Car Finance Eligibility Check

Car Finance

Rates from 10.9% APR. Representative APR 22.45%

 

Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 22.45%, the monthly payment would be £153.29, with a total cost of credit of £2,357.76 and a total amount payable of £7,357.76. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

What Is Car Finance Eligibility?

Deciding on the perfect car is a big decision to make and is a challenge in itself. Then, you have to choose which finance deal is best suited to your needs, and that can make it even trickier. There are several routes you need to consider and at Car Loans UK, we are here to make it as smooth a ride as possible. With our smart technology, we help you shop around for the best deals, so you can choose the right one for you.

But first, we need to explore what car finance methods exist and learn about the options available to you.

Car Finance

Use our finance calculator

Find out how much you could borrow

 

Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 22.45%, the monthly payment would be £153.29, with a total cost of credit of £2,357.76 and a total amount payable of £7,357.76. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

How Does Car Finance Work?

Car Finance

The Initial Deposit

This step isn’t always required. Although, placing down a deposit when completing a car finance agreement is highly recommended.

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Repayment Plans

Depending on the agreement that has been put in place for example HP, PCP & CS, your repayment plan may vary.

Car Finance

Contract Completion

Upon completion of your contract, you will then have a number of different options available to you. Which we will state below.

Car Finance Eligibility Explained

Car finance is essentially a loan that you can take out to pay for a new or used car. When buying a car, nearly every dealership will offer you a finance arrangement. This is because car finance is a major source of profit for them and, for you, it can be the ideal way to cover the cost of a new car.

However, there are several types of car finance out there. We take a further look.

If your credit limit allows, you can buy a car on a credit card.

Consider: the APR could be higher and not all dealerships accept credit cards. Those who do may levy additional fees as the card provider will charge them a percentage of the transaction.

Borrow the amount you need to purchase the car outright and then pay it back to the bank or lender. The APR on the loan might be high, but there isn’t a requirement for a deposit, and you will own the car from the start.

Consider: you’ll need a good credit rating in order to secure good loan terms and there could be penalties for paying the loan back early.

Discovering Your Car Finance Eligibility

As dealerships and lenders carry out a credit check as part of the car finance application process, it’s always best to check if your credit score is good first and foremost. If it is, it’s likely you will be accepted for car finance.

Yet, there are a few things to consider before you apply that could help your car finance eligibility. For example, you need to ask yourself how much do you need to borrow, how much can you afford to repay each month and whether there will be any additional costs involved when leasing or buying the car? And not forgetting the ongoing costs of fuel, insurance and so forth once you get the keys.

Once you are comfortable with your expenditure and know whether you have a good credit rating or not, you may have a better idea about your car finance eligibility.

For the best deal…

Finding car finance is quick and easy with CarLoansUK. All you need to do is enter your details and our smart technology will get to work instantly. We’ll find you quotes in seconds, so you can see which is right for you and apply, meaning all the paperwork will be down to us.

Our smart technology enables you to make the right financial decisions on all major car finance products. We have access to the best deals, 24/7 and our secure website means your personal and financial data will always be safeguarded.

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Car Loans UK is a trading style of BMG FG (UK) LTD, a company registered in England and Wales. (Company number: 12382512, Registered Address: 4th Floor, Kingsgate, Wellington Road North, Stockport, Cheshire, SK4 1LW. We act as a credit broker and not a lender and are authorised and regulated by the Financial Conduct Authority for consumer credit FCA no.928674. Car Loans UK can introduce customers to a limited number of finance providers based on overall credit profile and we receive a commission for such introductions, this will not impact the rate you are provided. We do not charge a fee to the customer for arranging the finance. This is a fixed payment or percentage, but can vary by lender. Further information is available on request. Written quotations on request. All finance subject to terms and status Data Protection Registration No.ZA766848.