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Tips for buying a second hand car with finance

When buying a second hand car with finance the choices of finance will depend on where you were buying your vehicle. If you go with a private seller then you will have no option but to take out a loan before buying the car. If you are buying a second hand model from a dealership then you could choose to take out a loan or you could take a hire purchase agreement.

When buying a second hand car with finance the choices of finance will depend on where you were buying your vehicle. If you go with a private seller then you will have no option but to take out a loan before buying the car. If you are buying a second hand model from a dealership then you could choose to take out a loan or you could take a hire purchase agreement.


When buying a second hand car with finance your credit rating also plays a major factor into what type of borrowing could be taken. If your credit rating is excellent then your options will be more open and you will be able to get access to some of the cheapest rates of interest. However should it be poor then you might have to consider a secured loan or even a bad credit loan depending how bad your credit file is. You can check your credit file over before applying for finance of any kind and this allows you to see what the lender sees.


A hire purchase agreement could work out dearer in interest rates but if you have a deposit to put down on the car then this could help to keep down the repayments you have to make. So these factors will have to be weighed up. If you are buying a more expensive model of second hand vehicle then this could a suitable choice. The drawback to this is that the car is not yours until you have made the final repayment to the lender.


If you are looking at buying a second hand car with finance then you could take a secured or an unsecured loan as means of finance. The secured loan had the drawback that you will have to secure something of value on the amount borrowed. However you can borrow a larger sum of money and spread the cost of the repayments over a longer term. With the unsecured loan you cannot generally borrow as much and could have to repay back the loan quicker. You should always check the terms and conditions of any loan you are considering to ensure that you know how much interest you will be paying in total and how much the total amount you have pay will be. This is the only way to avoid any nasty surprises that the lender may have written in very small print on the term of the loan.

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Back to June 2009

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