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 8.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £8,000 over 60 months with a representative APR of 19.0% the amount payable would be £201 a month, with a total cost of credit of £4,064 and a total amount payable of £12,064.
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:
Both HP and PCP agreements sometimes require deposits, but Zuto also works with lenders who offer 0 deposit car finance options.
With just a few details from you, Zuto can find you used car finance deals from a variety of lenders.
Zuto has more than 40,000 used cars available to choose from. Before committing to second-hand car finance, we’ll carry out free valuations and history checks on as many vehicles as you like.
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 used car loan which may not require one. We'll have you on the road in no time.
There are a number of factors that can impact the cost of finance for a used or nearly new car including:
To get a better idea on how much second-hand car finance may cost, you can use our used car finance calculator.
When it comes to securing a used car finance deals, here’s how it works with Zuto:
Use our easy online application to tell us some details about yourself and how much you’d like to borrow. We’ll check with our panel of lenders and give you a quick decision then let you know your options.
Whether you’ve already got a car in mind, or you want to browse from our network of verified dealers, we’ll run background checks on any car you’re looking at.
Once the final checks are completed and you’re happy with the details, we’ll take care of everything. We’ll handle the paperwork with the lender and pay the dealer - you simply need to collect the car.
Zuto can help you find your ideal used car, 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.
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 HP car finance agreement or a personal loan.
We use a network of dealers across the UK who have been verified by Zuto. They must meet key criteria before we approve them (including a comprehensive background check and credit history analysis), and all cars come with at least six months MOT and a free vehicle and history check. Zuto can look at the used cars on finance available from our approved dealers at any stage of your journey.
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). Here, you’ll be able to search for a car model, comparing finance options, vehicle information, and historical driving data.
If you’re considering buying a used car on finance, here are some top tips from the experts.
Discover some of the most commonly asked questions around used cars and finance.
Applying for a used car finance deal will not affect your credit score. Our initial credit check is known as a ‘soft’ search, so your rating will be noted by our lenders, but only you will be able to see the soft search in your credit file so it will not impact your credit score.
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.
Mileage restrictions can depend on the type of car finance 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 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.
A verified dealer is a dealer that’s been approved by Zuto. We only work with dealers that offer a great service. We also carry out a number of checks to ensure our customers are protected when purchasing a used car from a dealer.
Spreading the costs out over a long period means you have more money to spend in the short term, and you can potentially access low interest rates. Some deals also allow you to add a warranty or service plan into their finance agreement.
The total cost of the car, in the end, will be more than if you pay the value up front straightaway. Failing to fulfil your payment plan could also see your car taken away from you, and some deals only allow you to ‘lease’ the car, not actually own it. Additionally, certain loans require large deposits.
Yes, you can find used car finance deals with no deposit required. Zuto collaborates with lenders that offer finance for second-hand cars without requiring an upfront payment, allowing you to secure a used car on finance even if you don’t have savings available.
To apply for finance on a used car, complete an online application with Zuto. You’ll provide details about yourself and your financial situation, and Zuto will search for the best used car finance rates from its panel of lenders to find a deal that suits you.
No, applying for used car finance will not affect your credit score. Zuto performs a 'soft' credit check during the initial application, which only you can see. If you proceed with a used car finance deal, the lender will then conduct a 'hard' credit check, which may impact your credit score.
Most lenders allow you to settle your used car finance agreement early. You may incur an early settlement fee, but doing so can save you on interest costs over time. It’s advisable to check the terms of your agreement regarding early repayments.
Yes, you can use car finance on second-hand cars purchased from private sellers. Zuto can assist you in securing finance for a used car in this scenario, although additional checks may be needed from the seller. Our team will guide you through the process for financing a used car privately.
