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Used Car Finance

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Rates from 8.9% APR. Representative APR 19.9%.
Car Finance 247 Limited is a credit broker, not a lender.
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ford fiesta

Rates from 8.9% APR. Representative Example 19.9% APR. Hire Purchase (HP) Example: Borrow £10,000 over 5 years with a £0 deposit. Representative APR 19.9% fixed rate. Monthly payment: £255.50. Option to purchase fee £10 payable. Total cost of credit: £5,340.00. Total amount repayable: £15,340.00.
Car Finance 247 Limited is a credit broker not a lender.

Rated 'Excellent' by our customers

Used car finance made easy

Looking for second-hand car finance? We’re here to help.

Buying a used car shouldn’t be complicated. That’s why we’ve shaken up the system; with us, you can get your car finance sorted first and then choose a car with confidence.

The best bit is, we’ll do all the heavy lifting too. We’ll find you the best deal from our panel of lenders and pair you with a dedicated account manager to guide you through the process and take care of all the admin.
Apply now to get your decision in minutes

Can you finance a used car?

Yes! Finding finance for a used car is very similar to financing a new car and allows you to spread the cost of your car into affordable monthly repayments. Get a quote and you could be driving away in your new wheels within days!

Why should I use finance for buying a used car?

Depending on your individual circumstances, using finance to buy a used car could be the right choice for you:

  • You can spread the cost of your car into manageable monthly payments
  • You might not have to put down any money for a deposit upfront
  • If you apply with Car Finance 247, you can sit back and relax while we do the hard work for you

Find out more about whether buying a car outright or on finance is right for you over on the blog
Apply now to get your decision in minutes

Used Car Finance Calculator

£
£3,000£200,000
£
Term
Finance type
Vehicle price£10,000.00
Deposit£1,000.00
Amount to finance£9,000.00
APR
11.9%
Optional final payment*£4,589.42
Option-to-purchase fee£10.00
Total cost of credit£3,132.45
Total amount repayable£13,132.45
47 monthly payments of£160.49
*Optional final payment includes a £10 option-to-purchase fee. Annual mileage limit of 10,000 miles, excess mileage fee of 8p/mile.
Rates from 8.9% APR. Representative APR 19.9%.
Personal Contract Purchase (PCP) Representative Example 12.9% APR: Car price £25,000.00, Term 4 years, Deposit £2,500.00, Total amount of credit £22,500.00, Representative APR 12.9% fixed rate, Monthly payment £394.69, Option to purchase fee £10 payable, Total cost of credit £8,738.50, Total amount payable £33,748.50, Optional final payment £12,688.07, Annual mileage 8,000pa.

What types of used car finance are available?

Here at CarFinance 247, we work with a panel of lenders who offer a range of different finance options. Even so, there are two main types of car finance: Hire Purchase (HP) and Personal Contract Purchase (PCP).

Hire Purchase

With Hire Purchase (HP) you’ll essentially hire the car from the lender during your agreement and won’t own it outright until you’ve finished making all your repayments (including the Option to Purchase fee).

As you’ll own the car at the end of your agreement, monthly payments can be higher than with other options but there are typically no mileage restrictions and you can choose to pay a deposit upfront, which could reduce the amount you pay each month. 

Personal Contract Purchase

A Personal Contract Purchase (PCP) deal differs from HP because it gives you options. At the end of your PCP agreement, you can choose to hand the car back, use any positive equity as a deposit in a new deal, or buy the car by paying the balloon payment.

Unlike HP, you may also be subject to restrictions. You’ll need to agree a set mileage and you might face additional charges if you exceed this annual limit or end up with any bumps or scrapes on the car.

Used car finance options also include:

Personal loan

With a personal car loan, you can borrow money for a fixed time period, and you’ll own the car as soon as you pay the dealer. If the loan is unsecured, you’ll be able to do whatever you like with the car – modify it, sell it, or take an epic roadtrip! Double-check the terms of your agreement though and make sure you continue to make payments, even if you do decide to sell.

Guarantor loan

While we don’t currently work with lenders that can provide a guarantor loan, this could be an option if you have a poor credit rating or no credit history.

This type of loan requires a third party – usually a close friend or family member – to act as your guarantor. If you fail to make a payment, the guarantor will have to pay it on your behalf.

While guarantor loans can help people with bad credit get car finance, they can also come with a higher APR and your guarantor will be responsible for your debt, if you fall behind on payments.

Zero deposit used car finance

No deposit, no problem! We work with a panel of lenders and several of them can offer used car finance with no deposit. Depending on your individual circumstances, you could be drive away in your new car without putting any money down upfront.
Apply now to get your decision in minutes
From our expert
“Used car finance is a fantastic way of securing a car without breaking the bank. With flexible payment options and lower upfront costs compared to new cars, it can provide you with the perfect balance of affordability and choice.”
Matthew Evans
Matthew Evans
Head of Content and Conversion

Why trust our used cars

Our car search is home to over 100,000 used cars from reputable dealers. And if you’re buying a car from one of our Marketplace sellers, you can trust that they meet our rigorous standards. You’ll find a star rating – generated from real customer reviews – on every listing from a Marketplace seller, so you can make an informed decision on your used car.

Tips for buying a second-hand car

Buying a used car is very different to buying a brand-new vehicle. Depending on the age of your second-hand car, some wear and tear is to be expected and you might not have the comfort of an extended warranty to fall back on. That’s why it’s important to carry out checks when you visit the dealership or receive your car.

Here are a few things to double-check when buying a used car:

  • Check the car’s exterior and interior – look out for dents and scratches, signs of repair, rips in the upholstery and faulty electrics
  • Go under the hood to check the fluid levels
  • Take a test drive to check the clutch, listen for any unusual noises, and see the exhaust fumes
  • Check over the documentation – ask to see its service history, handbook, and V5C registration form

Find out more with our full used car buying checklist
Apply now to get your decision in minutes

Why choose us for used car finance?

A helping hand

At Car Finance 247, used car finance is all about helping people improve their everyday lives. We understand that building a good credit score isn’t always easy, and we believe that people should not be penalised for past mistakes. Unfortunately, some individuals find themselves trapped in a cycle, hindered by the lack of a vehicle, impeding both their commute to work and their ability to improve their credit score.

Dedicated account manager

Plus, you’ll have a dedicated account manager on hand to help guide you through the process, so there’s nothing to worry about.

Finding you the best deal

Whether it’s sorting out the school run, getting that big boot for the big shop, or a car you’re proud to park outside the office, we’ll work to find you the best deal from our panel of lenders, even if you have bad credit.

Making car finance simple for 450,000+ customers

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It was stress-free, really helpful and I would definitely recommend
Hannah Bought a Fiat 500
Very good customer service, very quick and simple. Definitely would recommend using them, very happy
Molly
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It was a pleasant experience, I'd recommend them to anyone
Michael Bought an MG HS
It was so easy and hassle free, most of it done over WhatsApp which was really good for me with working long hours. And the staff were fantastic.
Overall very happy with the service
Jack
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Everything was clear and explained perfectly
Kudzai Bought a Ford Focus
My experience was really great with these guys. Easy quick and effective. Kept me in loop all the way and got me finance approved when everyone else couldnt. Highly recommend them.
Harjinder

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Frequently Asked Questions

  • Is it a good idea to finance a used car or buy outright?

    It’s a good idea to buy a used car on finance if it’s the best option for you and your circumstances. If you have savings in the bank, buying the car outright could be the cheapest and easiest option, especially if you plan to keep it for a long time and aren’t worried about depreciation. However, if you don’t have the funds to pay for it in one go, would like to change car regularly, or want to hand it back after a few years then a finance option like PCP could be a better choice.

  • How long can you finance a used car?

    At Car Finance 247, we work with a panel of lenders who can help people finance a used car for up to five years or 60 months. There are pros and cons to have a longer loan term: it could mean you have lower and more affordable monthly repayments, but you may end up paying back more overall due to the added interest.

  • How does used car financing work?

    At Car Finance 247, the used car finance process starts with a no obligation quote. Once we receive your application, we’ll look to find you the best deal from our panel of lenders. If we find you an approval in principle, your account manager will give you a call to discuss next steps. They’ll guide you through the process, take care of all the admin, and even negotiate with the dealer on your behalf.

    You can choose a used car from any reputable dealer or check out our car search – home to 100,000 vehicles. We’ll then carry out all the checks, chase the lender, and make sure the dealership is kept in the loop so you can just sign on the dotted line and drive away.

  • How much should you put down on a car?

    There’s no set amount that you should put down on a car but a deposit of at least 10% is usually considered good. Even so, no deposit car finance is available if you don’t have money saved or you could put down a larger deposit to reduce the amount you need to borrow. A large deposit could reduce your monthly repayments or mean you can choose a shorter loan term. It’s important that you only put down an affordable deposit, so you still have money available to cover costs like tax, insurance, fuel, and any ad-hoc repairs.

  • Does financing a car hurt your credit?

    Financing a car can impact your credit score positively or negatively depending on the type of borrower you are. You could see your score dip slightly when you first take out a car loan as you’re adding a large new debt to your file but, if you keep up with your repayments, this could help you improve your credit over time. However, if you miss payments or pay late then that could negatively affect your credit.