If you’ve been refused a car finance deal or you’re searching for finance for the first time, our expert guide below has been created for you! The world of car finance can seem confusing, but it doesn’t have to be. It’s true not everyone who applies for finance will be approved. Car finance lenders need to assess the risk of getting their money back when they loan you for a car. So, to do this, they need to check key factors about you, such as affordability, employment, credit score and living situation. Get prepared with our top tips for securing car finance and you could be on the road in no time!
1.Have an open mind.
Like we’ve mentioned above, car finance can’t be guaranteed to everyone who applies. Getting a car finance deal which isn’t suitable or unaffordable can lead to financial implications in the future and from the lenders point of view, they want their money back as soon as possible. So, make car buying stress free and don’t get too focused on a certain make or model, type of agreement or budget, having an open mind can mean you won’t get disappointed and you may even get a better deal than you first thought. The main focus point should be an affordable and realistic budget you are able to pay back until the end of the term.
2. Check your credit.
Your credit score is a key factor in your car finance journey. A credit check is performed by lenders to see how likely you are to pay their finance back on time, based on your previous history of borrowing. A poor credit score can put lenders off and if you’re in this situation, you should consider improving your credit score before applying for finance. A joint car finance application can help bad credit drivers because you apply with a partner or family member to get a car together. People with better credit scores usually get access to the best car finance deals and lowest interest rates.
3. Do your research.
Car finance is really beneficial and can unlock many opportunities. However, many drivers overlook the benefit of researching car finance first. If you’re new to finance, you’ll find there’s a number of agreements to choose from and you may only be suitable for some or all of these agreements. It’s not just about eligibility either, car finance agreements have different structures and you may favour an agreement, depending on what you want from your deal. For example, if you want to own the car outright, a personal loan would be your best choice. If changing your car more regularly is important to you, both HP and PCP have option to purchase fees at the end of the deal. Take some time to research all the finance agreements on offer before heading to the dealership.
4. Finance first, car second.
Many drivers make the mistake of applying for car finance at the dealership where they’ve seen a car they like. However, the finance first approach can save you time and money. By this we mean sorting your car finance first through an online lender or broker and then finding the car you want in your budget. Car finance brokers work on your behalf to find the best deal from a wide panel of lenders, so you don’t have to go hunting around for deals. The broker does the leg work for you and it can all be done online! Once you’ve found the best car finance deal for your situation, use it at any participating car dealer and get a car within your budget.
5. Save for a deposit.
There will be lots of £0 deposit deals being advertised but if you can, you should try to put down a deposit contribution for car finance. Lenders may even favour applicants who have a deposit because it means they don’t have to lend you as much. The deposit comes off the total loan amount, making your loan smaller and more affordable. A smaller loan may even make your monthly payments smaller or mean you can shorten the loan term.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
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