Car Finance Eligibility

Rates from 10.9% APR. Representative APR 19.9%

Audi A1
CAR FINANCE SOLUTIONS

What Is Car Finance Eligibility.

When you’re looking to take out motor finance, the products for which you are eligible will depend on your unique circumstances. In this article, we’ll take a closer look at the factors that affect motor finance eligibility.

Finance lenders base their decisions on whether or not to make a loan offer depending on the applicant’s status. Every lender will have its own eligibility criteria which can vary considerably. Applicants with a great credit history will tend to receive the most competitive finance deals. Applicants with poor credit histories may find it harder to get finance, and are likely to pay more for it. The variation in finance costs and charges is just one reason to compare the market carefully. You can compare motor finance eligibility in just a few clicks online with Bright Motor Finance.

Compare Motor Finance Eligibility Online.

Finance deals are available from a huge range of lenders in the market and it just isn’t possible to review them all one by one. By using a finance comparison site, you can rapidly gain access to hundreds of quotes, simply by providing your information once. The comparison website does the hard work for you, by taking your information in a single form and then using powerful software to review hundreds of different provider offers to see which insurance product is suitable for your needs – and which is the most affordable. When the results come through on your search results page, you can order them by the cheapest policy price or another factor of interest.

The site only provides up to date results as well. This is important as providers can change their products over time. When you see a finance offer that appeals to you, you can lock it in by applying immediately online. The entire process is quick and easy and allows you to make your application in a seamless process. If, for any reason, an insurer can’t complete your application online, perhaps if you have poor credit, for example, you will simply be provided with further contact details, or the insurer will get in touch with you directly on the information that you provide.

Can I Get Car Finance If I Have Bad Credit.

Yes, there are providers that offer specific bad credit motor finance deals to people who need to build up their credit rating in order to access more competitive finance deals. Bad credit motor finance tends to be more expensive because it offers a greater degree of risk to the lender, however it does allow applicants to obtain the finance that they need to purchase a car.

A car is an essential item for most of us because we use it for everything from grocery shopping through to work. Again, by choosing to use our website to compare motor finance eligibility and to see the best offers for your situation, you will know that you have secured the best possible deal on the market from a trusted and known lender.

 

Car Finance Eligibility

In Summary - Why Compare Car Finance Eligibility?

Here are just three reasons to use our loans comparison site to save you time, money, and stress when you need access to car finance.

1. You will save money by seeing a wide range of finance offers on a single page, returned in an instant. Many of these finance deals are hard to find directly and some will only be offered via specialist brokers and comparison sites.
2. You will save time because with our loans comparison site, you only need to enter your information once to see a full list of finance dealers who are willing to offer you a finance deal – and the terms under which they are prepared to offer them. This allows you to carry out an instant comparison.
3. Apply online in minutes – rather than re-entering your information all over again, you can simply apply via our comparison loans website for your loan in just a few minutes.

How To Improve Your Car Loan Eligibility.

If you aren’t being offered competitive finance for car purchases or other types of credit, there are ways to improve your credit rating. Try these tips:

  1. Get on the electoral roll to demonstrate stability (and ideally, remain at your address for at least 3 months.)
  2. Repay all of your credit arrangements in full and on time.
  3. Use every credit deal as a way to demonstrate that you are able to meet your finance obligations – so that you can save money in the future.

Use our loan comparison site whenever you need finance, to make sure you are accessing the best deals. (The comparison process only uses a soft credit check to allow lenders to assess your application in order to make offers – but this will not affect your credit rating.)

Car Finance Eligibility
Payment History
35%
Amount You Owe
30%
Length of Credit History
15%
New Credit Opened
10%
Type of Credit
10%

Credit Score Breakdown.

What Factors Affect Your Credit Score?

Financial well-being is strongly influenced by people’s credit scores. Your credit score is a measure of your financial responsibility. The higher your credit score, the better your chances of getting car finance with lower interest rates, and other benefits. Having a low credit score may prevent you from qualifying for a car loan that you may want, or your interest rate for borrowing will be higher than those who have excellent or good credit.

If you seek advice on how to improve your credit score or simply require more information, please visit: Ultimate Guide to Credit Scores

Try Our Car Finance Calculator?

Rates from 10.9% APR. Representative APR 19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply

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Rates from 10.9% APR. Representative APR 19.9%

Frequently Asked Questions.

Why use Bright Motor Finance for motor finance?

At Bright Motor Finance we have many lenders on our panel, so we can make sure you are getting the best motor finance deal for you. Plus, we do all the admin, paperwork and negotiations with the dealer.

What is the difference between HP & PCP?

HP and PCP car finance are fairly similar to one another. However PCP tends to have lower monthly repayments. Although that the full amount that will need to be repaid is generally higher than with hire purchase.

PCP works by having a loan for the difference of the vehicles price when it is brand new, and the anticipated vehicle value when the agreement has been completed. This is because the vehicle will of course, depreciate over time.

HP works by usually paying a deposit of around 10% of the cars initial value, and then this value will be paid off in fixed monthly instalments. Car dealers as well as brokers (such as ourselves) can arrange a hire purchase finance agreement.

What is a car finance brokerage service?

In essence, a car finance broker acts as a middleman between the customer and the lender. A car loan broker handles all the paperwork and negotiates with lenders on your behalf. By doing this, you can rest assured that the broker is fighting for you to get you the best deal. Our goal is to make your car finance journey as simple as possible. As well as this, car finance brokers such as ourselves have deals that aren’t usually available to the general public. Instead of charging the customer, car finance brokers charge the dealerships.

What if I have been refused by other brokers?

There is still hope even if other brokers have rejected you in the past. We offer a number of finance options for those with bad credit scores at Bright Motor Finance. We will conduct a hard credit check when you apply for car finance through us, which may negatively affect your credit score. Especially if they were conducted within a short period of time. As a result, it is recommended that you wait between 3-6 months before applying for car finance again after being declined.

What if I’m struggling to make payments?

Having trouble making your car finance payments? You have a number of options available to you. One of the following charities/organizations can provide you with free, independent advice. 

Can I change my mileage on PCP contracts?

In a nutshell, the answer is no.

This is because the car’s resale value has already been calculated once you’ve signed your PCP car loan contract. It is crucial to know that exceeding your agreed-upon mileage allowance will result in additional penalties at the end of your PCP contract.

How does car finance affect my credit score?

Initially, asking for a car loan will typically have a negative impact on your credit score due to the intensive credit checks that lenders will perform. You should be aware, however, that if you make your car finance instalments on schedule. This will almost certainly improve your credit score.

What is APR?

The annual percentage rate (APR) is the total amount charged for the loan. APR, on the other hand, comes in two varieties. Exact APR implies that the rate displayed to you is the rate you will receive. Representative APR, on the other hand, suggests that 51 percent or more of those who apply for financing will receive that rate. This means that customers with weak credit may face a higher APR.

Representative APR is commonly used to advertise a company’s rates. After you have provided the lender with all of the essential information, they will be able to provide you with your specific APR rate.

GAP insurance and do you need it?

What exactly is it?

Gap insurance is an abbreviation for Guaranteed Asset Protection.

Gap insurance is a type of insurance that is meant to cover the difference between the amount your insurance provider pays out in the event that your car is written off or stolen and the price you paid for the vehicle. However, you should be aware that gap insurance supplements, not replaces, your usual car insurance.

So, when do you need gap insurance?

Gap insurance can be beneficial in a variety of ways. First and foremost, if you took out a large loan to purchase your car. As previously said, gap insurance would be advantageous if your automobile was stolen or written off. This is due to the fact that the gap will pay off the existing debt.
Furthermore, gap insurance may be advantageous if you are concerned about the depreciation of your vehicle. In the first year, a brand new car will lose 15-35 percent of its value. As a result, gap insurance might assist you in receiving a larger reimbursement if your automobile is written off after it has already depreciated.

Where can I purchase gap insurance?

Thanks to Bright Compare, comparing gap insurance quotes has never been easier!

What Happens If There Is An Issue With The Vehicle?

If the vehicle is defective upon delivery, you can simply refuse it and return it to the dealership.

Can I alter my car if I finance it?

You can, but you must first obtain authorisation from the financial firm before making any changes.

Is there anything to consider?

Yes.

  • You will not own the car until you make the final payment.

  • You are also not permitted to sell or modify the vehicle in any manner without receiving permission first.

  • Third, monthly repayments are typically higher when compared to PCP and other car leasing plans.

  • Finally, it can be expensive if you only need a short-term arrangement

What affects the cost of my car finance payments?
  1. Your deposit size
  2. How long your car finance agreement will last
  3. The interest rate
  4. What car do you choose?
Assessing my credit record?

You can also see your credit report by contacting a company such as Experian or Equifax before you make an application online. It costs about £2. You can see your credit report online and determine whether it is accurate and correct. If you spot any errors, you can request that a note is added to your report for lenders to see. If you are struggling to obtain even bad credit loans then it makes sense to check your credit report before you make any more applications.

It may be that there is an error that needs to be corrected first. Remember that every credit arrangement you apply for will record a search against your file, and too many of these may put lenders off as it suggests you could be over-extending yourself with finance. So before you apply for your benefits car loan, pause on any other finance applications for a period of time and focus on repaying every other credit arrangement that you have fully on time – including utilities, mobile phones, credit cards and so forth. This will put you in the best possible position for your application.

What Information Do Lenders Ask For?

When you apply for your car loan, the lender will ask to see evidence of your benefits income. This could include jobseekers allowance, disability allowance, Universal Credit or another form of benefits income. If you also have another source of income such as a job or pension, the lender will also ask to see this information. They will then carry out a credit check as part of the application process.

 

Will I Need Insurance Once I Have Financed My Car?

When you buy a car or any other kind of vehicle, you need to have accompanying insurance for it, if you are planning to drive it, or keep it on the road. There are three main types of motor insurance; third party coverage, which covers legal claims from third parties. This is the minimum insurance that most drivers are required to have.

The second level of motor insurance is third party, fire and theft. Drivers sometimes choose this to cover themselves against legal claims from third parties (which can be extremely expensive to contest in court without insurance), and the other major risks of fire or vehicle theft.

The third level of cover is called comprehensive level, and it covers the broadest spectrum of situations – with notable exceptions which insurers will detail. This type of insurance tends to be taken out when a driver buys a new car. Again, you can compare insurance products online with us in just a few clicks.

So remember, when you need motor finance for any kind of vehicle, our loan comparison site can link you up to the best deals on the market from trusted providers – in just a few minutes. Simply enter your details to get started.