Am I eligible for car finance?
- Step 1 – Get a quote
Apply for a no obligation quote and we will match you with one of our lenders and get you the lowest rate deal.
- Step 2 – Find your car
Choose any car from any dealership in the UK. Our car finance experts will run a full vehicle check for you.
- Step 3 – Drive away
Our experts will help with the paperwork and pay the dealership. All you need to do is collect your new vehicle.
If the idea of getting a car finance deal is a daunting prospect then we are here to take the fear away. It’s important to note that everyone is applying from a different circumstance and financial situation. There is no ‘one size fits all’ so we allow anyone to see if they’re eligible to get a car loan. We just need to gather some information about you (e.g. your name, age, address and contact details) together with a statement of your monthly income, your budget, how much you are able to afford to repay back each month and over what period. This takes a matter of minutes through our simple online application form. It allows our pool of accredited lenders to move onto the next stage and conduct a soft credit check and establish whether they can offer you a hire purchase (HP), a personal contract purchase (PCP) or a personal loan. We work with a broad range of lenders so there are plenty of financing options available. Even if you have bad credit or don’t have the deposit we may still find the deal that’ll work for you. How is this possible? Well, our pool of lenders specialises in a particular area of lending.
The credit check
A credit check needs to be carried out in order for a lender to obtain your ability to repay any loan or line of credit. This is one of the rules enforced by the Financial Conduct Authority (FCA) which regulates the financial industry.
It’s understandable that lenders need to have some certainty and reassurance that you are going to be able to repay a loan. That is done through input from the major credit reference agencies revealing the record of how you have managed the repayment of previous loans and lines of credit.
In the normal course of events, this might put you at some risk. If your application is rejected by a lender, your credit record is adversely affected and it may prove more difficult in future to secure the finance you need.
That is why, here at Car Finance Plus, we take the more cautious approach of first conducting a so-called “soft search” or “quotation search” before passing your application on to any lender for formal approval.
The soft search gives us a way of increasing the certainty of your eligibility for formal approval by establishing a few basic parameters involving your monthly income, your outgoings, the type of employment you have and any current credit commitments.
This is done before passing your application on to a lender, thereby significantly reducing the risk of rejection and the negative impact this will have on your future credit standing.
How much can I borrow?
So, when you’re looking to buy a new car one of the most important things to consider is how you are going to finance the purchase. Deciding on how much money to borrowing is mainly about being reasonable – how much do you need to buy the vehicle you want? Are you going to be able to afford the repayments? And, over what period of time bearing in mind that the more you borrow, over a longer period of time, the more any car finance is going to cost you?
Our pool of lenders can offer a loan from as little of £2,000 to £200,000 with a repayment schedule over 18 to 60 months. Our panel of lenders will then ascertain your affordability:
- the price of the car you want to buy;
- the amount of any deposit you have to put down, or the value of any vehicle offered in part exchange – the bigger the deposit, of course, the less you need to borrow and typically the cheaper your loan;
- the type of car – whether it is new or second hand, and if the latter, the age of the vehicle;
- your age
- your current employment status;
- your average monthly income;
- the affordability of your loan – your monthly income, less monthly expenditure, including commitments to any other current borrowing or credit; and
- your creditworthiness – calculated with reference to your record kept by the main credit reference agencies and indicating your success or otherwise in managing the past and current borrowing.
Once they have completed this they will be able to offer you the best lowest rate car finance deal.
When deciding how much you want to borrow, it is very important to keep in mind that if you bite off more than you can chew and default on the repayments, this adversely affects your credit rating and you are going to find it much more difficult to arrange any type of credit in the future.
Use our online calculator to check how much we could lend you and what your monthly payments will be.
Your employment status and your income
As we’ve just mentioned, we need to check your employment status and what your regular income is in order to review and potentially approve your application.
We can help you with your finance needs if you fit into one of the following categories:
- full-time employed;
- part-time or agency worker;
- taxi driver
While we are (legally) unable to guarantee the success of your application we have options to suit all financial circumstances. So, even if you have a low income we may still be able to help you find an affordable loan agreement. What’s more, most of our finance deals are with 0% deposit.