Buying a car in 2022 presents a new challenge.
Indeed, sudden and unexpected fuel production and consumption have been reduced due to the Kovid-19 epidemic. Hesitation and slow response in the aftermath of the epidemic have created an imbalance in the supply-demand market. As a result, people in the UK have experienced a disparity between their fuel demand and available fuel, which has led to panic about buying fuel for petrol and diesel. As a result, UK drivers have inadvertently obstructed the journey to recover road fuel supplies.
The current conflict in Ukraine has pushed up oil prices around the world. By the end of 2022, sanctions, such as the phasing out of Russia’s oil imports, will inevitably lead to higher oil prices. Thus, it is understandable for British drivers to consider fuel-saving alternatives for their daily commute, from fuel-efficient cars to electric vehicles. Not surprisingly, the used EVR market in the UK is growing rapidly in 2022, setting a new record for all-electric vehicles used in the first quarter of the year with over 14,500 transactions. So, if you are looking for the best solution to reduce your dependence on Russian oil and fuel and avoid the impending energy crisis, you may be interested to know more about UK based car finance. Below we consider how you can get a used car for money to save on fuel costs.
What are the options available for car finance car?
As a general rule, the money options available in the used car market are pretty much the same as what you get when you buy a new car, without a lease – which is less common for used cars.
Buyers are more likely to discuss prices with a private seller. However, if you decide to buy from a private seller, you need to find a financing solution yourself.
Some lenders provide car financing services for the sale of a private car. However, in order to be able to apply for financing, you need to provide additional seller information, which not all private sellers are willing to do. In addition, buyers receive less protection in a personal sale than in a dealership, which can make it difficult for buyers to find financing.
Alternatively, you can apply for a personal loan, which can be used to finance your car. However, it can be difficult to get bank loans depending on your current credit score and credit history.
On the other hand, most car dealers can offer a variety of financing options. If you purchase from a reputable dealership, you will still be able to access used car credit finance even if your credit score is poor.
How does the used car financing process work?
Unlike a bank, car dealerships have a keen interest in finding the best financing solution for their customers. As a result, eligibility criteria for financing options for a used car are less stringent than for a banking institution, as dealerships can work with a variety of lenders. In addition, the decision-making process is already fast enough.
Among the main points of difference between a car loan and car financing through a dealership are:
- Eligibility for credit
- Budget-appropriate payments
- Quick decision
- A contact point for financing and purchasing used cars
For buyers who want to upgrade their vehicle for a fuel-efficient alternative but are concerned about financing, buying a financed car through a licensed dealership can give them peace of mind.
Do electric cars have different financing options?
Buyers are likely to call everyone who looks appropriate, if there are only a few. Dealerships specializing in electric vehicles can provide a range of credit and financial agreements for their customers. We strongly recommend against personal sale, because you want to make sure that the car has received the necessary care and maintenance to keep its value.
The UK Plug-in Car subsidy provided by the government for the purchase of electric cars only applies to new zero-emission vehicles. Used vehicles are not eligible for PiCG. Although the grant has helped finance more than 285,000 new electric vehicles by 2021, it does not cover more than 35% of car prices. If you are considering a used car for cost savings, then a plug-in car grant is not a reasonable solution.
Is leasing a used car financing option?
Leasing is less common for used vehicles. Nevertheless, the dealership may offer the option of purchasing a personal contract. The PCP Finance Agreement agrees to a monthly payment for the car, at the end of which you must return the car. If you want to buy the car, you have to pay for an extra balloon.
In conclusion, if you are considering upgrading your car before the energy crisis, there are various financing options for buying a used car for your needs and budget.