Car finance is a great way to spread the cost of a car over a fixed period of time, allowing you to potentially get a better car than what you could afford with just a cash payment. But if you’ve never applied for a car finance deal before, then you might mistakenly think that it can take a lot longer than buying a car with cash.
The good news is that it has never been as simple and straightforward to buy a car on finance. We’ve put together a quick guide below to let you know what steps you can take to speed up the process. Here’s the fastest way to get a car finance deal.
Before a car finance deal or any type of finance package, it’s always a good idea to know what your current credit rating is set at. That way you can get an idea of what sort of package you will be offered in advance. There are specialist car finance providers who offer packages to consumers with all types of credit rating, so there is likely to be a product available to you. Knowing what your credit score is just gives you a heads up on the variety and expense of the package you are likely to be approved for.
One of the things that can slow down the car finance process is not knowing exactly what you want from your car finance deal. So it’s always a good idea to do a bit of research in advance to see what you want the end result to be.
It’s always a good idea to approach any type of car finance package with an idea of your monthly budget. How much can you afford to spend on a car finance deal? You can use a car finance calculator online to get an idea of what sort of monthly repayments you can make. You should also look at how long you want the finance package to last for. The length of term is a great way to adjust the amount you spend each month, just make sure you’re aware of the interest being charged to see the total cost.
Finding the right car in advance is also a good way to speed things up. This can be knowing what make and model you’d like to have, or just a broader view of what you need the car to do. Creditplus offer a complete car finance service where we can help find your ideal car for you. Whether you know exactly what you want or not, we can help find the ideal car for you.
We all want to find the best car finance deal available to us, so you should use a broker that compares across a wide panel of lenders. That stops you having to apply individually to lots of different companies and saves you a lot of time. Seeing the variety of products available on offer will also let you choose between the perks of each one. Whether that’s simply choosing he cheapest possible package available, or looking for one that has the best perks and extras.
Just remember to choose a provider like Creditplus that conducts a soft credit search when you apply. This means that you will be able to see what products are on offer to you, but you won’t end up having the search recorded on your credit file. If multiple searches are recorded on your file, then a potential finance provider may see this as a red flag in terms of your quality as a potential customer. Lots of searches can indicate someone is desperate for credit, and therefore in a poor financial situation. While this may not be the case for your application, finance providers can be cautious and that will slow your application down.
You will need to be able to prove your identity, your address and your income when you apply for car finance, so it’s always a good idea to get your paperwork in order before you apply. To approve your ID, you’ll need your driving licence. You can sometimes use your passport, but most finance providers want to see that you are actually legally allowed to drive before they agree to finance a car for you.
Proof of address can be utility bills or council tax statements, as well as your driving licence (as long as it’s up to date!). Proof of income will be payslips or bank statements, normally covering the previous three months. If you are self-employed, you may be asked to provide additional proof of income, just to ensure you are in a position to make the repayments. The finance provider will let you know what’s needed when you apply.
All FCA (financial conduct authority) regulated finance providers have to provide their customers with a document breaking down all the different costs and charges incurred in the finance package, so you know the total cost of the agreement. Make sure you read this and are happy with all the charges. Knowing what you are signing up for will help speed things up when the time comes to start signing agreements and finally completing the finance package.