The majority of motorists will look to buy in the used car market when the time comes to buy an automobile, and this is a smart move as this can be much more affordable than buying new. Despite this, it is still a large sum of money involved and many struggle to finance the vehicle and then afford the running costs.

With this in mind, here is some advice on the best way to finance and insure a used car.


The most affordable way to purchase a used car will be cash as you will have to pay interest on any loan or finance agreement. However, this can be a challenge for many and if it will leave you in a difficult financial position then it is best to consider a loan or finance agreement and put down a large deposit.

Dealer Finance

When you shop at established used car dealerships like Shelbourne Motors you can benefit from a range of flexible finance options. These include Hire Purchase (HP) where you pay a deposit of around 10% and then subsequent monthly payments over an agreed period – you own the car once the final payment is made. Personal Contract Purchase (PCP) is another option which is similar to HP but usually involves lower monthly payments but a higher total sum and there is a range of options at the end of the agreement. With PCP, you can trade the car in at the end of the agreement and take out a deal on a new vehicle if you wish or make a balloon payment where you will then own the car.

Financing through a dealership can be quick, flexible and convenient and is a good option if you cannot buy outright, but always make sure that you can afford the monthly repayments.

Credit Card

You can also opt to pay all, or part, of the figure by credit card provided that you pay at least £100 by card and can afford the monthly payments. Although a good option as it provides extra protection, many dealers do not accept a card or will impose a charge handling fee which can be as much as 3%.


When it comes to insuring the vehicle, it is important to research and compare quotes online to find the best deal. Often you will find that fully comprehensive cover can be found for affordable prices and is cheaper than an inferior level of cover from a different provider. There are also plenty of quick and easy ways to reduce your premium and these are highly worth doing if you are working on a tight budget.

A used car is a huge purchase, but the above finance options and advice on obtaining insurance can make it much easier for a motorist to afford to buy a high-quality used car.

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