Used car loans are very useful if you can't quite afford a brand new car, and are seeking finance for something more within your budget. Many used cars are excellent buys, particularly those less than a year old where depreciation on the new price has occurred, and you can secure yourself a next to new car for significantly less than the new price.

The age can effect you used car loan rates. Normally the older the motor vehicle the higher the interest rates. Lenders normally package pricing into age groups. For example New -2 years, 3-5years and 5 years and older. Simply the older the car is could have a large impact on what your finance rates will be and does effect how the lender approves the loan.

Some discount the interest rate to a new car loan rate if your loan amount is above a certain amount. Levels around £25,000 - £30,000 can mean your interest rate could drop considerably to even a similar rate to new cars.