Many people dream of getting a car, but the process can be so expensive that it is sometimes difficult to make those dreams a reality. Financing a car is a great way to attain the vehicle you want as it enables you to choose the best car for you whilst paying in a manner you can afford.
If you are thinking about your dream wheels but have no idea where to start, keep reading to learn everything you need to know about car finance.
How PCP works:
There are a few basic criteria for obtaining finance for a new car, including having the best credit score possible. The main credit agencies Experian, Equifax and TransUnion all have different scoring systems so your score may vary by several hundreds of points between them, even if they all register you as having good credit.
If your credit score isn’t looking so healthy, don’t be too concerned. There are several quick and easy ways that you may boost your credit score so that you can apply to be considered for a loan at a reputable car broker.
At Quick Car Finance, we run a soft credit check before giving you a quote to confirm which products you’re eligible for. This will not affect your credit score, nor will we share your financial information with a third party until you have decided to go through with the purchase, which is when the lender will conduct a hard credit check themselves.
Breaking Down The Terms
The terms used when discussing car finance can be somewhat confusing to wrap your head around. That’s why we guide you through car finance without the hassle, making the process easy to understand.
Hire Purchase (HP)
Hire purchase is a way to finance a car in which you make an initial deposit of at least 10% of the overall purchase price while a lender buys the vehicle outright. You then pay the price back in instalments to the broker, with interest, every month until you attain full ownership of the car.
HP is a popular option as you can still achieve your goal of owning a car but at an affordable pace of one to five years. If you have a low credit score, getting HP is a great idea as your car can be used as collateral.
There is also the option of gaining car finance without any upfront payment, such as the no deposit method. Usually, your collateral is managed by paying back larger monthly instalments or by part-exchanging your current vehicle.
You can buy a new or used car without a deposit and pay back the loan over 3 or 4 years. Keep in mind that interest is included, so you will have to pay for the interest of the loan as well.
The annual percentage rate (APR) is the amount of interest you pay each year, which is the total charge of borrowing including the fees on top of the loan. You will know the APR before you buy your car, so you don’t need to worry about any surprising hidden costs.
Which Documents Do You Need?
Different lenders require different documents, but there are a few pieces of information that are always useful to have on hand when financing a car.
You should expect to provide proof of identity to the broker, such as a driving licence or passport. It is also likely that your lender will ask for proof of income to ensure you can afford to make the repayments.
To apply for car finance through Quick Car Finance, you start by just needing to provide a few details before we get back to you and recommend your ideal lender - that’s when we tell you the specific documents that they require.
What Is Your Dream Car?
Whether you prefer to finance a new or used vehicle, we can offer you access to our customer portal or to many dealerships across the UK. Our customer portal is home to over 150,000 cars waiting for you to pick!
If you prefer to choose your own dealership rather than go entirely through us, we can still help you choose the best quality vehicle at the lowest price for your needs.
Is It Worth It?
As a credit broker, Quick Car Finance ensures a smooth process for you in financing a car without any arrangement fee. We make our money from the lender and so you do not pay for our services
Get in touch with us now to buy your ideal car and you’ll soon be driving home on cloud nine!