Used Car Finance

Get a Quote Does Not Affect Your Credit Score

Rates from 6.9% APR. Representative 21.4% APR

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No Obligation
No Fees
Quick decision

4 Years

48 monthly repayments


Best available rate 6.9%

Total cost of credit £1,069.12

Total repayment £8,569.12

48 monthly repayments


Best available rate 6.9%

Total cost of credit £1,069.12

Total repayment £8,569.12

Representative example:

Borrowing £6,500 over 48 months with a representative APR of 21.4%, an annual interest rate of 21.4% (Fixed) and a deposit of £0.00, the amount payable would be £196.24 per month, with a total cost of credit of £2,919.52 and a total amount payable of £9,419.52

Simple Used Car Finance Deals from 6.9% APR

Taking our car finance allows you to spread the cost of your next car across a number of months. Applying for used car finance through ChooseMyCar will allow you to walk into a car dealership just like you’re a cash buyer - knowing you’ll have the very best car finance deal in your pocket. We offer car finance from as little as 6.9% APR depending on your credit rating. Apply for car finance today, and there is absolutely no obligation, we do not charge any fees, and we can provide you with a quick decision. We even have options for those who may have bad credit

At ChooseMyCar we know that car finance, and all the different types on offer can be confusing for people. We’re here to make the process of finding the right finance solution for your situation goes as smoothly as possible. Below, we’ll look into the different options available and giving you all the information you need to choose the right one for your needs.

Best Used Car Finance Deals

We've put together a handy table to let you see, at a glance, which finance option is the best one for you.

Hire Purchase Personal Contract Purchase Personal Contract Hire Personal Loan
Requires initial deposit Usually requires deposit Usually requires deposit Usually requires deposit
You own the car outright
Car is yours at the end of the agreement
Fixed monthly payments
Optional balloon (final payment)
Excess mileage charges
Secured against an asset (eg. car)

What are the different types of used car finance available?

Used car finance comes in a number of different forms; you've more than one option. While it may feel like these are endless, and even a little daunting, there’s actually less than you’d think. HP. PCP. PCH. So what do they all mean? And which one is the right one for you?

PCP - Personal Contract Purchase

Return and exchange car finance services

PCP is a type of secured car finance offered by many car dealerships, high street banks, and specialist lenders. You'll pay an initial deposit on the car, followed by monthly payments, with an optional balloon payment at the end of the term if you want to own the vehicle.

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HP - Hire Purchase

Hire purchase HP car finance

ChooseMyCar are specialists in Hire Purchase Agreements. When you take out a hire purchase agreement, you'll own your car outright at the end of the term. It's not necessarily an automatic process; some lenders may require a final fee, but this can be as little as £1.

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PCH - Personal contract hire

Leasing a car could be an excellent option if you are fine with never having the option to own the car. It's not quite the same as hiring a car but works in a similar way; you agree to pay to use the car for a set period, then return the car.

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PL - Personal loan

car finance icon

A personal loan may be a good option for financing a car if your credit score is not ideal. This type of finance is unsecured - so there is no risk of losing the car. Lenders typically mitigate that risk by setting a higher APR (compared with a secured loan).

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Why ChooseMyCar Car Finance?

With deals from a wide range of lenders, ChooseMyCar is the perfect place to find car finance to suit your needs and circumstances.

  • No deposit finance available
  • Flexible repayments
  • Poor credit finance accepted
  • All circumstances considered
  • Easy online applications
  • Fast decision

What to consider before applying for Used Car Finance

  • You will need to go through a credit check. 
  • Before applying for car finance you should make sure you have checked the affordability of your chosen option.
  • Once you’ve passed a credit check it’s still on you to make sure you have the money to make the monthly payments for the whole term of the loan.
  • You may also need to save for a deposit upfront in addition to the monthly payments.
  • Some types of car finance will come with mileage allowances and if you go over these you will be charged.
  • Maintenance doesn't always fall on you but for those that it does, you’ll need to return your car in a good condition to make sure you avoid any additional charges.

Frequently Asked Questions

This will vary depending on the type of car finance and your own credit score. Below are some representative examples of good APR rates for the different types of car finance:

Hire Purchase: 9.46%
Personal Contract Purchase: 5%
Personal Loan: 2.8%

The above are purely representative and are based on a good credit rating.

While you won’t need a good credit score to flat out buy a car, it can affect things if you want to get car finance. Overall the better your credit rating the better deal you’ll get on your car finance.

A poorer credit score may mean you are either denied car finance altogether by some lenders or else face higher interest rates or monthly repayments. That shouldn’t put you off though, at ChooseMyCar we are experts in bad credit car finance and can even help people with CCJs or IVAs get car finance. For more information on raising your credit score, check out our guide.

The amount you can afford to spend on a car will vary depending on your situation. The important thing is to make sure you can afford any repayments that your car finance agreement sets out. Missing repayments can cause issues between you and your lender and could end up in court or affecting your credit rating. 

To work out what you can afford, try our car finance calculator.

Generally paying a large deposit upfront can reduce the cost of your monthly repayments. This isn’t the case for every type of car finance however and in many cases no deposit is needed. We’ve put together a guide on no deposit car finance and on how much your car finance deposit should be.

The length of a car finance agreement will vary for a number of reasons. The overall length of a term is usually measured in 12 month increments. 

These terms usually start with a minimum of 24 months (2 years) upt to a maximum of 96 months (8 years). Generally terms for used cars are shorter than those for long cars. 

While the monthly repayments will likely be lower on a longer term plan, it’s worth working out how much interest you’ll pay if you opt for something over a longer period of time.

The overall cost of car finance will vary depending on the type of car finance that you choose. 

The cost of getting a car on finance will be the overall cost of the car, plus any interest owed over the term agreed. 

For a personal contract hire agreement it’s worked out slightly differently; the amount you pay is calculated by the cost of the depreciation of the car over the term agreed. 

Some types of car finance may also include fees for excessive mileage, any damage to the car or a maintenance cost, so keep an eye out for this. 

If you want to find out what you can afford, check out our car finance calculator.

A voluntary termination agreement lets you cancel your car finance early. By law, you can voluntarily terminate a HP or PCP contract.

You can cancel HP and PCP agreements if you''ve paid back 50% of the total finance amount - and if the car's in good condition. The PCP balloon payment is included in the 50% - so you''d have to pay half of this too.

Not repaid enough yet? You may be able to pay the difference up front and then cancel the contract. But if you terminate after you''ve already repaid over 50%, you won't receive a refund.

Bear in mind, voluntary termination may appear on your credit file. But it probably won't affect your score.

Selling your car with outstanding finance depends on the type of car finance you have.

On a hire purchase agreement you technically can't sell your car, but if you've repaid 50% you may be able to return it to your lender, or else pay the remaining fees before you sell it on.

On a PCP agreement it works in the same way as the hire purchase in terms of returning it. However, as you'd have to opt in to owning the car at the end with the additional cost of the balloon payment.

You can sell a car on a personal loan agreement, but it will still be on you to make the repayments from the original agreement.

You cannot sell your car on a personal contract hire agreement as it's never yours to sell.

Your credit file is checked if you apply for car finance. And you'll usually have to provide proof of ID, address, and income. The specific documents you'll need ultimately depend on the finance provider you go with.

Providers will check your credit score when you apply - initially via a soft search. They'll perform a hard credit check if you choose to enter into a contract with them. Most lenders will need to see your driving licence - full or provisional. You may also be asked to provide:

  • Your passport - for proof of ID
  • Utility bills or council tax letters - for proof of address. These usually need to be dated within the last three months.
  • Payslips - for proof of income and to make sure you can afford the payments. Some providers may ask to see a few months' worth.

A mileage allowance is used for PCP and PCH car finance deals. This is the number of miles you can use your car for annually before being charged.

It will be written in to your contract and the number based on your estimated annual mileage, so give yourself a cushion in case your circumstances change and your mileage increased.

If you go over your mileage you will have to pay an additional fee.

Not all car finance deals include maintenance plans and they are usually an optional extra.

Maintenance plans are an additional fee that can be used to cover services and maintenance to your car. It’s worth working out whether you can afford to do this and whether it’s financially beneficial over the costs of paying maintenance yourself.

Keep in mind that some car finance deals expect you to return the car in good condition at the end of the term.