Motor Ombudsman
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CAR finance is a tool that allows people to own a vehicle that would usually be out of their reach if they had to pay for the vehicle in cash.

The majority of people who drive a car, do so through using car finance even if they have bad credit, but what do you need to know about car finance?

Can You Only Find Finance from a Dealer?

Many people believe that you can only agree to those finance deals that are offered by dealerships. This can sometimes mean that people then opt to take out a loan which is sometimes not the best choice.

Therefore, when it comes to car finance, you are free to take a look around and find the best deals that are available to you.

Can I get car finance with bad credit?

Yes you can, there are several options on the market for people with poor and bad credit. You might need to get in touch with a bad credit car finance specialist.

Does Searching for Car Finance Affect My Credit Score?

If you carry out soft searches for finance deals then your credit score will not be affected. However, if you make full applications then your score can be affected and that will mean that providers could consider you a risk and refuse finance.

So, opt for a soft credit search and make sure you find the right deal before proceeding with a full application.

Does Car Finance Impact my Credit Rating?

Unlike making full applications for finance, which can affect your score, once you have finance in place and begin making payments on time, it will show lenders that you could be considered to be a low credit risk.

However, if you miss payments or make late payments then it will affect your score.

Is it Possible to Pay the Finance off Early?

You can pay off your finance whenever you choose and no lender can prevent you from doing so. However, what you need to be mindful of is that you could incur charges or penalties for doing so.

Will I Need a Deposit?

This all comes down to what the lenders are looking for. In most cases, a deposit is required as a way of ensuring that you can borrow the right amount in relation to the value of the car while it also helps to reduce the possibility of negative equity at a later date.

However, there are deals out there where you do not have to pay any sort of deposit as dealers are using it to attract customers. Whether you can afford to pay the deposit or not, ensure that you consider all options and find a deal that suits you best.

How Long Does it Take to Get Car Finance?

There some providers that require written personal details prior to providing the best deal that is available to you and this can take time.

However, in most cases, the entire process can be completed online which means that the process can be completed quickly and efficiently. You could even retrieve a quote from a provider and submit an application in a matter of minutes, enabling you to obtain the finance that you need.

 

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