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Can I Buy A Used Car on Hire Purchase?

If you want to save money on your car purchase, you might want to consider getting a second-hand car. You can make it even more affordable by financing the car with Hire Purchase. Read on to learn the steps on how to get used car l

Can You Hire Purchase a Used Car?

Hire Purchase is available for brand new cars and second-hand vehicles alike. It’s a great way to finance a car because Hire Purchase allows you to spread the cost of the vehicle across the initial deposit and a set of monthly instalments. Most Hire Purchase car finance agreements last between three to four years. If you want more affordable monthly instalments, you can choose a longer repayment term. 

In most cases, you have to pay a deposit at the start of your car finance agreement. However, there are car finance companies that offer zero-deposit deals for borrowers with excellent credit scores. You can drive the car you want without having to put down cash at all. Do note, however, that your monthly repayment amount will be higher and you’ll pay more interest overall because you’re borrowing more money for the car. 

A tip to save money when financing a car is to pay a substantial deposit and choose a shorter repayment term. Yes, your monthly instalments will be higher but you’ll pay less interest in the long run. Also, you’ll be done with your car finance agreement faster and the car will be yours once you’re finished making all the payments. After that, you’re free to sell it, modify it, keep it or do basically anything you want since you’re now the legal owner.  And if you are getting hire purchase from Carmoola, you might like to know that we only charge £1 to transfer the car to you - however this is not the case for many other lenders who may charge considerably more, so do check that out. 

Advantages of Buying a Second-hand Car

Some buyers might not be too keen on getting a used car, thinking that it isn’t as good as a brand new model. However, a second-hand vehicle can actually be a good purchase if you take the time to shop around and find a trustworthy car dealer. To add to that, if you go for an HP, you can finance the car so that the cost of buying it will be divided into a series of monthly instalments. If you opt for a Personal Contract Purchase, or PCP,  however, the monthly payments do not entirely pay for the car and you still have to make a balloon payment at the end. Check out more about PCPs here. Let’s take a look at some of the other reasons why getting a second-hand car is a great idea. 

More Affordable Prices

One of the main benefits of buying a used car is that it’s much cheaper than its brand new counterpart. Vehicles quickly start to lose their value once they leave the dealership so even if you get a one-year-old car, you can expect it to have a significantly lower price. Of course, some used cars will already have a bit of wear and tear, depending on how old they are, and their mileage. But if you choose a popular model, you’ll have plenty of choices in the used car market. You can even look for ex-demonstrator cars that are basically good as new. 

You Can Get a Better Car

If you have a budget for a brand new car that is just a basic model, you can actually buy a fancier car for the same price in the second-hand car market. Other than that, you might even find a better car that already has upgraded features and specs that would normally cost you a whole lot if you were to add those to a brand new vehicle. With a used car, you can really stretch your budget and get better deals

No Need to Wait

When you buy a brand new car, it’s possible that you might have to wait before you can drive it home, especially if it's a popular model. This could take a few months to even years, depending on the demand for that particular car and whether you’ve requested a specific colour, features, and equipment. But if you choose a nearly-new car, you simply have to choose from what’s available in the dealership or online, and you can drive it immediately. You never have to be put on a waiting list. 

Longer Manufacturer Warranties

Most car manufacturers offer only up to three years of warranty. However, if you choose a Hyundai, then you can enjoy up to five years of cover. Kia beats this though because their warranties last up to seven years. And just when you think that’s it, Toyota is the best when it comes to manufacturer warranties because theirs last for 10 years! So, it doesn’t matter if you get a used car that’s two or three years old because the manufacturer warranty will still cover it even if the car is with a different owner already. Even with other brands or older cars, you will still sometimes be offered a 12 warranty from the dealer.

Cheaper Car Tax

The first-year tax rate of brand new cars is based on their CO2 emissions so it’s going to be a significant cost that you have to be prepared for. Taxes for the first year can be as high as a few thousand pounds and then after that, the standard rate would be around £150. You can avoid spending this much by getting a fuel-efficient car that has been registered prior to April 2017. If you really want to get rid of taxes altogether, consider getting a full-electric car to enjoy the tax benefits. There are also many used electric cars available on the market already so it’s worth exploring that as well. 


Hire Purchase car finance is available for used cars, be it petrol or diesel-fueled, hybrid or full-electric vehicles. Choosing a second-hand car is a great way to stretch your budget, allowing you to get a fancier car with better specs, features, and equipment. 

If you’re curious to know how much it will cost to finance a car, try out our car finance calculator! And when you’re ready to apply for car finance, simply download Carmoola on your smartphone, fill out the required details, and know the result instantly! Once approved, you’ll know your budget and you can buy the car you want. Car finance with Carmoola is fast, easy, and straightforward. 😀🚗

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