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Used Cars On Finance For £50 per month - Cheap Cars on Finance

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.

How to get the cheapest finance deal possible

We'll be honest getting a car on finance for £50 per month isn't going to be easy and it probably isn't going to be a fancy car. However, it's essential to find a finance deal that suits your budget and doesn't leave you paying more than you need to in the long run. We'll explore five tips that can help you secure the cheapest used car finance deals in the UK.

Check Your Credit Score
Your credit score plays a crucial role in determining the interest rates you're offered. Before you start shopping for car finance, check your credit report for any errors or inaccuracies that could be affecting your score. If your credit score isn't as high as you'd like, consider taking steps to improve it, such as paying down existing debt, making timely bill payments, or avoiding taking out new credit.

Shop Around for the Best Deal
Don't limit yourself to the finance offers available at the dealership. Shop around and compare rates from multiple lenders, including banks, credit unions, and online finance providers. You can use online comparison tools to get an overview of the best deals on offer. This will give you a better chance of finding the lowest interest rates and most favourable terms.

Choose a Shorter Loan Term
While longer loan terms may result in lower monthly payments, they usually come with higher interest rates, which means you'll end up paying more over the life of the loan. Opt for a shorter loan term if you can afford the higher monthly payments. You'll pay off the loan faster and save money on interest.

Save for a Larger Deposit
A larger deposit reduces the amount you need to borrow and can help you secure a lower interest rate. This means you'll pay less in interest over the term of the loan. Additionally, having a significant deposit demonstrates to lenders that you're financially responsible, making them more likely to offer you a better deal.

Consider a Hire Purchase Agreement
A Hire Purchase (HP) agreement may be a more affordable finance option for used cars. With HP, you pay a deposit upfront, followed by fixed monthly payments for the duration of the agreement. Once the final payment is made, you own the car outright. HP agreements often come with lower interest rates compared to other finance options and can be an excellent way to get a cheaper deal on a used car.

Securing the cheapest used car finance deal in the UK requires a bit of research, planning, and smart decision-making. By following these tips, you can increase your chances of finding a finance deal that suits your budget and allows you to drive away with the used car you want. Take the time to compare offers, consider your finance options, and ensure that you're making a decision that works for your financial situation.

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