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Why should I choose online car finance?

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When it comes to buying a new car, you have several options to choose from. You can save up some money and pay cash. You can part exchange your existing car and use that to pay for your new vehicle. Or you can use car finance to pay for the purchase of your new car.

Car finance is becoming an increasingly popular way to fund the purchase of a new car. A combination of competitive packages, the ease of understanding your credit rating, and the sheer number of providers available, means that car finance is a more viable alternative to traditional car buying methods.

With all the different car finance options on the market, its easy to get a bit confused by the sheer volume of options to choose from. Here’s why you should choose online car finance to fund the purchase of your new car, rather than heading to a dealership to do your finance deal.

1. It’s quicker

Online car finance applications are much quicker than they used to be. Many companies will be able to provide you with an instant decision on whether you will be able to find a car finance package or not. This will be based on you answering a few questions about your personal and employment history. You will need the last few addresses you have lived at, and also the address of your places of work over the previous three years.

This will be used to check your credit history. They will then give you a decision based on this analysis.

Tip: You should choose a company that will conduct a soft credit search on your file. This means that your finance application won’t be recorded on your file, something that can potentially affect your credit rating.

2. You can compare a variety of different options

Another good thing about online car finance is that you will be able to compare packages from a wider variety of lenders than you would if you went to a dealership.

Most car dealerships will have their own preferred car finance providers, normally arranged through some sort of commission-based system. So it is in their interest to push you towards taking a car finance package from their preferred lender. But this is not necessarily the best finance option for you.

By applying online, you can choose a provider that is offering you the most attractive provider. When you look for a provider, you should search for a company that provides finance from a wide panel of different lenders. This can range from the traditional high street banks and their finance options, to more specialist providers that offer packages to those with a credit rating that may not be as spotless as others.

If they do not advertise who they work with on their website, then you should have a look around for a provider that does.

Tip: Make sure you choose a finance provider that will provide a no-obligation quote when you apply. You don’t want to be pressured into accepting a deal through some terms and conditions that you weren’t aware of. Ethical lenders, like Creditplus, will give you all the information you need to make a decision based on your personal financial circumstances.

3. Find out what you can afford before you commit

The best part of choosing an online car finance package is that you can find out exactly what you can afford before you start searching for a car. If you have found a car already, then that’s perfect. But in many cases, you will want to have a look at how much you can afford based on your credit history, before you get your heart set on that perfect new car.

With car finance providers like Creditplus, you will be assigned a dedicated customer advisor when you apply. Their role is to talk you through the car finance process and help discuss the options you have available. As part of the process, they will give you an idea of how much you can borrow. This will be calculated based on how much of a deposit you have, and also how high a monthly payment you can afford/are willing to pay.

Once you have an idea of what you can borrow, you can then go out and start looking for your new car.

4. Choose a car from anywhere, not just the forecourt

When you get finance from a car dealership, you are limited to the vehicles that they have on sale. Each dealership has their own sales targets, and so the salesperson is likely to push you towards a certain vehicle, whether it’s the one you really want or not.

Online car finance means you can search for a car anywhere in the country. So you can search by exactly what you want or need. Creditplus works with a network of trusted dealers all across the country, so you can search through thousands of cars currently up for sale. Why not take a quick look now at our best car deals?

If you do decide to buy a car through our network of dealers, than Creditplus can help you find, fund and then deliver that perfect new car direct to your doorstop. We’ll even give the car an RAC approved check, to ensure that it’s in tip-top shape when we hand you the keys.

5. Online car finance is protected

As well as all the above benefits, online car finance is also heavily protected. Make sure that you choose a finance provider that is fully accredited and regulated by the Financial Conduct Authority. That means they have been audited and checked by the government to ensure that they meet all the requirements on consumer protections.

When you buy online, you also get a 14-day guarantee, meaning you can return the car to the dealer and get a full refund on your finance package.

As always, make sure you choose an ethical lender as your car finance provider. Take a look at Creditplus’s ethical lending policy to see why it’s so important.

Your Best Deal Online

If this article has sparked your interest in online car finance, apply online today and we'll work with you to get you into a car you love!

With cars starting at £91 per month, there has never been a better time to upgrade your car!

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