Choose Your Finance Options
Vehicle Finance Today is a credit broker, not a lender. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £6,500 over 48 months with a representative of 19.8%APR, the amount payable would be £191.62 a month, with a total cost of credit of £2,697.76 and a total amount payable of £9197.76. We are located at Old Generator House, Unit 3, Bourne Valley Road, Poole, BH12 1DZ
How Does Used Vehicle Financing Work With
Vehicle Finance Today?
You may not realise that you can get finance options on a second-hand vehicle, but this is becoming an increasingly popular choice. And at Vehicle Finance Today, we’ve worked to make the process as straightforward as possible. We’re here to help you fund a used vehicle, through several financing options.
In terms of the application process, our short online application should only take a couple of minutes to complete, and you’ll be presented with a quick loan decision. You’ll be asked for a few personal details, as well as information about your budget and vehicle finance requirements. Next, we’ll compare our network of lenders, and do our best to find a suitable vehicle finance provider for you. Even if you have bad credit, there may be options available, as many of our lenders will consider your application despite a low credit score. This is because things like your employment history will also be taken into account when making a loan decision.
Once approved, you can find a second-hand vehicle from any reputable UK dealer. And with so many makes and models to choose from, if you need any help finding your used vehicle, your lender may be able to help! When you’ve found your next set of wheels, you’ll simply need to finalise the paperwork, and drive away happy!
What Used Vehicle Finance Options Are There?
If you’re looking to buy a second-hand vehicle, there are two main types of finance available. These are Personal Contract Purchase (PCP) deals, and Hire Purchase (HP) agreements. Both options are forms of secured loan, which tends to make them more accessible than unsecured loans, particularly for those with bad credit.
Secured loans come with less risk for the lender, as the money is secured against a valuable asset, such as a home or vehicle. If the borrower is unable to keep up with the repayments, the lender would have the option of repossessing these assets. However, secured loans do come with the advantage of typically lower interest rates.
If you’re not sure whether PCP or HP is the best option for you, you can find out a little bit more about them both below:
Personal Contract Purchase (PCP) – With a PCP agreement, you’d generally pay an initial deposit, and then make monthly instalments. These would be going towards the depreciation of the vehicle, so how much it goes down in value between the start and end of your contract. You can then choose to purchase the vehicle by making a balloon payment, enter into a new PCP deal, or walk away entirely.
Hire Purchase (HP) – A hire purchase arrangement is similar to PCP in that you’d probably make an initial down payment, and then pay at a fixed monthly rate. The main difference is that you’d be paying for the cost of the vehicle, along with any accrued interest, rather than the depreciation. Once you make the final payment of a HP deal, you’d own the vehicle outright.
What Types of Used Vehicles Can I Get a Loan For?
In terms of what used vehicles you can take out on finance, the list is pretty much endless! As long as you go through a reputable dealer, anywhere in the UK, you should be able to apply for a vehicle loan. So whether you’re looking for a flashy sports vehicle that’ll make all your friends jealous, or a spacious SUV for the family, we’ll do our best to put you in touch with a suitable lender.
Tips on Buying a Second-Hand Vehicle
When buying a used car on finance, there are a few things you should keep in mind in order to get the best deal. We’ve explored the top three considerations below:
- Take Your Time: The first thing to remember when buying a used vehicle is not to rush into anything! While you might want to get on the road as soon as possible, it’s generally sensible to be a bit cautious. Find out the full history of any vehicle you’re interested in, and make sure you’re happy with all the specifications of the car. It can also be a good idea to shop around with different dealers when you’ve decided on a make and model, so you know you’re getting the lowest price.
- Boost Your Credit Score: Another thing to bear in mind when getting finance on a second-hand vehicle is your credit rating. Although you can get bad credit vehicle finance, you may wish to see if you can get a better rate by improving your credit score. You can check your score for free via sites like Credit Karma, who also offer tips on boosting your credit rating.
- Know Your Budget: It’s crucial that you know how much you can afford to pay each month towards your vehicle loan, as well as additional expenses. These will include things like road tax, insurance and fuel. You can get a good idea of the cost of vehicle finance using our handy calculator!
As long as you remember these three things, you should be able to get a great deal on your second-hand vehicle! And Vehicle Finance Today are here to help you find a suitable lender to finance your dream car – apply now with no impact on your credit rating!