Cars On Finance: Our Answers To Popular Questions

Are you interested in cars on finance? Do you want to purchase a car but not pay in full? You might be able to get vehicle financing! How does auto financing work? What are your options, and how can you apply for them? This guide will teach you all you need to know about car loans, including eligibility conditions and application procedures.

How Does Car Finance Work?

A car loan is the most common option for people who want a new car but do not have the cash to pay for it in full.

Because this is one of the most challenging components of purchasing a vehicle, we will make it as simple as possible for you.

Getting cars on finance works in the same way as other types of borrowing. You pay your lender back in monthly instalments over time. They will also charge you interest on the money that they lend you (known as the Annual Percentage Rate, or APR). Before selecting whether or not to investigate your car finance options, you must first determine how much interest you will pay.

When it comes to vehicle financing, our experts can show you what options are available to you.

What Kinds Of Cars On Finance Deals Are There?

Car financing is available in a variety of types. You have several options when it comes to leasing a vehicle. You will make fixed monthly payments over a specified time period.

Plus, all fully paid financial charges will be deducted from your credit score as well. In general, paying off your car loan in full may assist to enhance your credit score.

Here are the two most popular options for vehicle financing arrangements:

Hire Purchase (HP):

  • The loan serves as collateral for the vehicle, and a down payment is required from the start.
  • You finance the total cost of the car over a set amount of time.
  • You own the car outright when you complete the last payment.

Personal Contract Purchase (PCP):

  • Borrowers repay the guaranteed minimum future value of the car.
  • You can choose to keep the vehicle, return it, or trade it in.
  • If you decide to keep the car, you will have to make a last “balloon” payment.

Is It Possible To Secure Car Loans?

You’re probably wondering if you’re eligible for car financing. This is most likely the easiest answer! Most lenders will likely approve your vehicle loan application if you have a job and a steady source of income. However, there are more elements that influence a person’s capacity to obtain vehicle financing.

  • Your credit score: A strong or exceptional credit score raises the chances of lenders approving your loan request. Lenders may reject your application for vehicle financing if your credit score is low. Nevertheless, don’t stop applying because of this! Bright Motor Finance may be able to help you acquire car financing despite your poor credit.
  • What is my income? : Although it may seem obvious, your ability to obtain alternative motor finance may be determined by your income. Because you will most likely make monthly payments in this manner if you have bad credit. It’s a good idea to arrange your finances before looking into car leasing.

Can I Get Cars On Finance If I Have Bad Credit?

Even if you have low credit, you may be able to get car finance approval on your application. Your loan, on the other hand, will usually have a higher interest rate. Because lenders see these borrowers as riskier, they will charge higher interest rates to protect themselves from those who may default on their loans. In addition, if your credit score is low, you may be required to make a larger down payment.

There’s some good news! Even if your credit isn’t perfect, lenders could still approve you for excellent cars on finance! We’ve seen several customers get a terrific deal once we matched them with the right lender.

However, unless absolutely necessary, it is always better to work on improving your credit score before applying for car loans. Credit reference agencies (CRAs) offer useful advice to assist you to boost your credit score.

What About No-Deposit Car Loans?

You can receive a car loan with no down payment. This means that no deposit will be required at the time of purchase and that the expenses will be covered in other ways. Your credit score will, nevertheless, play a role in this. Lenders are more likely to approve your no deposit car finance application if you have a good credit score. 

Lenders may refuse you no-deposit car finance if you have a poor credit history. They don’t want to take a chance on someone with a history of late payments. If your circumstances are similar and you actually desire a new vehicle. We recommend contacting our staff if you do not have any funds for a deposit.

Can I Get Cars On Finance Without A Guarantor?

If you are unable to make your monthly payments, a guarantor may be able to assist you. You could designate this task to a family member or close friend.

You are more likely to be approved for no-guarantor vehicle financing if you have a solid credit score and a steady salary. Lenders may accept your application for no guarantor vehicle finance if you meet these standards.

The good news is that we may also be able to help. Because we may have access to lenders who will take a different view of your circumstance. Even if lenders have already declined your application.

Even if your credit is poor, having a decent income will be your most valuable asset when applying for no guarantor car finance.

Can I Apply For Joint Vehicle Financing?

If you frequently travel with a close friend or family member, you may be eligible for joint car finance. To accept your application, some lenders demand you to live at the same address as them.

The monthly payments for the vehicle are yours and your co-responsible applicant’s. Joint car finance is a terrific choice if both of you will be driving the car. It’s critical to understand that not all lenders will offer this type of financing.

It’s also worth noting that some lenders may reject to provide joint car financing to customers who have bad credit or limited financial resources. Use precaution and a broker to help you choose a suitable lender for your financial situation.

What Is The Application Process For Car Financing? Is My Credit Score Important?

If you want to look at cars on finance, your best bet is to go with a broker. A broker will negotiate on your behalf to get the best car loan packages for your specific needs. The steps are straightforward:

  • Please send us your contact information so that we can contact you. We’ll call you back and go over your options before proceeding.
  • Get a quote if you want to know what’s available before we begin.
  • As previously stated, your credit score is critical in determining what car finance options are accessible to you.

Finally…

We hope we have answered the majority of your questions about vehicle financing and how it works.

Please do not hesitate to contact us if you have any more inquiries. Please contact us by phone or online if you have any more inquiries!

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Rates from 10.9% APR. Representative APR 19.9%