Buying a pre-owned car is a money-saving alternative to purchasing a brand-new one. The vehicle might also offer good value for money as it may include all the features that a new one offers at a fraction of the original cost. That said, a used car can still be a huge expense, for which one may have to plan and make arrangements. Fortunately, one can easily find a few ways to finance a second-hand car.

1. Personal loans
One of the common ways to finance a pre-owned car is to get a personal loan.  This is a straightforward loan , which comes at a fixed interest rate and terms dictating the loan tenure, the repayment schedule, and the monthly installment amount.

2. Auto loans
One can find many lenders today that offer car loans between €3,000 and €75,000 to qualifying applicants who want to purchase a second-hand car.

3. Rentals
There are certain car rental companies and even financial institutions that allow one to rent and use cars for years. This eliminates the need for a down payment. The renter only has to make a monthly rental payment. This option is ideal for those who don’t want to worry about various responsibilities associated with car ownership. For example, the car rental company may cover fees associated with insurance, repairs, replacements, and taxes. The rental agreement would also cover travel assistance. 

4. Car lease
Another way to finance a second-hand vehicle is to lease or rent to own it. This allows one to buy the car over time. One has to make an initial deposit and pay a monthly fee for a specific period. At the end of the term, one can make a one-time payment and get ownership of the car. Alternatively, one can return the vehicle and pick a new one. Individuals can also continue to make monthly payments. Car dealerships usually benefit from finance, which means the initial price of a lease purchase is much lower than in comparison to buying with cash.

5. Trade-in
One could always trade in an existing vehicle to save money on a second-hand car. The value that one gets from the sale of the older automobile can be used to buy another pre-owned vehicle one wants . The option can even help cover the  down payment or other accessories one might want in their pre-owned vehicle.

6. Credit card
One can always finance their dream vehicle using a credit card, granted they have a good enough spending and credit limit. One could use the card to pay for a second-hand automobile and then pay the credit card bill later. Alternatively, one could get a credit card monthly payment option if the seller allows it. That said, a credit card purchase may come with added processing fees and other interest charges that one must consider.

Places to consider for financing options

• Banks typically have a few worthwhile options for financing a pre-owned vehicle purchase. They may offer pre-approved loans, which may also be open to those who are not on payroll. Alternatively, banks might even carry out credit checks to see if one qualifies for financing for the vehicle. That said, the decision to disburse any amount lies with the financial institution.
• Another place to consider for financing a second-hand vehicle is a dealership. A certified pre-owned dealership is likely to have attractive deals that will help one quickly finance a vehicle or make affordable monthly payments to get the vehicle later .
• Today, there are multiple nonbank financial companies (NBFCs) in the country that may offer instant loans to people to help them finance a car purchase. While such loans might come at higher interest rates, they may be open to borrowers who are not on payroll.