When you’re looking to buy a car, you may find that you don’t have enough funds to cover the cost. If you want to buy a car urgently, whether it’s for work or family life, you may need a helping hand to buy the vehicle. That’s where a used car loan comes in. This type of loan could give you fast access to cash to help you purchase a car if you wouldn’t otherwise have the spare cash to cover the purchase.
While used car loans can give you fast access to funds, it’s important that you understand the advantages and disadvantages of a used car loan before you apply for one. As a broker rather than a direct lender, Tendo is committed to matching customers with the best loans for their personal and financial circumstances. In this guide, we’ll take you through what’s involved with a used car loan, including your financial responsibilities and how to apply for one if you think it’s the right choice for you.
What is a Used Car Loan?
A used car loan is a type of short term loan that can provide you with cash to cover the purchase or maintenance of a used car.
The key characteristics of a vehicle loan for used cars include:
- Short term repayments: you can borrow a used car loan for a period of 3 to 36 months
- Higher interest rates: used car term loans tend to have higher interest rates than traditional loans
- Online application: apply for a vehicle loan for used cars using our simple online form
While used car loans can give you fast access to cash, you need to borrow responsibly and make sure you can meet the repayment terms.
How do Used Car Loans work?
With the help of Tendo, the lending process to get a car loan for used cars is quick and simple. We have a simple online form that you can fill in to apply for a used car loan and we’ll use it to match you with a panel of over 50 lenders.
After you are provided with a quote, you’ll need to e-Sign the agreement before the funds will be transferred to your account. In most cases, the funds will be transferred to your account within a few minutes of signing the agreement.
Can I apply for a Used Car Loan today?
You need to meet certain lending eligibility requirements to be approved for a car loan for used cars. Applicants need to be at least 18 years old, a UK resident and employed, with a minimum net income of £500 per month. You also need a bank account that your income is paid into, and you need to have an email address and phone number. In some instances, lenders may require additional information from you to support your application.
Once you’ve decided you’re happy with the terms of the agreement, including the interest rate and repayment schedule, you can accept the quote. It’s important that you carefully read over the terms and conditions before accepting the quote to ensure you fully understand the associated costs with your used car loan.
Benefits of Used Car Loans
There are many benefits of a vehicle loan for used cars. This includes:
- Fast access to cash: you could be approved for a loan within a few minutes
- Online application: apply using our simple online form
- Flexibility: choose how much you want to borrow and for how long
What types of Used Car Loans are available?
There are different types of vehicle loans for used cars, including:
- Instalment loans – designed to be paid back in pre-arranged instalments
- Payday loans – these loans help cover your expenses until you are next paid
Why Choose Tendo for a Used Car Loan if you have a bad credit history?
We work with a panel of lenders who consider applicants of all credit types. You could be approved for loans for bad credit, even if you have been turned down for loans elsewhere. We operate a free, 24/7 service and you are under no obligation to accept any quotes that you are given.
From applying for a loan to receiving and accepting quotes from lenders, the Tendo team are on hand every step of the way to guide you through the process and answer any questions you may have.
What to do if you’re struggling with debt
While vehicle loan for used cars can be a fast way to access funds, it’s important you understand the implications. If you need financial advice or assistance, it’s a good idea to seek help from any of the following services:
If you feel you are struggling, or may struggle with your loan repayments, we recommend you always speak with your lender at the earliest opportunity
