Second Hand Car on Finance Options for Your Purchase
Looking to finance a second hand car on finance? You’re in the right place. This guide breaks down everything from Hire Purchase to Personal Contract Purchase, so you can make an informed choice.
Car Finance for Second Hand Cars
Choosing the right finance plan is key when buying a second hand car. Many customers have bought second hand cars on finance and shared positive experiences, highlighting satisfaction with the process and their vehicles. Options like Hire Purchase, Personal Contract Purchase, or even a personal loan can make a big difference to your financial commitment and overall experience. Hire Purchase and PCP are each a form of car finance, offering different structures and contractual arrangements to suit your needs. Financing means you can negotiate like a cash buyer, often getting better deals and quicker transactions.
When buying from a dealer you also have consumer protection which isn’t guaranteed with private sellers. So if something goes wrong you have more recourse, added peace of mind to your purchase. Always make sure the Vehicle Registration Certificate is in order to confirm the car is legitimate. It's also important to check the quality of the second hand car before purchase to ensure it meets your standards for reliability and value.
Also make sure to ask about any existing finance on the second hand car as this can affect the transfer of ownership. Knowing these questions helps you navigate the car finance landscape more easily and make a decision on a car that fits your information needs.
Personal Contract Plan (PCP) for Used Cars
A Personal Contract Plan (PCP) is a popular car finance option that offers flexibility and lower monthly payments. Key features include:
PCPs usually last 3 years, so lower monthly payments than other finance options. But at the end of the term you have a balloon payment which is much higher than the earlier instalments. The final balloon payment is based on the car's value at the end of the agreement. At this point you can either pay the final payment, return the car or enter into a new PCP. You can also choose to re finance the remaining balance if you want to keep the car.
Be mindful of mileage limits in PCPs as exceeding the agreed limit will incur penalties. PCPs are ideal for those who can accurately predict their annual mileage and like to upgrade to a new car every few years.
Hire Purchase Agreement Explained
A Hire Purchase (HP) agreement is another common car finance option that leads to ownership. In this arrangement:
Hire Purchase agreements are available for a wide range of car models, allowing you to choose the specific model and trim level that suits your needs.
The contract must include specific details such as the total hire purchase price, any fees and the names of the parties involved. Lenders are capped at 23% APR as of May 2022 so the terms are fair. You can end a hire purchase agreement early by paying the balance or returning the car after paying half the total cost. Approval for a Hire Purchase agreement depends on meeting the lender's lending criteria, such as your creditworthiness and financial standing.
Consumers have the right to cancel an HP agreement within 10 days of signing the contract. Also if you fall into arrears finance companies must issue a default notice and give you at least 21 days to rectify before repossessing the vehicle. Knowing these terms helps you decide if HP is right for your financial situation and goals.
HPs usually last 2 to 5 years, 3 years being the most common.
Ownership transfers to you after the final payment.
You pay instalments to buy the use of the vehicle.
You can drive away in a new-to-you car. Plus pcp finance can give you a structured way to manage your payments.
For those who don’t have a large sum upfront.
Setting an initial deposit, usually 10% to 30% of the car’s value, and setting your monthly payments to suit your budget.
Flexible Finance Options
Flexibility is key in car finance and some options allow you to defer payments to the future. This means you can secure the car now and start deferred payments later, easing the initial financial pressure. Some plans even allow you to delay your first payments for a few months. With flexible finance options, you do not need to worry about large upfront costs or depreciation.
Adjustable instalment plans are another flexible option, you can change your payment amounts over time to suit your changing financial situation and manage your money better. This can be especially useful if your income fluctuates or you expect changes in your budget.
Alternative financing options like credit union loans often have structuring that matches your financial capabilities. Car subscription services, which include maintenance and insurance in the monthly fee, can give you more flexibility for your business. These services can also cover a fleet of vehicles, not just individual cars. After learning about these options, we encourage you to provide your information so our team can tailor a finance solution to your needs.
Gerry Caffrey Motors have a range of finance options to suit individual customers, so you can find a solution that fits your budget and lifestyle. We are committed to providing tailored financial solutions and ongoing support throughout your car buying and financing journey.
Competitive Rates and Deals
Getting competitive rates is key in car finance. Variable interest rates on loans can change over time and may reduce your monthly payments if rates drop. Also many lenders allow extra repayments without penalties so you can pay off the loan faster and reduce overall interest costs.
Gerry Caffrey Motors work with multiple banks to offer a range of competitive finance options for cars. They focus on affordable finance so financing second hand cars is more accessible and better for the customer. Customers consistently mention the great service they receive during the finance process, with staff providing helpful and professional assistance. The dealership is committed to delivering excellent customer service at every stage, ensuring satisfaction and support throughout. Their tailored finance solutions take into account individual budgets so you get the best deal for your situation. Compare offers from different lenders to find the best deal. Take your time to review these offers to make sure you choose one that fits your financial goals and needs. With the right deal you’ll be driving away happy and confident in your purchase.
How to Apply for Finance
Applying for finance is a simple process if you follow these steps. Check your credit score as it affects your approval chances and interest rates. Gather necessary documents like proof of identity, address and income to speed up the application.
To apply for finance:
Follow these steps and the application process will be smooth and easy to get the car you need in the right way. The entire process is tailored for customers in Ireland, benefiting from local expertise and familiarity with Irish finance options. With the right preparation you’ll be behind the wheel of your next car in no time enjoying the simple freedom of the Irish roads.
Benefits of Financing Your Next Car with Gerry Caffrey Motors
Financing your next car with Gerry Caffrey Motors has many benefits. They focus on building long term relationships with customers, showing a commitment to customer satisfaction. No pressure sales approach makes the car buying experience enjoyable.
The dealership has been a Suzuki franchise dealer for over 30 years, that’s experience and reliability in the market. The long standing company brand reputation gives you peace of mind and support throughout your car ownership journey which is worth considering.
Before signing any contract read and understand all terms and conditions as they outline fees, terms and conditions. With Gerry Caffrey Motors you can drive away knowing you made a smart financial decision and partnered with a dealer that values your professionalism and satisfaction.
FAQs
What are the benefits of financing a second hand car?
Financing a second hand car allows you to negotiate like a cash buyer and have consumer protection and flexible payment options to fit your budget. This can mean big savings and financial security.
How does a Personal Contract Plan (PCP) work for used cars?
A Personal Contract Plan (PCP) for used cars is an initial deposit followed by lower monthly payments and a final balloon payment at the end of the term. You can pay the final amount, return the car or start a new PCP.
What is a Hire Purchase agreement?
A Hire Purchase agreement is instalment payments for temporary use of an asset like a car with ownership transferring to you after the final payment. This is usually 2 to 5 years.
What flexible finance options are available for second hand cars?
Flexible finance options for second hand cars are deferred payments, adjustable instalment plans, credit union loans and subscription services that may also include maintenance and insurance. These options will allow you to tailor your payment plan to your budget and needs.
Why should I finance my next car with Gerry Caffrey Motors?
Financing your next car with Gerry Caffrey Motors is beneficial because of their competitive finance options and no pressure sales approach, backed by over 30 years as a Suzuki franchise dealer. That gives you peace of mind in your purchase.
Some lenders allow you to adjust the loan term length to fit your budget.
Once submitted lenders will review your credit history and application details for approval.
Fill out the finance application with accurate personal and financial details to avoid delays or rejections.