Buying a car is a big decision, but it doesn’t have to break the bank.
Purchasing a used car on finance is a smart and accessible way of getting behind the wheel. In fact, in 2023, out of the 9.14 million cars sold in the UK, 7.24 million were used – it’s clear the majority of drivers recognise the benefits outweigh those of brand-new models.
Whether you’re a new driver, or are looking to upgrade without overspending, this blog gives you all the information you need – including the benefits of used cars to the types of finance available – to help you make the right decision for you.
Benefits of used cars
Used cars come with an array of benefits, that often overtake those of brand new models.
Let’s take a look:
Cost
The lower price point is probably the most talked about benefit of used cars.
Even if there’s only been one previous owner, you’re looking at paying considerably less for a used car, allowing you to make the purchase without breaking the bank.
Going down the used route means you can get behind the wheel at a price that suits you.
Lower insurance costs
Insurance rates are generally lower on used cars due to the lower replacement and repair costs.
Compared to new cars that have a higher initial value, used models have experienced significant depreciation, bringing insurance costs down.
Cheaper finance deals
If you were to get a used car on finance, you’re guaranteed to spend much less each month, compared to if you were to finance a brand new car.
Reduced environmental impact
Reducing the demand for manufacturing lowers the environmental cost associated with car production, making used cars much more eco-friendly.
Wide selection and availability
Used models offer a wide selection, in various models, makes, years, and engine types. This gives you more choice, especially if the model you’re interested in is no longer in production.
What is car financing?
Car financing is a way of paying for a car in monthly instalments, rather than paying the full price at once.
People favour it if they don’t have a lump sum to buy the car outright, or if they don’t want to take out a loan.
Types of used car finance agreements
Hire purchase (HP)
This is when the total cost is split up, which you pay back in monthly instalments.
The length of the agreement (e.g. 18 months, three years), will determine the amount of the payments. And, at the end of the agreement you own the car.
Personal contract purchase (PCP)
Often the cheaper option of the two, PCP includes monthly repayments and an optional balloon payment at the end of the agreement to own the car.
Alternatively, you can trade in the car for a different model, or simply return it to the dealer.
How does financing work on a used car?
Used car finance doesn’t have to be complicated.
To get the best value for money, and a reliable car, make sure to visit used car finance experts – like Concept Car Credit.
They’re committed to supplying the highest quality used cars on the market, spending millions on reconditioning cars to ensure all customers have a quality driving experience.
All you need to do is apply online, or visit their showroom, and you can be driving off in your used model in less than one hour – regardless of credit score and finance experience.
