Car Finance Explained
If you are looking to purchase a new car using finance then read below for advice to help make the process as easy and effortless as possible.
Hire purchase is one of the most common types of finance, it is really simple - you hire the vehicle and make monthly repayments until you have paid off the agreed finance. Once all the payments have been made the car becomes yours.
Hire Purchase is a suitable form of car finance for people who struggle to get other forms of credit such as personal loans. People with all kinds of credit ratings as well as possible who do not want to pay cash for a vehicle. It is a convenient way to pay for a car based on budget and credit profile so you can get monthly payments which are affordable.
Are there any risks to car finance?
With all types of loan and credit agreements there are some risks, here in the UK car finance is regulated by the Financial Conduct Authority and lenders must follow responsible and ethical lending practises. The finance is secured on the vehicle, so if you don't keep up with the monthly payments your car could be repossessed. As with any type of finance missing payments can damage your credit profile.
Does The World of Cars offer guaranteed car finance?
You may see advertisements which 'guarantee car finance': the truth is no finance company can guarantee that you will be accepted. We have lending criteria that needs to be met and taken into consideration when reviewing your application but we work with you to ensure we understand the full picture of your financial situation.
Car Finance Bad Credit
Missed payments or arrears -we are happy to consider providing finance to people who have missed payments or have a bad credit rating. However, if you've fallen behind on repayments on other credit agreements it would be in your interest to do everything you can to get the repayments up to date quickly in order to improve your chances of being accepted for car finance.
IVAs - Do you currently have an IVA? If so, we'll need written confirmation from your Insolvency Practitioner that they are happy for you to borrow again. If you have had an IVA in the past which has been settled then you are welcome to apply.
Bankruptcy - If you are currently in bankruptcy unfortunately we are unable help right now. If your bankruptcy has been discharged then we are happy to consider your application.
CCJs - If you have outstanding CCJs you are still able to apply for car finance with us.
Refused Car Finance in the past?
We understand that you may have had bad credit in the past but our motto is simple, we care about your future not your past.
Here at The Car Finance Company we do not take into account whether you have been declined with us before, so we can still help you if you want to apply for car finance again.
Are you self-employed?
We regularly finance people who are self-employed, we might ask you to provide some documents such as proof of income for example bank statements for the past 3 months, but this will be explained to you by our team.