Used Car Loan

Secured and unsecured used car loans are on offer from a variety of lenders. These used care loans are specifically offered by lenders to provide car buyers with a competitive finance arrangement through which to purchase a used car.

If you take a secured used car loan you will be required to pledge your car to the lender - so if repayments are not met it can take the car. As these are less risky to the lender the interest rates are usually lower than with an unsecured used care loan.

A used car loan can be taken over a period you specify - for example five years - at usually up to £20000 on an unsecured basis with higher amounts available if security is supplied.

To apply for a used car loan you will be asked to supply personal information such as age and salary and your credit rating will be checked. Depending on the result you will be offered an APR by the lender.

Comparing lenders quoted typical APRs will give you an idea what to expect. But before taking a used care loan make sure you can meet the cost of repayments.

Moneyextra.com recommends you take independent financial advice before acting on any article

2009-02-17 00:00:00 © Moneyextra.com