When buying a new car, you’ll want to find the best deals and ensure the value matches the car’s condition. It's not always an easy choice, and whilst many will look for new cars fresh from the factory that have low mileage and are in great condition, not everyone can afford to do so. The used car market has always been popular for drivers on a budget, and used car loans can help to make a purchase of a vehicle even easier.
At Fast Loan UK, we’re a short term loan direct lender, and whilst they may not be suitable for purchasing a used car, they can help to cover unexpected expenses and financial emergencies. If you are in need of quick cash when your savings are low, you can click apply now to see if we may be able to help today. Our application process is fast, and you may receive same day loans if approved.
What are Used Car Loans?
A used car loan is designed to make purchasing a used vehicle more affordable so that you do not have to cover a lump sum in one go. Much like a personal loan, used car loans enable you to borrow large amounts you wouldn’t otherwise be able to afford, and repay through monthly instalments that can be for a number of months or years. Depending on the lender you choose for a used car loan, you’ll find both unsecured and secured loan options.
The difference between there is that a secured used car loan is guaranteed by the value of the vehicle, meaning if you fall into financial difficulties, the car may be repossessed. This type of loan is typically provided by car dealers, where rather than borrowing cash to purchase a car, the vehicle you purchase is put on a finance agreement. There are many different types of agreements such as hire-purchase (HP) or personal contract purchase (PCP) depending on your needs.
With an unsecured loan, this does not require any assets to be attached to the loan such as a used car. This means if repayments are missed for any reason, your car won’t be at risk of repossession as you will own it. An unsecured used car loan provides you with the cash to purchase a car outright. This means you will own the car and will then just have to maintain the monthly repayments. Some people may prefer to take out a loan to purchase the car rather than take on secured finance options offered by a dealer or car manufacturer.
Alternatives to a Used Car Loan
Whilst a loan to purchase a car can be incredibly helpful, it’s not suitable for everyone. As you will need to be able to afford the monthly repayments, and with many cars in a decent condition usually costing in the thousands, this can still be an expensive option.
At Fast Loan UK, as we do not offer cheap car loans for purchasing a used vehicle, we cannot offer this type of financial help. Ideally, you would have saved enough money to be able to afford to buy a used car, however, depending on the value and how much you can save each month, this could take a long time. It’s always best to compare your options and used car prices to ensure you are finding the best price for the used vehicle you want to purchase, and if you can avoid further borrowing to do so, this may be better for your finances.
Our affordable loan alternative is suitable in emergency circumstances only, meaning if you receive an unexpected bill you can’t pay for, or experience a financial emergency, we may be able to help with a loan today. Our loans are not designed for non-essential purchases, so using them to purchase a used car is not recommended.
Applying at Fast Loan UK For Short Term Help
If you do require our help and want to apply online today, you’ll need to meet our eligibility requirements. This ensures that we can make the application process as quick as possible if you can meet the following:
1. Aged 18 years or over
2. Current UK Resident
3. Be in Full-time, Part-time or Self-Employment
4. Receive a Regular Income
5. Have a valid Bank Account and Debit Card
As fast is in our name, we always look to provide a quick decision once you have submitted your application. We’ll look to provide a decision in principle within minutes, and then assign a Customer Care Manager to oversee your application.
Credit and affordability checks will be carried out and if we need to clarify or confirm any information received, your Customer Care Manager will give you a quick call. This shouldn’t take longer than a few minutes to complete, and if we can approve the loan, you’ll then be sent your digital credit agreement to sign.
Apply Now When You Need Funds to Cover Unexpected Expenses
As a Financial Conduct Authority (FCA) authorised direct lender, at Fast Loan UK we need to ensure a loan is affordable for you and will not cause any strain on your finances. If you are seeking used car loans, you should consider that lenders will be doing the same to ensure you can maintain the repayments throughout the loan term. Whilst we cannot help provide a used car loan, other lenders are available and may help if you have a poor credit history.
At Fast Loan UK, we welcome applicants who need emergency funds and who may have a history of bad credit. As long as we can determine the loan is affordable for you to sustain each month, there’s a good chance we may be able to help today. Click apply now to begin your application.
Please visit Money Helper if you seek further financial help and assistance.
Used Car Loan FAQs
Can I get cheap car loans online with bad credit?
This will depend on the lender you find that can provide cheap car loans. You’ll also need to consider how much you’re needing to borrow and how long you want to repay for, as this will influence the amount of your monthly repayments. Some lenders will be able to help those with a poor credit history, whilst others will require you to have a good level of credit. It’s best to compare the loan options you find, especially when choosing between unsecured and secured used car loans.
Are used car loans available for higher amounts?
You may be able to find lenders willing to provide larger used car loans, but this will be subject to status and your creditworthiness. You’ll need to consider that the higher the value of the used car, the more you will have to borrow, and the larger your repayments will need to be. Whilst you may want a higher-value used car, it’s important to ensure this won’t leave you struggling to maintain repayments. With our quick cash loans at Fast Loan UK, the maximum you can borrow on your first loan with us is £800, so you may find used car loan lenders may only be able to offer a certain amount too.
Can I use short term loans as a used car loan?
We do not recommend using short term cash loans for the purposes of buying a used car. This is because they are not designed for this type of purchase, only essential emergency expenses. Short term borrowing is for smaller amounts to be repaid over a few months. Higher value loans require longer repayment terms to ensure repayments can stay affordable each month. At Fast Loan UK, you should only apply if you are in a short term financial position and a loan will help you resolve this.