Used Car Finance: Best Deals at Concept Car Credit

Used car finance may not be rocket science. But it definitely requires a lot of research, insight and, above all, a clear head and some patience. So whatever your needs may be when it comes to buying a car and whatever your budget, make sure to show up prepared at the dealer.

To assist you in that task, here are a few points to consider if you’re looking for a great used car finance deal.

Used car finance: New kid on the block

Well, not really. But it is true that although used car finance has been around for almost as long as there are cars, it has only recently really taken off. For a long time, it would even be virtually impossible to find a lender who would be willing to provide used car finance if your model was older than four to five years!

Today, the market for used cars has probably become more important than the market for new models. This is because most models these days remain fully functional even in old age and budget restrictions are putting many new vehicles out of reach for average consumers.

Used car finance: Cheaper or more expensive?

At the same time, used car finance still tends to be more expensive than  financing for new cars. To boost sales, some car manufacturers are willing to offer extremely good deals on new cars, including zero percent deals. One of the reasons for this development is that the resale value of a car decreases quickly after its first sale.

Over the first year, in fact, it loses almost 30% of its value and this depreciation steadily continues over the entire course of its use. So by the time you get to four to five years, the bank will not have a lot of value as a security in case of a default. For this reason, terms and conditions for used car finance will always be slightly less attractive than for a comparable new car.

Used car finance: What to take into consideration

Although this may make used car finance seem unnecessarily expensive, this is by no means true per se. There are quite a few important points to consider in this regard:

• There are huge differences between a used, but still fairly new car and a really old model. In terms of financing, a 2-4 year old used car can offer excellent conditions.
• There are also significant differences in terms of used car finance between different models and brands. Particularly reliable and solid models fair a lot better here, since their value remains high for a longer period of time.
• Buying at a dealer reduces risk, since dealers will inspect and service the vehicle before re-selling it.
• Financing with a dealer may make used car finance even cheaper, since the dealer knows about all of the potential risks and value of the car. .
• New cars may be more attractive to finance, but that obviously doesn’t mean they’re cheaper. In fact, used cars are still miles ahead of them, so the trick is to find the right balance between slightly higher financing costs and far lower purchase costs.

Used car finance at Concept Car Credit

With all of the above in mind, you now have a plan for used car finance:

• Look for reliable models with a great track record in terms of quality and depreciation.
• Look for cars that are just old enough to give you a great deal, but not too old to make used car finance overly expensive.
• Buy directly from a dealer and avoid private party deals.
• Set up a cost calculation, which includes purchase costs, finance costs and running costs for a period of 3-5 years and compare a used car to the respective new model to determine which deal is best.

At Concept Car Credit, we always try to give you best value for money. We are known for our great used car deals and the expansive choice at our Manchester showroom. Do pay us a visit and we’ll give you the best deal you could imagine.