Buying a Used Car with Finance
Used-car finance allows you to purchase a second-hand vehicle and spread the cost over regular repayments rather than paying the full price upfront.
Finance may be available for vehicles purchased from dealerships or private sellers, depending on the lender’s requirements and the vehicle’s age, condition and value.
How Does Used-Car Finance Work?
- Set your budget: Work out what you can comfortably afford, including loan repayments, insurance and running costs.
- Choose your vehicle: Find a suitable car and check its condition, history and eligibility for finance.
- Arrange finance: Once the lender approves your application and the vehicle, the purchase can be finalised and repayments begin according to your agreement.
Can I finance a car bought from a private seller?
Yes. Some lenders finance private vehicle purchases, although additional checks and documentation may be required. Buying through a licensed dealership generally provides greater consumer protections than purchasing privately.
Is there a maximum age for a used car?
Vehicle age limits vary between lenders. Some finance older vehicles, while others restrict the age of cars they’ll accept as security. The vehicle’s condition, value and proposed loan term may also affect eligibility.
Do I need a deposit?
Not always. Some lenders offer used-car finance without a deposit, depending on your circumstances and the vehicle. Providing a deposit can reduce the amount borrowed and the total interest payable.
Can I arrange finance before finding a car?
Yes. You may be able to obtain conditional before choosing a vehicle, helping you establish your borrowing budget. Final approval will generally depend on the lender accepting the vehicle and confirming the application details.
What should I check before financing a used car?
Check the vehicle’s service history, registration, condition and identification details. An independent mechanical inspection is recommended.
A search can also identify registered security interests and may reveal whether the vehicle has been reported stolen or written off. This is particularly important when buying privately.
Search the Knowledge Base
Need Help Finding a Car?
National Loans can help you find a quality used car through our Free Car Finder Service and arrange suitable finance.