Car finance is a way of
paying for a vehicle over time, it allows you to
spread the cost of the car over a chosen period by
making monthly repayments. We have three types of
finance options available to suit you, some of which
may require a deposit but that depends on the lender
you get accepted with. The three types of finance that
we offer are hire purchase, leasing and personal
loans.
Hire Purchase (HP)
This is a secured finance
option as you won’t own the vehicle until you have
made the last payment, you won’t be able to sell the
vehicle on without the lenders permission but you will
be able to return it. You may have to pay a deposit
but that depends on the lender you get accepted with.
You will then pay the balance, plus interest, in
instalments over the monthly term of your choice based
on how much you can afford to pay back each month. You
won’t have to pay a lump sum at the end of your
finance agreement, the payments will be fixed each
month and at the end of the agreement you will own the
vehicle.
Leasing
Car leasing is a long-term
rental of a vehicle. If you can’t get accepted for
hire purchase, then we may be able to offer you a
great leasing deal. You will have to pay a deposit or
initial repayment followed by monthly fixed payments.
This can be a great option as new cars get released
regularly you won’t have to worry about depreciation
in the value of the vehicle as you do not own it and
won’t have to worry about selling it when you come to
wanting a new car. The monthly repayments will depend
on the type of car you choose, the length of the
contract and the agreed mileage limits.
Personal Loan
We may be able to offer you
a personal loan to purchase a vehicle. This is where
you borrow the amount to cover the cost of the vehicle
which will be paid out to the dealership and you would
make monthly repayments over a period of time to cover
the amount you have borrowed. The APR on the loan will
be subject to credit checks and you will own the
vehicle from the outset.
What is APR?
An annual percentage rate
is the cost of the money you borrow over a year. For
example, If you owe £1,000, you have an APR of 20% on
your agreement then over the course of the year you
will pay back £200 interest on the money you have
borrowed. APR can vary between lenders which generally
depends on how much you want to borrow and your credit
score. If your credit score is poor then you will
likely have a high APR as the lender can view you as a
higher risk than somebody with a good credit score.
Eligibility and how to
apply for car finance
Many factors come into play
when seeing if you are eligible for car finance,
including your income, age and affordability. If you
would like to see if you are eligible for car finance
then the application process is simple, apply online
at Get Me Car Finance. It doesn’t take long to fill
out the application form and we only ever use soft
searches which won’t affect your credit history when
checking your eligibility. All we need is some details
from you and our underwriting team will get your
application processed quickly as possible as we know
it can be frustrating to wait to see if you will be
approved. Once your application has been processed you
will receive an email or text to let you know if it
has been successful, you will then be allocated a
member of our fantastic team to go through the
application process with you step by step and help you
locate and secure the perfect vehicle. If your
application for hire purchase has not been successful
then we may be able to offer you leasing, if this is
available you will receive an email or text message
which you can respond to discuss this option further.
Our team are very friendly and always on hand to
answer any questions you may have.
And Interesting question asked by quite a lot of people, however the answer is not an easy one. Car Finance applications can get paid out same day, they can be really really quick if there are no strange problems with the application, however if you have poor credit you may be required to upload bank statements and also driving licenses to the brokers. This can take time and the underwriters need time to analyse applications. With recent events (2020) of corona virus infections, car finance apps have been taking over 7 days at some stages and customers getting annoyed and frustrated has been the norm.