Things to consider when buying a used car
How to work out your budget
Before buying a used car, it’s essential to calculate what you can afford. Consider not just the cost of the car but also additional expenses like:
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Tax
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Insurance
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Fuel
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Repairs and maintenance
Explore: How to create a budget
Different ways to buy a used car
If you need help financing a car, here are some common options:
Using your savings
If you don’t need your car straight away, saving up can reduce how much you need to borrow.
Used car financing options
If you need help financing your car purchase, here are some common options:
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Hire purchase (HP)
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Personal contract purchase (PCP)
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Leasing
Please note – HSBC doesn’t offer HP, PCP, or leasing agreements.
When considering financing, make sure you understand the costs involved and can afford the repayments.
Should you finance a used car?
Financing a used car allows you to spread the cost over time. Many used cars are in excellent condition, as owners often upgrade their vehicles every 2 to 3 years.
Advantages of financing a used car
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Lower monthly payments compared to new cars
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Used cars depreciate slower than new ones, making them a cost-effective choice
Things to consider before financing a used car
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Your financial situation and existing debts
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Your ability to afford the repayments alongside other car ownership costs
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How essential the car is to your daily life
Car loan calculator
Calculate your monthly loan repayments (based on the amount you want to borrow and how long you’d like to borrow for). Loans are subject to status and eligibility criteria apply.
Are used cars cheaper to insure?
Used cars are often cheaper to insure because they tend to have a lower market value. However, insurance costs depend on several factors, including:
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Your driving history
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Where you live
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The level of coverage you choose
Tip: Compare quotes from different providers to find the best deal.
Please note – HSBC doesn’t offer car insurance.
Where to buy a used car?
You can buy a used car from:
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A manufacturer's dealer, independent garage, or trader
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A private seller
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An auction
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Online
If buying from a dealership, check if the car comes with a warranty and read the fine print to understand what’s covered.
Consider using car check services to verify:
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The vehicle’s condition (engine, bodywork, tyres, etc.)
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Outstanding finance or write-off status
What to check before paying for a used car
Before you hand over any money, make sure you:
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Confirm what's included in the price
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Perform any necessary checks to make sure you’re happy with the vehicle
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Check that you have the correct documents
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Avoid paying cash for a vehicle – always use a traceable method, such as a bank transfer, and ask the seller to sign a receipt
The GOV.UK website explains everything you need to do when buying a used car, including checks to make sure the vehicle isn’t stolen or unsafe and what documents are required.
For more information, visit: .
