If you're now looking for guaranteed car finance, you've come to the right place to get it. On this website, there are financing options from some of the largest car finance companies in the UK. Having all of the finance options displayed in one place saves a significant amount of time. This is especially important if you have a less-than-perfect credit score. Allowing you to compare motor finance offers is part of our service and this comparison can lead you to some of the most juicy deals.
If your credit score isn't currently impeccable, you may find trouble buying a new or second hand car. Even if your money woes occurred a long time ago, they can still show up in your credit history and they could prevent you from getting the financing you need. However, buying a car with bad credit is easier when you are aware of all the options.
Before applying for car finance, you should determine whether you will qualify or not. To find the right guaranteed car finance, you will need to show lenders that you are be able to repay the loan without too much financial strain. You may well be asked to present the following items:
Employment History - You'll have an easier time getting guaranteed car finance when you are fully employed. Lenders generally want to see that you have held down a job for at least six months. They will also examine your employment history to see how long you have remained at various jobs. This will give them a better idea of whether you will continue to be employed in the future or not.
Bank Statements - A quick and easy way for a lending company to determine how careful you are with your money, is by looking through your bank statements. You will most likely be asked to provide at least six months of bank statements. If your statements show that you go overdrawn regularly or that you pay a significant amount of fees, the lender may then decide that you aren't financially stable enough for a loan. The lender will also check to see how long funds stay in your bank account after you are paid.
Deposits - One way to increase your odds of getting a car loan is by providing a sizable initial deposit. This is especially wise if you have a bad credit rating. If you're going to do this, try to provide a deposit that's equal to at least 15 percent of the price of the vehicle.
There are a number of options for buying a car on finance in the UK. You can always pay for the car with cash, but that means that you have to save up for it before buying it. A more flexible idea is to finance your new vehicle. Some of the most popular car finance options in the UK are highlighted for you below.
Personal Loan - If your credit is good, this is probably the best option. Personal loans offer the most flexible terms, and people who have good credit can often take advantage of low interest rates. It can also be easy to get a low monthly payment too, which makes it simpler to manage your personal finances. As a rule its always better to shop around for a personal loan when buying a car. There are many options available. With a personal loan, you can sell your car at any time and use the money to pay off the rest of the loan to settle it.
Hire Purchase Agreement - Like many in the UK, you may decide to use a hire purchase agreement or HP agreement, to buy a car. In this case, you won't actually own the car until you make your last payment, so you can't sell it until it's been fully paid for. You're basically hiring the car until the loan is paid off in full. You have to pay an initial deposit in the beginning. Once you've paid it, you can then choose to buy the car outright. If you agree to pay a lump sum at the end of the term, you may be eligible for lower monthly payments. It's very important to understand your rights when entering into this type of agreement to purchase a car.
Personal Contract Plan - The primary difference between a personal contract plan, or PCP, and an HP agreement is that the dealer lets you know how much you will have to pay to fully buy the car when the finance term expires. When the time arrives, you can sell the car privately or via car dealers to pay off the remaining balance, keep it by paying the difference between what it's worth and how much you've paid or return it to the dealer. To have all of these options, you must keep any mileage restrictions in mind.
Lease Agreement - With low monthly payments and no initial deposit, a car lease agreement is a flexible option for people who don't actually want to buy a car outright. You may even be able to get a lease agreement that includes car servicing. As with PCPs, mileage restrictions usually apply. You can trade the car in for a new lease at the end of the term.
Zero-Percent Financing - With a large deposit of approximately 40 percent or more and a shorter term, you may qualify for zero-percent financing in some instances.Recent Customer Questions for September 2016:
Question: Is it possible to buy a car with finance and no deposit even if I have a bad credit rating?.
Answer: Yes it's definitely possible to use car finance to buy a car and not have to place a deposit down, even if you have a poor credit rating. Just make sure that you tell the car finance advisor, that you speak to, about your credit status so they can help you and find the best car and finance deal. There are so many deals currently available that you will have a large choice of options to choose from. No credit check is usually used at this stage.
Question: How much interest will I have to pay with car finance?.
Answer: The amount of interest that you pay with a car finance deal can vary depending on a number of factors, such as your credit rating and the amount of deposit that you putting down. With interest rates in the UK being at a very low level there are some great deals out there, examples include offers even with rates as low as 5.6% per year. Fill out the form above and we'll give you an accurate idea of what you will pay and which packages are available.
Question: How long does it take to get approved for car finance?.
Answer: It's a very quick process, once you have filled out your details an intial decision can be given in minutes. Then you can decide which make and model of car you are interested in, locate a garage that has the stock and move on from there. These days getting a car on finance is a simple and stess free experience.
Question: I have a really bad credit rating, will I still be able to get car finance?.
Answer: The answer to this question is almost always yes although you'll probably pay a higher rate of interest on the finance for your car. To try and help with this, obtain your credit file and see if you can speak to the lenders that you have had problems with. Sometimes you can get the bad credit score removed which will both help you when applying for car finace and also other financial products. A very bad credit rating is not always detrimental when finding car finance.
Question: How much can you finance a car for?.
Answer: This depends on the amount of deposit that you have, the amount you earn and your credit history. It's possible to finance a car of £20000 or more if your situation allows it.
To review, now that you're aware of the main options for buying a car in the UK, you should have an easier time finding the best car finance. Just take your time to ensure that you get financing that's right for you.
Thanks to the people over at www.advanceloan.net for their help setting up this site and assisting with the online form integrations.For further information about car finance please also see these pages: