A customer searching for used cars in their My Zuto account area

Used car finance

Apply for used car finance to spread the cost of your car. Get to grips with the types of loans and find the plan that works for you.

Zuto is a credit broker, not a lender. Our rates start from 9.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £7,000 over 48 months with a representative APR of 19.3%, the amount payable would be £205 a month, with a total cost of credit of £2,831 and a total amount payable of £9,831.

What is used car finance?

Used car finance can make it easier to afford a second-hand car by paying for it each month, rather than with an upfront lump sum. There are two main types of loans for used cars:

  • Hire Purchase (HP) – one of the most common finance method for second-hand cars. This car loan splits the cost into chunks to be paid off in a set time, with interest. The vehicle is yours when the final payment is made.
  • Personal Contract Purchase (PCP) – also lets you pay monthly, but instead of the car’s total value, you pay for the depreciation – that’s the difference between what the car is worth now and at the end of the contract. A final ‘balloon’ payment is due at the end of the finance.

Both HP and PCP agreements sometimes require deposits, but Zuto also works with lenders who offer no deposit car finance.

Why choose Zuto for used car finance?

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    We work with a large panel of lenders

    With just a few details from you, Zuto can find you car finance offers from a variety of lenders.

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    We do background checks on every car

    Zuto has more than 30,000 used cars available to choose from. We’ll carry out free valuations and history checks on as many as you like.

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    No deposit options available

    If you don’t have a deposit, don't worry, that’s fine. We can work with our panel of lenders to find you a car loan which may not require one. We'll have you on the road in no time.

What second-hand cars can I get on finance?

Zuto can help you find the car you’re looking for, whether you’re looking privately or with a dealer. We’re AutoTrader’s trusted car finance partner, and work with dealerships across the UK, so whether you’re looking for a small hatchback, or a family SUV, we should be able to help you.

Buy a car privately

Our lenders can help you with private car finance. Some might need additional information, including from the seller, but this is something our team will talk you through during the process. The most common types of private car finance is either a Hire Purchase (HP) agreement or a personal loan.

Use a Zuto-verified dealer

We use a network of dealers across the UK who have been verified by Zuto. They must meet key criteria before we approve them, and all cars come with at least six months MOT and a free vehicle and history check. Zuto can look at your options available on used cars from our approved dealers at any stage of your journey.

If you find a car that isn’t from one of our approved dealers, we might still be able to help, alternatively we can assist you in finding something similar that is.

You can browse all the stock from our verified dealer network when you log in to your Zuto account (you’ll get access when you apply).

Quick tips on buying a used car

  • Take your time – Zuto knows you may want that car as soon as possible. We also know you may not want to rush into a decision. That’s why our quotes are typically valid for 28-30 days.
  • Check your credit score – it’s usually easier to get a used car loan with a good credit score, but we help thousands of customers with poor or bad credit to get car finance. We’re one of ClearScore’s trusted partners, and have tips on how to improve your credit score.
  • Know what you can afford – factor in running costs. We know that paying back car finance isn’t the only cost to consider. There’s road tax, insurance, maintenance and more. Read our guide on other costs of running a car.
  • Know what you can borrow – use our car finance calculator to see how much you could borrow. We’ll run a ‘soft’ credit check to give you a good idea of what should be possible.
  • Start searching – when you apply , you’ll be invited to register for a My Zuto account. It’s an online area where you can shortlist cars, review quotes and more. You can find out more in our help and advice section.

Car finance calculator

See how much you could borrow

Frequently Asked Questions

Does applying for car finance affect my credit score?

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Applying for a used car loan  will not affect your credit score. Our initial credit check is known as a ‘soft’ search, so it will be noted, but only you will be able to see it in your credit file. When you are happy with the finance offered , and wish to proceed, the lender may perform a ‘hard’ credit search. This is normal and is noted on your credit history. It can affect your credit score, so we will get your consent before this happens.

What mileage restrictions are allowed with used cars?

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This can depend on the finance type you choose. Hire purchase (HP) doesn’t have mileage restrictions, but personal contract purchase (PCP) typically does, as the mileage can affect the car’s depreciation. The limit is set by you and your lender – such as 8,000 miles per year – and, while requirements vary, there’s usually a penalty for each mile over your agreed limit.

Some lenders may have a maximum mileage on cars you can buy – for example, 100,000 miles at the time of financing. But don’t worry, our team can talk you through all of this once you’ve applied.

What is a verified dealer?

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A verified dealer is a dealer that’s been approved by Zuto. We only work with dealers that offer a great service. We carry out a number of checks to ensure our customers are protected when purchasing a used car from a dealer.

The advantages of car finance

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Spreading the costs out over a long period means you have more money to spend in the short term. You can potentially access low interest rates. Some deals allow you to add a warranty or service plan into their finance agreement.

The disadvantages of car finance

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The total cost of the car in the end will be more than if you pay up front straightaway. Failing to fulfil your payment plan could see your car taken away from you. Some deals only allow you to ‘lease’ the car, not actually own it. Large deposits are needed for certain loans.

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