The Ultimate Guide To Used Car Finance

How does used car finance work? We tell you the best ways to finance your next used car

Our customers often ask us for advice on the best way to finance a used car and we get a lot of questions around how does used car finance work - so we’re going to explain used car finance in detail for you here. What's more, we’ve made it easy to find your used car with our used car locator. All you'll need to do after that is pop along to your local Brayleys dealership for a test drive!

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The best used cars at Brayleys

As a multi-franchise dealership, we have a vast range of outstanding used cars to choose from, all carefully checked over by our team of manufacturer-trained technicians. All our used car stock is now easily accessible via our used car locator. Just put in a few details about what you’re looking for and our used car locator will bring up a range of cars for you to choose from. We always have in stock a choice of used Honda, used Kia, used Mazda, used Mitsubishi, used Renault and used Dacia. We often have some excellent deals to offer you too.

What is PCP?

PCP means Personal Contract Purchase or Personal Contract Plan. Choosing to buy your used car on finance through PCP at Brayleys means you’ll have to make only low monthly repayments with a low rate of interest. Monthly costs are low because, after paying your initial deposit and you’ve made all your monthly payments and the contract period ends, there’s still usually some 33% of the cost of the car outstanding.

In essence, every month you’re only paying the amount the car is depreciating. If you’ve kept the car in good condition and had it regularly serviced according to the vehicle manufacturer’s recommended servicing schedule, you can simply return it to us and owe nothing, with the option of entering into a new PCP deal with us for another used car. That makes PCP a lot like entering into a long-term rental agreement with us for a car, where every, say, three years if that’s the contract period, you get to take out a new PCP agreement and drive a newer model.

If you prefer, of course, you can also pay the outstanding amount on your car and own it outright – this outstanding amount is often referred to as the balloon payment. What’s more, when we set up your PCP deal with you, we’ll work out a Guaranteed Minimum Future Value (GMFV) for you that protects you in the event that the value of your car goes down, but also means that if the value goes up and you enter into a new PCP arrangement with us, you can benefit from that additional value in your car to cover all or part of your deposit for a PCP on another car.

When you sign up for PCP, we’ll also agree with you a maximum mileage per year that you expect to do. If you exceed this agreed mileage, there will be a small per-mile charge to pay as well. Give our used car PCP calculator a try to find out your monthly payments and help you work out the car you can afford.

Good old HP

HP or Hire Purchase has been around for donkey’s years. A modern HP agreement for a used car purchase at Brayleys can be a good way to finance your used car if you want to end up owning the vehicle. Using HP to finance your new car means you’ll put down an initial deposit, which is usually quite low, and then you’ll make monthly payments to pay off the outstanding balance over the term of the HP agreement.

HP is essentially a loan which is secured against the car you’re buying, and you won’t actually own the car until you’ve paid off all the outstanding amount. There are no excess mileage charges with an HP agreement, as it is expected that you will own the car by the end of the agreement. Just remember, you can’t sell your car until all the finance on it has been settled.

Brayleys Used Cars


Finding your next used car and used car finance, both made simple at Brayleys

For more information on our used car stock and your used car finance options, please call us or send us a used car enquiry

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Terms and Conditions: A minimum 18 month finance term and minimum £2,500 balance to finance apply. Finance applicable at participating Brayleys dealers and are at the promoter's absolute discretion. Finance is only available to persons aged 18 or over, subject to status. Subject to availability. Terms and conditions apply. All figures are correct at time of publication but may be subject to change. Credit provided by Honda Finance Europe, Mazda Financial Services, RCI Financial Services, Kia Motors Finance.

Brayleys is authorised and regulated by the Financial Conduct Authority, Financial Services Register number 0000277531. Brayleys Cars Limited may introduce you to a number of finance providers where a commission may be received. This introduction is not independent financial advice. Brayleys Cars Limited Lyon Way, St Albans, Hertfordshire AL4 0LQ is authorised and regulated by the Financial Conduct Authority.