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 10.6% 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 20.9% the amount payable would be £208 a month, with a total cost of credit of £4,486 and a total amount payable of £12,486.

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:

Both HP and PCP agreements sometimes require deposits, but Zuto also works with lenders who offer 0 deposit car finance options.

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 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.

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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 your ideal 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.

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 HP car finance 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 (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.

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 for used cars on finance 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 also help customers with poor credit car finance. We’re also one of ClearScore’s trusted partners, and have tips on how to improve your credit score if you have been refused car finance.
  • Know what you can afford: Paying back car finance isn’t the only cost to consider, so factor in running costs. There’s road tax, insurance, maintenance, and more.
  • Know what you can borrow: Use our online car finance calculator to see how much you could borrow when applying for second-hand cars on finance. 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. Find out more about creating an account.

Car finance calculator

See how much you could borrow

Frequently Asked Questions

Discover some of the most commonly asked questions around used cars and finance.

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 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.

What mileage restrictions are allowed with used cars?

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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.

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 also carry out a number of checks to ensure our customers are protected when purchasing a used car from a dealer.

What are the advantages of used 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, and you can potentially access low interest rates. Some deals also allow you to add a warranty or service plan into their finance agreement.

What are the disadvantages of buying second-hand cars on finance?

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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.

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