Used Car Loans

 by:

Matthew Bourne

Want to buy a used car but just don't have the funds sat in your bank

account? If so, why not consider taking out one of the many used car loans

available on the loans market.

Used car loans are specifically designed by loans companies to provide

used car buyers with a competitive finance arrangement through which to

purchase a used car. Flexible loans terms are available from used car

loans companies, as well as low APR deals suitable for used car purchases.

Used car loans of up to £20,000 can be arranged on an unsecured basis,

with loans companies offering higher loans amounts if security is

supplied.

Advance plan your used car loans

When buying a used car it pays to do some advance planning and arrange

your used car loan ahead of the search for a used car. There are many

loans companies out there offering loans for used car purchases, so it

makes sense to shop around to get the best loans deals for buying a used

car. Look for car loans that are flexible to your needs and offer a low

APR, so your monthly used car repayments on any loans taken out won't be

sky-high.

As with all types of loans, you should first determine how much you can

afford to borrow on loans to buy a used car. Loans calculators are

available on the Internet and can be used to calculate loan and repayment

amounts in accordance with different APRs. It is important to take into

account other financial commitments too, including other loans, when

calculating the loans amount that you can comfortably borrow to purchase a

used car.

If you intend to buy your used car from a used car trader where they

offer car loans / finance for their used cars, then do make sure that the

loans deal you sign up to is better than the loans deal that the used car

trader can offer. The APR rate is the critical thing here. On car loans

tailored for used car purchases the APR rate - i.e. the rate of interest

you'll pay on top of the used car purchase price - can be as low as 6%.

Finance loans deals through used car traders may have a higher APR, so

pushing the total cost of buying a used car up to an unacceptable price.

One final thought. When negotiating the price of a used car with a

trader, they may accept your lower offer providing that you take up one of

their loans to finance the used car purchase. If this is an option then do

check the terms and conditions of their loans carefully, paying special

attention to the loans APR rate, as the savings from your negotiation on

your used car may not be as attractive as first imagined when you consider

the final costs attached to their loans!