Can I Get a Used Car on Finance?

Used cars can be bought on finance and you can choose from a number of contract options. The most common finance arrangements are Hire Purchase (HP) and Personal Contract Purchase (PCP).

Many dealers offer these two agreements on both new and used cars. For each contract type, you would have to pay an initial deposit, followed by monthly payments.

Before signing a contract, ensure that you have considered every available option and whether or not you will be able to repay the costs that each finance contract demands.

What is Used Car Hire Purchase (HP)?

With this method, you will pay for your used car with an initial deposit and will then pay monthly sums over an agreed period of time. When this time is up, you will be able to own the car and keep it, or sell it on.

How much you pay each month is dependent on the amount of deposit you put down to start with, the car’s price and the finance length. The larger the deposit paid, the less the monthly payments will be. Once you have made the final payment, the car is yours. Until the agreement ends, however, you cannot sell the car on without the dealer's permission.

What is Used Car Personal Contract Purchase (PCP)?

This method is similar to HP in that it involves an initial deposit and a specific number of monthly payments. Although, with PCP, the monthly repayments will be significantly lower and you will not get to keep the car at the end of the contract unless you pay a large fee, known as a balloon payment.

The deposit and regular payments will be dependent on the car's cost and the price the dealer expects to sell the motor for once returned.