwards of 5% APR to as much as 20% APR on a used car scheme. This means that in some situations, paying lower interest rates on a new car contract with a higher cash price may be a better long-term deal than paying higher interest rates on a used car deal with a lower cash price.

Therefore, the terms of your finance deal are just as important to consider as the cash price of the car. It’s also important to compare used motor finance APR so that you understand exactly how much interest you’ll be paying on top of the loan amount.

There is just as much variety in vehicle financing for used cars as there is for new cars.

Personal Loan.

The cheapest way to buy a car is, of course, to pay cash, or at least partially pay with cash. Provided that you have a good credit score, a personal loan can be a simple and relatively cheap way of buying your car. As the loan is unsecured, the car is yours as soon as you buy it, and you can sell it in the future if you wish.

 

Used Car Finance

Hire Purchase Car Finance.

HP is a type of finance where you pay a deposit (usually 10%) and then pay the balance in regular installments over a set number of months. You are effectively hiring the car until you’ve paid the full amount plus interest. So if you default on any of the payments during that time, the dealer can repossess the car. Some agreements have additional flexibility whereby you can return the car after you’ve paid half the balance. However, with Hire Purchase agreements, you usually keep the car a the end of your agreement.

Personal Contract Purchase Car Finance.

Like HP, PCP involves a deposit and regular repayments over a fixed period of time, during which the car is secured against your loan. Your payments are based on the guaranteed minimum future value of the vehicle. This means that you won’t pay the projected resale value of the car, and instead make lower monthly payments. However, you get the choice to make a final payment, known as the ‘balloon payment’, allowing you to keep the vehicle. You can also hand the car back. Or you can pay the resale value of the car if you wish to part exchange it for another vehicle.

Because of this arrangement, there are restrictions on how you can use the car, such as mileage restrictions and keeping the car in a condition within reasonable wear and tear. Exceed these and you may be asked to pay extra fees.

Used Car Finance
Payment History
35%
Amount You Owe
30%
Length of Credit History
15%
New Credit Opened
10%
Type of Credit
10%

Credit Score Breakdown.

What Factors Affect Your Credit Score?

Financial well-being is strongly influenced by people’s credit scores. Your credit score is a measure of your financial responsibility. The higher your credit score, the better your chances of getting car finance with lower interest rates, and other benefits. Having a low credit score may prevent you from qualifying for a car loan that you may want, or your interest rate for borrowing will be higher than those who have excellent or good credit.

If you seek advice on how to improve your credit score or simply require more information, please visit: Ultimate Guide to Credit Scores

Try Our Car Finance Calculator?

Rates from 10.9% APR. Representative APR 19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply

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Rates from 10.9% APR. Representative APR 19.9%

Frequently Asked Questions.

Why use Bright Motor Finance for motor finance?

At Bright Motor Finance we have many lenders on our panel, so we can make sure you are getting the best motor finance deal for you. Plus, we do all the admin, paperwork and negotiations with the dealer.

What is the difference between HP & PCP?

HP and PCP car finance are fairly similar to one another. However PCP tends to have lower monthly repayments. Although that the full amount that will need to be repaid is generally higher than with hire purchase.

PCP works by having a loan for the difference of the vehicles price when it is brand new, and the anticipated vehicle value when the agreement has been completed. This is because the vehicle will of course, depreciate over time.

HP works by usually paying a deposit of around 10% of the cars initial value, and then this value will be paid off in fixed monthly instalments. Car dealers as well as brokers (such as ourselves) can arrange a hire purchase finance agreement.

What is a car finance brokerage service?

In essence, a car finance broker acts as a middleman between the customer and the lender. A car loan broker handles all the paperwork and negotiates with lenders on your behalf. By doing this, you can rest assured that the broker is fighting for you to get you the best deal. Our goal is to make your car finance journey as simple as possible. As well as this, car finance brokers such as ourselves have deals that aren’t usually available to the general public. Instead of charging the customer, car finance brokers charge the dealerships.

What if I have been refused by other brokers?

There is still hope even if other brokers have rejected you in the past. We offer a number of finance options for those with bad credit scores at Bright Motor Finance. We will conduct a hard credit check when you apply for car finance through us, which may negatively affect your credit score. Especially if they were conducted within a short period of time. As a result, it is recommended that you wait between 3-6 months before applying for car finance again after being declined.

What if I’m struggling to make payments?

Having trouble making your car finance payments? You have a number of options available to you. One of the following charities/organizations can provide you with free, independent advice. 

Can I change my mileage on PCP contracts?

In a nutshell, the answer is no.

This is because the car’s resale value has already been calculated once you’ve signed your PCP car loan contract. It is crucial to know that exceeding your agreed-upon mileage allowance will result in additional penalties at the end of your PCP contract.

How does car finance affect my credit score?

Initially, asking for a car loan will typically have a negative impact on your credit score due to the intensive credit checks that lenders will perform. You should be aware, however, that if you make your car finance instalments on schedule. This will almost certainly improve your credit score.

What is APR?

The annual percentage rate (APR) is the total amount charged for the loan. APR, on the other hand, comes in two varieties. Exact APR implies that the rate displayed to you is the rate you will receive. Representative APR, on the other hand, suggests that 51 percent or more of those who apply for financing will receive that rate. This means that customers with weak credit may face a higher APR.

Representative APR is commonly used to advertise a company’s rates. After you have provided the lender with all of the essential information, they will be able to provide you with your specific APR rate.

GAP insurance and do you need it?

What exactly is it?

Gap insurance is an abbreviation for Guaranteed Asset Protection.

Gap insurance is a type of insurance that is meant to cover the difference between the amount your insurance provider pays out in the event that your car is written off or stolen and the price you paid for the vehicle. However, you should be aware that gap insurance supplements, not replaces, your usual car insurance.

So, when do you need gap insurance?

Gap insurance can be beneficial in a variety of ways. First and foremost, if you took out a large loan to purchase your car. As previously said, gap insurance would be advantageous if your automobile was stolen or written off. This is due to the fact that the gap will pay off the existing debt.
Furthermore, gap insurance may be advantageous if you are concerned about the depreciation of your vehicle. In the first year, a brand new car will lose 15-35 percent of its value. As a result, gap insurance might assist you in receiving a larger reimbursement if your automobile is written off after it has already depreciated.

Where can I purchase gap insurance?

Thanks to Bright Compare, comparing gap insurance quotes has never been easier!

What Happens If There Is An Issue With The Vehicle?

If the vehicle is defective upon delivery, you can simply refuse it and return it to the dealership.

Can I alter my car if I finance it?

You can, but you must first obtain authorisation from the financial firm before making any changes.

What affects the cost of my car finance payments?
  1. Your deposit size
  2. How long your car finance agreement will last
  3. The interest rate
  4. What car do you choose?

The old traditional way of buying a car is by getting the motor finance at the same place as you buy the car from. But this doesn’t always ensure you the best motor finance deal.

If you get the finance first from Bright Motor Finance, you are buying your car from a position of strength, you know what you can afford. Often dealers can only offer a limited number of deals from one motor finance company. At Bright Motor Finance we have many lenders on our panel, so we can make sure you are getting the best motor finance deal for you.

Plus, we do all the admin, paperwork and negotiations with the dealer.