So you’ve decided that car finance is an option for you when it comes to buying your next car. If you’ve never taken out a car finance deal before, the process can seem a bit complicated. But car finance has never been simpler. Here is our step-by-step guide to car finance, so you can quickly get behind the wheel of a fantastic new car.
Before any sort of finance deal, not just car finance, you should have a look at your budget to see how much you can spend per month on a finance package. Look through all your monthly expenses and deduct that from your incomings. Don’t forget to include money for things that aren’t your regular bills and payments. Think about how much you spend on nights out or trips with the family.
It’s important you are honest here so you don’t end up either struggling to make your payments or having to cut down on important things to pay for your car.
The next step is to look at a car finance calculator to see what sort of package you might be offered. To get an accurate idea, you’ll need to know your credit score, so now is the time to contact your bank or a credit check agency to find out what credit rating you have.
Use the car finance calculator to see what sort of amount you can borrow and what it’s likely to cost you each month. Remember, this is just a rough guide but, providing you’ve put in accurate information, it should give you a clear idea of how much a package will cost you.
When you apply for car finance, you’ll need to provide some information to complete the process. First, you’ll need to prove your identity. You can do this with your driving licence. Some providers will let you use a passport, but most want a driving licence. This doubles up as proof that you can drive the vehicle you are financing!
You will also need to prove your income. If you are in a full or part-time role, you can use your payslips as a proof of your financial status. Otherwise, you can use bank statements to show your income. If you are self-employed, then bank statements will be enough, although there may be additional questions to ensure you can afford the payments.
You’ll also need to supply your address history. You can do this with a recent utility bill. If you’ve moved house in the last 6 months, you’ll need your previous address too.
Next step is to apply online. Applying with Creditplus only takes a few minutes. Once you’ve gone through and added all your details, you’ll soon be sent a no-obligation quote with more detail than what you saw in the car finance calculator.
When you apply with some finance providers, your application will be recorded on your credit rating and can negatively affect your credit score. But with Creditplus, we conduct what’s called a soft credit search, so no trace is left on your credit file. Meaning you can get a quote without negatively affecting future finance applications.
After you’ve completed your application, a Creditplus customer advisor will be in touch to talk you through your application and what options are available. We will compare car finance deals from a wide panel of different lenders, specialising in dealing with customers from all sorts of backgrounds. Whether you have a spotless credit file or a few issues, we will work hard to find you the best possible car finance package.
Now comes the fun part – choosing your car! You may already have found your dream vehicle, so this bit is easy. But if you haven’t found one or have a few ideas of what you want but don’t know where to start, Creditplus will help you find the car of your dreams. Searching thousands of dealers across the UK, your ideal car is waiting for you somewhere.
But it’s not just cars we can find. We can also help you find, fund, deliver motorcycles, vans, campervans and even classic cars! Just ask your customer advisor for help.
When you have found your dream car, we’ll send you across the finance agreement to check through, as well as a breakdown of all the costs of the car finance package. So you can see exactly where your money is going and what all the charges are.
Once all the paperwork has been sorted, it’s time to get you your car! If you’ve found a car through Creditplus, we’ll deliver the car direct to your doorstep (or a place of your choice!). Before we send it to you, we’ll carry out an RAC approved vehicle check to spot any issues and fix them if we find them.
And that’s it! You’ve now got a fantastic car with an equally fantastic car finance package. The time has come to take your car for a spin! Will it be a road trip with the family, a quick cruise around town, or a zoom along your nearest motorway? Whatever you do, we’ll be there to ensure your first moments with your new car are what you expected.