Buying a Used Car: Your Complete Guide to Finance

Buying a used car is no simple decision! From buying outright, to buying on finance, there are many options to consider. But don’t worry, here at Pulman we are here to help!



So first up, can I buy a used car on finance?

Getting a car on finance helps you spread the cost of a used car over a series of monthly payments, the most common being PCP and HP agreements. Both of these finance types will require you to pay an initial deposit followed by a set number of monthly payments. 

As with all finance agreements, you'll have to carefully consider whether you can afford the monthly payments before you sign a contract. If you have any concerns you can give a member of the Pulman team a call - we are always happy to help! 


What is used car Hire Purchase Finance?

If you buy a used car using Hire Purchase (HP) finance you'll pay an initial deposit and a number of monthly payments over an agreed period. The amount you pay each month will depend on the car's price, the size of the deposit and the length of your finance term. If you pay a large deposit, your monthly payments will be reduced and vice versa.

Pro: Once you have made the final payment, you will own the car to keep or sell on. 

Con: HP finance comes with finance agreements eg. mileage caps.  if you exceed this limit, or return the car in poor condition, you may have to pay a bit extra.  


What is used car Personal Contract Purchase (PCP) finance? 

Similarly, used car PCP finance requires you to pay an initial deposit and a set number of monthly payments. The deposit and monthly payment amount will depend on the car’s price. At the end of this, you can either pay a lump sum (balloon payment) to purchase the car outright, return the vehicle or sell it privately to pay off the remainder

Pro: This suits people who want to change their car frequently, and is based around a minimum guaranteed future value for the car. 

Con: PCP finance agreements include mileage caps too - if you exceed this limit, or return the car in poor condition, you may have to pay a bit extra.  


Can I finance a used car with a bank loan? 

Bank loans can be used to finance used cars in the same way as a brand-new model. The interest rate and the amount you'll have to repay each month will be set by the bank.

Pro: The type of personal finance could suit you better if you don’t have enough set aside for a large deposit. Unlike the other finance types mentioned, you'll be free to sell the car on at any point 

Con: Using brand finance, for example, Volkswagen Financial Services, means you could receive additional benefits such as lower interest rate.

Why Choose Pulman Used Cars? 

At Pulman you're not only guaranteed the perfect used car, but also a fantastic customer experience. With showrooms across Durham and Sunderland, we are a family run retailer offering a great selection of used vehicles and much more. Whether you're looking for the car of your dreams, or service, repair and maintenance options, Pulman Used Cars can help you every step of the way. You can find all of our used stock here


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