Car Finance Guide

What is used car finance?

Used car finance is a way to spread the cost of a vehicle over an agreed term. The exact agreement, monthly payment and ownership position depend on the finance product and lender.

Common types of finance

Common arrangements may include hire purchase, personal contract purchase or personal loan products. The right option depends on the lender, vehicle and your circumstances.

What affects finance approval?

Lenders may consider credit history, income, affordability, employment, address history, deposit, the vehicle and other information. Finance is subject to status, affordability and lender approval.

What information might lenders ask for?

You may be asked for personal details, address history, employment information, income and expenditure, bank details and identification.

Deposit and monthly payments

A deposit can reduce the amount borrowed. Monthly payments should be affordable alongside insurance, tax, fuel, servicing and other motoring costs.

Part exchange and finance

Your current car may be used as part of the deposit where suitable. If it has outstanding finance, a settlement figure will usually be needed.

Things to check before applying

Check the total amount payable, term, interest, fees, mileage conditions where relevant, early settlement options and what happens if your circumstances change.