How Nearly New Car Finance could save you money

When it comes to car finance, most customers would like to finance a new car. But did you know you could get a better finance deal by choosing nearly new car finance? Not only can you save money on your finance package, but you'll also keep the value of the car by avoiding the high risk of depreciation that comes with buying a brand new car. You'll also get a car with less mileage and wear and tear than a used vehicle. The best of both worlds in one handy package; what’s not to like?

How depreciation affects new cars

Depreciation is the difference in value between the purchase price and the sale or trade-in price. Although sometimes appreciation can occur over time (when something gains value such as a house), in the vast majority of cases value is lost as time progresses.

This is relevant when it comes to cars, especially new cars. Industry experts have estimated that as soon as a new car is driven off the forecourt, it can lose up to 11% of its value. In the first year, a car can lose 40% of its value, and if you average over 10,000 miles per year, this can rise to a staggering 60% by the time it turns three years old.
We provide a more detailed definition on our car finance glossary page on depreciation here. 

How choosing nearly new car finance can beat depreciation

There are two big advantages of choosing to finance a nearly new car.

As mentioned before, new cars lose a lot of value as soon as they are driven off the dealer forecourt. This can be a big disadvantage when you finance a new car, especially when you choose a Personal Contract Purchase (PCP) or Lease Purchase (LP) package. In these types of car finance project, you are effectively paying for the depreciation in value of the car from the start to the end of the agreement.

When you finance a nearly new car using these products, the depreciation is much lower. This means your monthly car finance payments will also be much lower.

Buying a nearly new car (up to two years old) will mean you can take advantage of a cars' depreciated value, without losing too much value from the car you buy. As well as the better value, the car will have the benefits of a newer car, such as less wear and tear to the interior and fewer mechanical defaults. Nearly new cars often have much less mileage and some still even come under the manufacturer’s warranty. This means you get the benefit of a new car without the drastic loss of value.

A car is an expensive item to buy. Unless you're planning to keep the car until it completely wears out, you'll want to retain some value in the car for when you sell it on. This is where choosing nearly new car finance can be the best option.

Why finance a nearly new car with Creditplus?

Creditplus is one of the UK’s leading car finance providers. We compare over 90 lending options to find our customers the best deal. No matter what your credit rating or financial circumstances may be, Creditplus can find the nearly new car finance package that’s right for you at an affordable price. As an ethical lender, we’re committed to finding our customers the best deal that's right for them. Our soft credit search means that applying won’t affect your credit file, so you can be sure that you are being treated fairly from the start to the end of your car finance application. To work out how you can afford your nearly new car, use our Car Finance Calculator.

The Creditplus car finance process just takes three easy steps.

  • Complete our 2 minute online car finance application and you’ll be given an instant decision* on the lending options available to you
  • Search our UK database of nearly new cars from trusted dealers nationwide to find the right car for you and we’ll be able to provide the nearly new car finance you need to buy the car
  • We’ll work with the lender and the car dealer to get you the best car finance package for the car you’ve chosen

Then it’s simply a matter of you agreeing the deal, so you can soon be on the road to your new car.

*Note: An instant online decision is based on a representative APR of 9.9%.

Apply for nearly new car finance today

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