Why Used Car Finance Could Be Your Best Option When Buying Your Motor

Sep 27, 2021 | All About Cars | 0 comments

Why Used Car Finance Could Be Your Best Option When Buying Your Motor

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The cost of buying a brand new car can be extremely expensive, however, buying a used car on finance can be a great way to find a cheaper way to get on the road. As soon as you drive a brand new, shiny motor off the forecourt, it instantly decreases in value and continues to do so rapidly. Therefore, if saving money is an important factor in the decision making process for you, then buying a used car on finance could be the way to go. 

Financing a used car through a dealership means there will be more options, whereas when purchasing privately you are limited. Buying with a dealer like us also gives you reassurance about the quality of the car you’ll be purchasing. At LMC we have a dedicated used cars section featuring stunning models from family cars to luxury cars, all with low mileage. We also partner with the AA, and they or an independent third party will always thoroughly inspect a vehicle before you buy.

As well as that, coming to a dealership gives you more finance options such as hire purchase (HP), and personal contract purchase (PCP). Hire purchase is often the most common finance method used to purchase second-hand cars. In short, this method splits the car loan cost into chunks to be paid off in a set time, with added interest. The vehicle is then yours when the final repayment is made. On the other hand, a personal contract purchase is typically used when buying a brand new car but is great for used cars too. This method also allows you to pay monthly, but instead of paying for the car’s total value, you pay for the depreciation. Depreciation is the loss in value of the car over time. A final balloon payment is then due at the end if you decide you’d like to keep the car. Even if you have bad credit finance, we consider this option for you too. 

Used car finance makes it easier to afford a second-hand car by paying for it each month, rather than with an upfront lump sum. In general, you can get low monthly payments on older used cars up to a few years old, but it’s important to try and get a good credit score before you make any applications as you’re likely to get better rates. 

LMC can help you to find the best-used car finance in Essex, simply use our finance calculator to get an estimate on how much you can borrow.