Useful Resources

Guaranteed Car Finance – Does it exist?

What is guaranteed finance in relation to a car loan you might ask?

The phrase relates to the product that someone is looking for but not the actual implied approval rate. Each and every person with bad credit making an application for buying their own car will be assessed.

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Ford Mondeo Mk IV

Ford Mondeo Mk IV (Photo credit: Wikipedia)

Most companies wont approve everyone for car

purchased when they have poor credit scores, ivas defaults , ccjs, (county court judgments), discharged bankrupts  etc. However there are lenders who are more sympathetic to those who have been turned sown elsewhere.  Whilst you are highly unlikely to find a company that will offer finance with no credit check,  many firms or loan brokers use a panel of lenders in which to place your application with depending on your circumstances so you will have a much greater chance of being accepted for a loan than you think.

When buying your own your vehicle you should choose a firm that not only has a good range of used cars but one that is best for your circumstances. So who do you chose?

Speak to the company on the phone and ask questions like what is the deposit if any and what is the APR?  Some firms wi

ll even offer no deposits schemes, but it is dependent on many individual factors. Here are some things you may want to consider.

 

  • Ask them what the acceptance rate typically is? How quickly do they approve?
  • Are there any hidden arrangement or administration fees or other costs?
  • How much can you borrow? Depending on your circumstances, some firms lend up to £50,000.
  • What documents do you need to provide?
  • How long are the repayments for? Do they have various flexible options?
  • Can you buy a car from any dealership or do they pick a company you must use?
  • How quickly can you drive the vehicle away?
  • What warranty does the vehicle have?
  • What are the car prices and the condition like? Are they competitive?
  • Is the car safe? Does it have service history and relevant paperwork?
  • If you are unemployed, disabled on benefits will they consider you too?

A good company will have a team of underwriters who will approve your loan or financial product on your new vehicle. The usual procedure is you are credit checked first and then allocated a credit limit so that you can later look at a suitable vehicle for your circumstances if approved.

Loans

Loans (Photo credit: zingbot)

There are so many factors that affect a lenders decision that it is impossible to cover it all in an article like this, however a couple of things that may help in your favour are if you are on the electoral roll and if you have lived at your present address three years or longer.

So do not fear if you have been turned down for a car loan elsewhere you may not need to get a car lease as there are companies out there that will help you own and get the car you want on the road by providing you the car credit you need to do so. With many online sites for cars on finance nowadays the job is getting easier.

Whilst guaranteed car finance companies may not truly exist, approval for a car loan in the UK is easier than you may imagine so the car of your dreams, be it a Mondeo or Mini what the car your desire you might be able to be sitting in it soon.

As with any financial decision you should never stretch yourself further than you can afford even though you may feel desperate or may need the car for work, whatever you do try to be sensible as these car finance plans are guaranteed to will be more than a bank loan maybe. All forms of lending are covered by the consumer credit act so you have some protection, but do your research first to avoid getting into something that you truly do not fully understand. Never be bullied into signing on the dotted line if you feel uncomfortable about signing up for any deal.

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