Used
Car Finance

Car Loans | CarFinance 247
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Rates from 9.9% APR. Representative APR 19.9%
Car Loans | CarFinance 247
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Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We don’t charge a fee for our service, but we do earn a commission. This does not influence the interest rate you’re offered in any way.

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.

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 – with no impact on your credit score – 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 CarFinance 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

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.

0 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 wheels without paying a penny upfront.

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

Why come to us for used car finance?

For us, used car finance is all about helping people improve their everyday lives.

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

We can look to find loans for people with good credit, bad credit, and somewhere-in-between credit. We could even help if you’re self-employed or have been refused elsewhere!

Plus, you’ll have a dedicated account manager on hand to guide you through the process.

What’s next? How to apply

Whether you’re looking for a used Peugeot on PCP, a Hyundai on HP or a personal loan for a Land Rover, we could help!

It all starts with a quote. If you’re approved in principle, your account manager will give you a call to talk through your options. No strings attached. They can answer any questions you have and grant you access to our car search – a treasure trove of over 120,000 used cars ready and waiting to find a home. Found a car elsewhere? We can still help – just let your account manager know.

Frequently asked questions

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.

Find out more about the differences between financing a used car vs. buying it outright.


At CarFinance 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.


At CarFinance 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.


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.


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.


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* The UK's largest online car finance broker by unique users to the website. Based on Similar Web data – 851,826 to CarFinance 247 vs. 730,311 for nearest competitor. January to June 2022.

CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

CarFinance 247 is authorised and regulated by the Financial Conduct Authority for insurance distribution and credit broking (Firm Reference Number: 653019). CarFinance 247 is registered with the ICO (Registration Number Z1897658).

Finance is subject to status and is only available to UK residents aged 18 and over. Written quotations are available on request.

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