Yes - Once you arrange car finance, you have the freedom to choose a car from any car dealership in the country. No matter where you are located in the United Kingdom, and whatever type of car you wish to drive, car finance puts you in the driving seat with options.
There are dealerships in the country who offer finance packages of their own, or through specially selected partners. However, choosing a finance package in this way limits your options, and you may not be sure you find the best deal for your requirements. When you use NowCompare, you can be confident you improve your options in finding suitable car finance options.
When you use NowCompare, you’ll find the process of obtaining car finance is simple.
You can check a wide range of finance options, with suitable options for people of all backgrounds, needs and requirements. Your circumstances impact on the finance deals you can choose from, so be sure to have your details at the ready.
When you make your application, if it is approved, a customer service specialist will contact you to confirm the approval and provide further information.
Once the details have been confirmed, and you state you wish to proceed, you will provide the lender with valid documentation, and then the fun part of the process begins. This is when you can search for a car, safe in the knowledge you have funding in place to help you get behind the wheel.
If you have already selected a car and need finance to finalise the purchase, you are well placed to conclude the transaction.
Once you choose a car, you should contact the lender with relevant details, and then the process is complete.
You may think the term car finance is a clearly defined one, but you can use car finance for other vehicles too. If you are keen to buy a van, a motorbike, a motorhome, a caravan or even a horsebox, you can obtain car finance when doing so.
If you have been refused credit in the past or you know you have poor finance, it is natural you will have concerns about applying for finance. However, there is good news because many lenders can help drivers arrange car finance, even if they have been refused finance in the past.
There is no such thing as guaranteed car finance. Every application is assessed on its merits, and your circumstances will influence the outcomes. Your age, your income, your employment status and the amount of money you require in the loan will all factor the lender’s decision. The condition of your credit file will also impact the decision.
However, there is a range of car finance options to choose from, and many lenders provide loans which are suitable for drivers who have poor credit. Even motorists who have a CCJ on their file or who have been declared bankrupt can obtain finance.
Your current financial and employment status is hugely significant. Your credit rating often considers your past more than your present state or future, so don’t be too concerned about mistakes in the past coming back to haunt you.
If you can show that you have regular employment and basic income, you will have a good chance of arranging car finance.
There are no deposit car finance options; there are deposit options; there are part-exchange solutions and even guarantor car finance options. There are also some lenders who specialise in bad credit finance solutions. With a variety of options to consider, you should find you can obtain car finance to suit you, and NowCompare is here to help you find your ideal solution.
While a deposit isn’t required for many car finance options, some lenders do take a deposit, and some lenders accept a part-exchange. Part-exchanging your current car helps to reduce the amount of money you need to borrow, which is of interest to many applicants.
Car finance companies understand many people are looking to arrange the most affordable car finance solution. Therefore, offering a part-exchange arrangement helps the borrower to find a more affordable solution, allowing them to pay a smaller amount of money each month.
This is of benefit to the borrower, but the lender can also benefit, because more borrowers will be willing to apply for lending, and the borrower will be more likely to pay the money back. Offering a vehicle in part-exchange also indicates the user is invested in the transaction, another factor which increases the likelihood of the lender maintaining payments.
No matter your credit score, lowering the amount of money you need to borrow is of benefit, so if you can part-exchange a vehicle, doing so may help you obtain a more suitable finance agreement.
There is a lower age limit for car finance, with applicants required to be at least 18 years old. As for older drivers, there is no set age-limit, with each lender firm having their criteria. You’ll find personal circumstances often dictate who an individual lender is happy to provide funds to, so whatever your age, you should accurately present your applicant.
The car finance industry contains a lot of firms, including specialist companies. If your main focus is on finding affordable car finance in your later years, you will find lenders who tailor packages to your needs.
If you are young, you may find some lenders have a specific lower age-limit, or that some lenders want to see established credit history. Some applicants may find this challenging, but there are smart ways you can develop a credit history, including:
• Opening a bank account
• Arranging an affordable type of credit, such as a mobile phone contract
• Make sure you are on the electoral roll with your correct name and address
If you don’t have any credit history of note, you may wish to consider a guarantor loan. This style of finance agreement sees someone who knows you very well vouching for your ability to pay.
If you are unable to pay the loan, the guarantor becomes responsible for the payments. Therefore, acting as a guarantor is a significant responsibility. Before someone agrees to act as a guarantor for you, they should be aware of the duties involved with the role. An ideal guarantor is someone with a good credit history and who would be confident of arranging suitable car finance for themselves.
In the majority of cases, you do not need a deposit to obtain car finance. However, some lenders are willing to accept a deposit when arranging car finance.
For many borrowers, placing a deposit on car finance is helpful because this reduces the amount of money that needs to be borrowed. This can increase the options available to a borrower, it can reduce the amount of money which needs to be paid on a monthly basis, and it can make the lender feel more confident about the process.
You shouldn’t feel as though a deposit is mandatory in obtaining car finance, and many applicants do not provide a deposit. However, it is an option provided by many lenders, and some applicants may feel offering a deposit is the best solution for their needs.
Individual lenders may require specific documents, but you’ll find that the majority of lenders look to obtain similar documents. You will generally be asked to provide materials that offer proof of licence, proof of income and which verify your address.
You can usually prove your income by offering a payslip or bank statements. You can generally provide your proof of address by submitting a utility bill or bank statement. When your application is approved, the lender will usually state what they need you to provide to complete the application process.
No matter your credit score, you’ll be required to provide this level of documentation. If you a lender requires further information about you to make an informed decision, they may request more information from you.
As an example, if you are self-employed, the lender may require business accounts or bank statements which indicate that you are in employment and how the business is performing.
If you are in any doubt as to what you need to offer and what sort of document is best for this objective, feel free to contact your lender, and they will clarify their requirements.
Individual lenders may require specific documents, but you’ll find that the majority of lenders look to obtain similar documents. You will generally be asked to provide materials that offer proof of licence, proof of income and which verify your address.
You can usually prove your income by offering a payslip or bank statements. You can generally provide your proof of address by submitting a utility bill or bank statement. When your application is approved, the lender will usually state what they need you to provide to complete the application process.
No matter your credit score, you’ll be required to provide this level of documentation. If you a lender requires further information about you to make an informed decision, they may request more information from you.
As an example, if you are self-employed, the lender may require business accounts or bank statements which indicate that you are in employment and how the business is performing.
If you are in any doubt as to what you need to offer and what sort of document is best for this objective, feel free to contact your lender, and they will clarify their requirements.
Your income dictates what you can afford to pay back every month, so it is natural for lenders to have an interest in your income. If you have a low level of income, you may have concerns as to whether this impacts on your application, but there is no minimum level of income required to arrange car finance.
Each lender is unique, and they consider several factors. Yes, your income influences the decision, but many factors shape the level of loan a lender is willing to offer.
As your income is going to be used to repay any car finance you are approved for, the lender will always want to know what kind and amount of income you will be relying on to do just that.
If you require car finance that is suitable for people with low income, there are specialist lenders who may help, and at NowCompare, we are here to assist you.
The majority of lenders require applicants to hold a full driving licence to obtain car finance, but this isn’t the case with every lender. There will be some lenders willing to offer finance to people who have just passed their driving test, to applicants who only hold a provisional licence and to applicants who hold no licence.
However, be aware many lenders require applicants to hold a full driving licence and proof of this licence is requested early on in the process
If you have been refused a loan in the past, this is no barrier to obtaining a loan now. However, being denied a loan is no barrier to securing finance, and some lenders specialise in providing bad credit car finance options.
Your current financial circumstances influence decisions made by lenders, so your past doesn’t have to be a challenge to overcome. Even people who have been declared bankrupt or who have a CCJ on their file can obtain car finance from some lenders.
If you are looking for a lender who offers car finance to people who have been refused a loan, NowCompare is here to help.
Yes. If you have been refused credit before, you may have concerns about arranging a car loan, but there is no reason why this should prevent you from finding a lender who is willing to support you.
At NowCompare, we are pleased to say we have helped many people arrange a car loan, even after they have been refused credit. A growing number of lenders are happy to offer support to applicants in this situation, and a poor credit score is no barrier to arranging affordable finance.
Yes.
If you have a County Court Judgment, a CCJ, which is resolved or still exists, you can still arrange car finance. If you are in an Individual Voluntary Arrangement, an IVA, you can still arrange car finance.
Even if you have defaulted on a finance agreement in the past, you can still arrange car finance.
Not every lender is willing to applicants in this situation, and not every lender is ready to offer an affordable finance agreement to these applicants. However, some lenders specialise in arranging car finance with applicants who may struggle elsewhere.
Your credit history is an essential feature for lenders to consider, but lenders also review your current financial status. Therefore, just because you have experienced financial difficulties in the past doesn’t mean that you can’t arrange car finance now.
NowCompare is here to help you arrange car finance, regardless of your previous or current financial circumstances, so get in touch if you need assistance.
Anyone who is in, or has recently been in, a Debt Management Plan, a DMP, or a Debt Relief Order, a DRO, it is understandable they may find challenges in obtaining car finance. However, it is possible for these applicants to arrange car finance, and some lenders specialise in arranging finance for people with a DMP or DRO.
NowCompare works with an extensive array of lenders, and if your circumstances require you to find a specialist lender, we can assist you in the process.
There is a lot of advice about bad credit rating finance options and good credit rating options, but fair credit rating solutions are not discussed too freely. As you would expect, some lenders would prefer to offer credit only to people with a good credit score, but applicants with a fair credit rating should feel confident about arranging finance.
There is an extensive selection of lenders who are happy to provide you with finance based on your current financial status as opposed to your credit score. If you are not overly confident about your credit score, we can help you find a viable and affordable finance solution.
It is perfectly natural for people looking to arrange car finance to ask how much money they can expect to borrow. However, the answer depends on many things. The loan amount you can borrow is likely to depend on your circumstances and the lender. The variables involved with these two elements make it impossible to state with certainty how much an applicant can borrow.
However, no matter the sum of money you are keen to borrow, the variety of car finance lenders should ensure you can arrange a viable and affordable loan.
If you have just arranged car finance, you have the “right of withdrawal”, which is commonly referred to as a “cooling off” period. This allows you to withdraw from the agreement within 14 days of arranging finance.
If there are credit and interest payable in this period, it needs to be paid, but borrowers are protected by the Consumer Credit Act 1974.
A borrower isn’t allowed to cancel the agreement because they have changed their mind about the car or no longer like the vehicle. Also, any deposit is considered outside of the terms of the credit agreement, and may not be refunded. However, if there is a legitimate reason for the contract to end, it is possible for borrowers to do so in 14 days.
If the vehicle was damaged, harming the finance company’s ability to recover funds, the borrower may be responsible for the damage or at least the loss of money.
If the “cooling off” period no longer applies, the borrower needs to settle the finance. The borrower should contact the lender and request a settlement figure. The settlement figure is the amount of loan, and interest, outstanding on the agreement. This figure is required to be paid off, in full, to conclude the deal.
When an agreement is concluded, the borrower can apply for new finance.
Another option to consider in exiting a finance agreement is applicable when at least 50% of the total loan amount, plus interest, has been paid. In these circumstances, it is possible to obtain Voluntary Termination, where the car is presented to the finance company, and the agreement ends.
If you already have finance, lenders will likely view you as a suitable candidate for car finance. If your payments are up to date, you indicate you are a responsible applicant, and that your credit score is likely to appeal to lenders. Therefore, it is expected most lenders will view their application as suitable.
Lenders will carry out a credit check on you and your application, but if this is positive, you are in a great position to arrange car finance.
Of course, if you struggle to make your current payments, or you have missed payments on your credit rating, you may struggle to obtain car finance from some lenders.
However, there is a wide range of lenders operating in the car finance. Some lenders specialise in applications from people with bad credit or who have missed payments. NowCompare is on hand to help you find a suitable option.
The settlement figure, in terms of car finance, is the amount of money that remains outstanding on the loan. The settlement figure includes interest.
The settlement figure is an essential figure for many reasons. If you wish to pay off the outstanding loan, this is the sum of money you need to do so.
NowCompare understands the importance of car finance, and we want to help you feel confident about the process. If you have any further questions about car finance, please get in touch.
