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Compare used car finance deals from across the market

Our partner Motiv works with a wide range of providers, including the big car finance brands, to help you borrow the money you need.

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What is used car finance?

What is used car finance?

Used car finance is a way of paying for a pre-owned car when you can’t – or don’t want to – pay the entire cost in cash upfront.

There are several types of car finance available, and all allow you to spread the cost through regular monthly payments. The right car finance option for you will likely depend on factors including the car’s value, where it’s sold, whether you’re keen to own it at the end of the deal, and your financial situation.

The three most common car finance options are hire purchase (HP), personal contract purchase (PCP) and car loans.

car image

Why choose used car finance with MoneySuperMarket?

We’re here to help find the right loan for you, so we’ll tell you which rates you’re guaranteed to get. 

  • It’s quick and easy

    You can see all the deals you’re eligible for in one place. This includes the type of car finance, cost per month and interest rate you’ll be charged, plus your chances of being accepted

  • It won’t harm your credit score

    We’ll run a ‘soft search’ on your finances to show you your chance of being accepted for car finance – without it leaving a mark on your credit rating 

  • Apply today

    Once you’ve compared car finance options with Motiv and decided which one is most suitable, click through to the lender to make your application  

How does financing with used cars work?

  • Choose your deal 

    Find the right deal with the help of our partners Motiv. You can compare monthly payments, interest rates and your chance of being accepted 

  • Make an initial deposit

     You’ll usually pay an initial deposit at the start of a car finance contract. The larger it is, the lower the monthly payments can be

  • Pay monthly instalments

    Make regular monthly payments during the contract. Depending on the type of finance you’ll then either own the car or have the option to purchase it 

Which option should I finance my used car with?

  • Tick

    Hire Purchase

    Pay an initial deposit and then monthly instalments for an agreed period. On the final payment, you own the car. Monthly payments can be higher than PCP or leasing. There won’t usually be mileage restrictions

  • Tick

    Personal Contract Purchase

    Pay a deposit and then regular monthly payments that cover the car’s depreciation. AT the end of the deal term you complete the purchase with one large ‘balloon’ payment or you can return the car. Charges may apply if you exceed mileage restrictions

  • Tick

    Car Loan

    Borrow the funds you need to buy a used car and clear the loan through monthly repayments. Own the car from day one with no restrictions on mileage. You’ll need a high credit score to access the best interest rates

  • Tick

    Personal Contract Hire

    A way of leasing a used car (long-term car hire) for an agreed period before handing it back to the dealership. You’ll have to pay an initial deposit. Maximum mileage restrictions will usually apply

How much does used car finance cost?

How much your used car finance will cost you will depend on a range of factors, including your initial deposit, the type of car finance you choose, the interest rate and the length of your finance deal. This table shows example monthly costs for a hire purchase plan, which are popular for used cars.

  • The amount you’re borrowing: The more you borrow, the higher your monthly payments. This can be reduced by buying a less expensive used car or by putting down a larger deposit

  • The term of the deal: The longer the term, the lower your monthly payments. But you could pay more overall in interest. Typical terms for car finance are three to five years

Get an idea of your used car finance costs with our car finance calculator.

Hire purchase cost example 

36 Month Example

60 Month Example

Car Price






Representative APR



Option to purchase fee



Monthly cost



Total cost of credit



Source: Motiv Finance. Representative 12.9% APR

How to get the best used car finance deal

  • Set your budget

    Decide how much you can afford to put down as an initial deposit and what you can pay in monthly payments

  • Decide which car finance option suits you best

    Choose your car finance option, taking into account affordability and whether you want to own the car at the end of the term

  • Check there are no errors on your credit file

    The best finance deals are reserved for those with excellent credit scores, so check your credit report to fix any mistakes before you apply

  • Compare from a range of deals

    Whether you’re choosing HP, PCP or a car loan, it’s worth shopping around to find the best solution for you

Compare used car finance with MoneySuperMarket 

We’ve teamed up with our partner Motiv to help source the right car finance option for you. Compare across the market to find a deal to suit you best

  • Make your choice

    Decide which car finance option is right for you, from HP to PCP to taking out a personal loan

  • It doesn’t take long

    Just let us know a little about you and what you’re looking for and we’ll do the heavy lifting to search the market

  • Compare car finance

    You’ll be able to sort car finance options by overall cost and the likelihood you’ll be accepted, then you can apply with confidence

You should be able to pay off a used car finance deal early, but there might be a penalty charge depending on the terms and conditions. Generally, the further into the deal you are, the less you will have to pay if you wish to end it early.

Used car finance is still an option for those who’ve struggled with credit in the past.  Hire purchase may be the best option for someone with bad credit. This is because the finance is secured against the car so there are typically more options available than with a personal loan, which is unsecured. 

However, if you do have a low credit score you’re likely to have less choice of finance deals and face higher interest rates, so be sure you’re comfortable you can meet the repayments.

Typically, you’re more likely to find 0% finance deals available for new cars. They tend to be rare for used cars. That said, you may be able to get 0% car finance at a dealership on a used car, so it could be worth shopping around. If you do see a 0% finance deal, make sure it is as good as it appears. If the car price is higher or there are hidden charges in the contract, you may end up paying as much if not more than on a regular car financing deal.

A used car should be cheaper to finance than a new car because the vehicle is worth less, so you do not need to borrow as much. A used car might also depreciate in value more slowly than a new car, helping reduce the cost of financing. 

Yes, with car financing your monthly payments will usually be fixed for the agreed term. You can reduce your fixed monthly payments by putting down a bigger deposit or opting for a longer contract length.

MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.

  • Take control of your credit score by checking and improving it for free with Credit Monitor

  • Never overpay again with Energy Monitor, our energy monitoring service

  • Over 50 ways to Get Money Calm

So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.

But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.