Guaranteed Car Finance, in our opinion is a term that is often used as a marketing tactic, but in reality does not exist in the way the consumer believes. Our experience in the Second Chance Car Finance market gives us the opinion that Guaranteed Car Finance when a customer has bad credit is misleading.
Since regulatory shake up in the UK, there has to be what is termed responsible lending and this basically means can the customer afford the repayments of the loan or finance. If a provider was offering Guaranteed Approval Car Finance then it would be impossible for them to be responsible.
We might not Guarantee Approval but we are confident our panel of lending options gives us a first rate ability to give our customers what they want.
Bad credit can often be the obstacle for many of our customers to securing the finance on the car of their choice. In recent times it has been proving much harder for applicants to find car finance approval as lenders have suffered greatly due to bad debts and also as a result of the global financial markets problems. For those customers who have experienced problems in meeting their obligations or suffered with redundancy or divorce then finding a finance company that would still consider lending to them has been very hard indeed. Credit issues can be seen as something as simple as missing a credit card payment or the other common factors are CCJ’s (county court judgements), default notices, bankruptcy, debt management plans and mortgage arrears.
Cars we are happy to be able to offer Bad Credit Car Finance solutions for each and every customer we deal with and so can still look to get customers approved even if they have been recently turned down or are struggling to fund their new car purchase or lease.There are many names for this market and companies often use words such as sub prime, non status and guaranteed car finance to promote such services.
The two main options in the Car Finance For Bad credit market are Hire Purchase and Non status Car Leasing. One of our consultants would normally be able to advise which is the best choice for you depending on the type of car you are looking at and the method that gives you the best value for money.
As a rule we can finance your new purchase from any UK dealership so can pay for the car of your choice even if you have already been turned down by the dealership its located at. Its best to check with one of our consultants first to make sure that the price is within what we would expect as this makes sure that your initial payment is kept to a minimum. Most lenders will also only allow vehicles that are upto 7 years in age as this will affect the age at the end of the contract too.
The great majority of the Bad Credit Car Finance companies we work with will use the information on your credit report to check you are who you say you are and your address history but wont make there decision to lend you money based entirely upon what they see. We require 2 months bank statements to show your income and copies of your passport and drivers licence for identification. Past problems wont cause you to be declined as they are looking to see that your current status allows the affordability of the monthly repayment. Some of the other lenders we operate alongside will simply carry out what is called a ‘soft’ credit search and this is to confirm your identity and they usually have a much more lenient approach also. It can usually mean that the rates they charge though are higher so your consultant will always look to offer you the very best payments for your profile.
With many dealerships working under a high pressure sales environment you will find that the salesmen are targeted on many areas including proposing customers through there own funders. It is often the case that they are not able to understand how the sub prime market operates and so usually excuse themselves at this point. The main stream garages often see a deal as lost when a customer is declined and prefer to move onto something else. At MSG Cars we work alongside many UK dealerships to offer them an additional company to approach when it comes to getting customers accepted and into the cars they are selling. If your dealer has said they cant help a quick two minute application form on this website is all that is required to get an instant decision.
Our lenders have now worked out that those applicants with a previous bankruptcy on file are much better candidates believe it or not! Its usually the case that All credit agreements have been cleared and so the customer is debt free and has a very high disposable income. This factor is taken into account when the application is scored and so we regularly see those with items such as Bankruptcy getting approved on the very best Non Prime rates for Bad Credit customers.
Mortgage arrears have become much more common in recent times and so we have seen more and more customers who have been carrying such difficulties. It might be the case that the arrears happened some time ago and they have been maintained or that a customer was made redundant and fell behind. The lenders we operate with will approve customers that have mortgage arrears that’s for sure but will take an overall view before saying yes as it will also depend on other items such as other debts and their traceability too.
A part exchange is no problem -even with Sub Prime car credit. As we can purchase from any dealer its as straight forward as it usually would be – if not more so! Your part exchange would be contributed to the agreement as the deposit or if it wasn’t sufficient as part of the deposit with the remainder being made up of cash. If your existing motor was worth much more than the minimum deposit you could also ask the salesman for some cash back too.
County court judgements are just another of the factors that fall under the Bad Credit bracket that the car finance houses we deal with come across every day. With each customer having what you could term a profile all that happens is that this profile is decreased for each item like the CCJ and providing the rest of the customers application looks fine then we are in business. Remember that if we couldn’t get our customers approved due to items such as CCJ’s then all we would end up with is a lot of unhappy people on the phone complaining at us which is the last thing we would want.
Its difficult to tell until we have a completed application for from you but this is an area that can sometimes cause problems. The UK electoral roll is an area that a lot of finance companies use when assessing an applicant as they like to see stability or traceable home record. If you have been living abroad it can also depend if you have kept a correspondence address in the UK or if you are a home owner too.
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.