Used car finance

Getting a great used car on finance is simple. Apply with Zuto today and we’ll compare 100s of finance options from 16 lenders.

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 £5,500 over 48 months with a representative APR of 19.8%, the amount payable would be £163 a month, with a total cost of credit of £2,283 and a total amount payable of £7,783.

signing for new used car

If you’re looking at second hand cars and want a way to spread your payments, there are lots of used car financing options available to you.

Finance on second hand cars is just as popular as new cars. 80% of used car buyers in the UK now use financing to help make sure they get the car they want without having to afford the full payment up front. 

The term ‘used car’ is a very broad term. It applies to everything from a 10-year-old Nissan Micra to a 2-month-old Porsche. But just like if you were buying new, the important thing is to find the right car – and the right used car finance – for your needs and budget.

The Zuto team are here to help you do just that. Whether you’ve found the car you want, or you’ve just begun your search, we work with a large panel of lenders to find used car financing deals that match your circumstances. We’ll even do a full history check on any car you choose, to make sure your new vehicle hasn’t been written off, stolen or has any outstanding finance on it.

Frequently Asked Questions

Common used car finance questions

What’s the difference between used car finance vs new car finance?

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The only difference between used car finance and new car finance is the car.

In both instances, lenders will take into account your personal circumstances and the value of the car you want and calculate a monthly payments option. The type of financing option that’s most suitable for your situation – for example Hire Purchase, Personal Loan or Purchase Contract Purchase – may vary. This is likely to be down to your personal circumstances and preferences. Factors such as how quickly you want to pay it off, how much you can afford per month and how much deposit you can put down at the start will all be taken into consideration.

If it sounds complicated, don’t worry. All you need to do is tell us a bit about yourself and what you’re looking for from your used car financing, and we’ll do the rest. After speaking to our panel of  lenders, we’ll work out the options for you and give you a call to discuss them.

Can you finance a used car?

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Many people use finance to buy used cars. Whether it’s an option that’s available to you depends on your personal circumstances. Finance on second hand cars is extremely common and helps a lot of people get on the road in the most affordable way possible.

If you’re thinking about used car financing you may have already decided which car you want, which is great news. As soon as you speak to the Zuto team we can use that information – along with your personal details – to tailor a search for finance.

If you don’t know which car you want yet, that’s not a problem. Simply get in touch and we’ll begin the process of finding out what kind of payment plan might be available based on the amount you are considering borrowing, and how much you can afford to pay each month. There’s a lot to think about when you’re buying a used car, but we can help answer any questions you have about used car finance quickly.


Is it a good idea to finance a used car?

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Used car financing is an increasingly popular way of buying a car that suits your life and your finances, but whether it’s a good idea for you depends on your personal circumstances.  If you can’t afford to pay for your car outright, but need to get on the road as soon as possible, then used car finance could be an option for you.

You’ll be able to tailor the term of the loan and monthly payments around the kind of car you have in mind.

How long does financing a used car take?

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Financing a used car varies depending on a few factors, but mostly on the car you want and your personal circumstances.

For those who apply for used car finance with Zuto using our online application form, we work to get some pre-approvals in place as quickly as possible. This means we’re able to begin searching for deals and will usually get back to you with the best options within 24 hours. Depending on your situation, we may need to ask you a few more questions.

Once you are placed with the most suitable lender and have chosen your car, the lender will request the necessary documents to complete your finance. Once these have been provided and you have signed your paperwork, we’ll complete the final checks and arrange for the money to be released to the dealer which is when you can drive away with your new car.

Can I finance a used car with no job?

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Whether you’re approved for finance on second hand cars depends on a number of things, one of which is your ability to prove that you can afford the monthly payments. Some lenders will ask to see payslips as part of the approval process, and if you don’t have a job then you won’t be able to do that, but that doesn’t always mean you won’t be approved. It all depends on your individual circumstances.

If you’re self-employed we will discuss what the lender will require to verify your income

In some cases, you may be able to ask someone else – such as a parent, who does have a job – to act as guarantor. Whatever your situation, if you want to get used car finance but don’t have a job, get in touch with our team. We’ll be able to give you tailored advice for your situation. 


Discover more about car finance types

Hire Purchase (HP)

Hire Purchase agreements are a very common form of used car finance. Essentially, with this kind of arrangement you ‘hire’ your used car from the finance company, until it’s completely paid off. When you make your final payment, ownership of the used car will be transferred to you.

Hire purchase finance

Personal Contract Purchase (PCP)

A Personal Contract Purchase on a used car is a lot like a Hire Purchase arrangement. What’s different is that at the end of the contract, you can choose whether you give the car back, part exchange or keep it. To take ownership you need to pay the Guaranteed Minimum Future Value (GMFV) (also known as a  “balloon payment”), while if you part exchange it, you can use any equity  as the deposit on your next car. Or simply hand it back to the lender. Terms and conditions apply.

Personal Loan

Personal Loans are one of the simplest ways of taking out used car finance, since no deposit is necessary, and you have full ownership of the vehicle from day one. It’s not secured against anything, which may be better for your personal circumstances. However you do have less protection against vehicle issues compared to HP and PCP.

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 £5,500 over 48 months with a representative APR of 19.8%, the amount payable would be £163 a month, with a total cost of credit of £2,283 and a total amount payable of £7,783.


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