Used Car Financing

Car Finance

Buying a new car can be expensive. As we know, next to buying a property, buying a car is going to be one of the most expensive purchases in our lives.

New cars on average can cost well over £10,000, and are more likely to cost £15,000 or more!

Not everyone can afford to buy a new car.

Besides affordability and the fact new cars are so expensive, new cars also lose value quickly.

Cars depreciate in value, meaning they go down in value.

Some cars can depreciate up to 20% in the first year, or up to 30% in the first few years. This means that a £15,000 car is only going to be worth £12,000 after the first year of ownership.

Plus there are the additional expenses associated with a car, such as the insurance. Insurance on some new cars can be expensive.

This makes looking at buying a used car more attractive. Used cars are typically less expensive, plus the depreciation factor has already been experienced.

However, financing a used car also has its own set of rules and is different than financing a new car.

There are a few differences between getting a new car loan, and a used car loan:

  • Interest rates or APR's may be lower for a new car.
  • There can be manufacturer's incentives such as "cashback" on a new car.
  • Interest rates can be slightly higher for a used car on financing.
  • The term of a loan for a used car can be shorter than a new car. Instead of financing a new car for 60 months (5 years), for a used car you may only be able to finance the car for 36 months (3 years).

You do however have the loss of the car's value already behind you when you purchase a used car. And as long as you do not need the latest and greatest car out there, and can wait a year or two for the new models to be released, buying a used car can make good financial sense.

Buddy Loans grants loans for used cars.

  • Money in your account usually within 24 hours.
  • You choose the car you like.
  • You own the car outright.
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Representative Example

Borrow
£3,250

Term
36 months

Repaying
£158.57 p/m

Total Repayable
£5,714.67

Interest Rate
41.16% (fixed)


Representative 49.9% APR.

Terms and Conditions apply. Suitable Guarantor required. All loans are subject to status and affordability checks prior to approval. All applicants must be 18 or over.

Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.