Who Can Get A Car On Finance?

There is a lot of information about car finance out there, but one thing that is hard to find is detailed information on who can actually get a car on finance.

There is a lot of information about car finance out there, but one thing that is hard to find is detailed information on who can actually get a car on finance. This, of course, is actually really useful knowledge to have if you are looking to upgrade your car to something brand new.

Knowing whether you are able to get finance for your car allows you to make a more educated decision on whether or not you get a new car or go for a used one instead.

To help with that, we are going to look at the key factors in determining who can get a car on finance.

Car Finance Requirements

The first thing we need to look at is the requirements for getting a car on finance. After all, if you can’t meet the basic requirements, then the question of whether you can actually get a car on finance is already answered.

For starters, you will need to have a deposit saved up as cash before you can even apply for finance. That is typically equivalent to 3 monthly payments, and therefore, can be quite a high price to pay up front. However, the finance company uses this to ensure that you can actually afford the finance deal.

Once you have the deposit, you then have to get a credit score check by the finance company. This, again, is so that the finance company can determine whether you are a safe person to give that finance too. In other words, you need to ensure that your credit history is at least “good”.

Having a bad credit report will make it significantly more difficult to get approved for any of the different types of finance options. This is because most of the finance companies will not want to risk giving you such a large amount of money without a guarantor to secure that against.

So, in short, you need to meet the following criteria;

• You must have a deposit that is typically equal to 3 months of repayments.

• You must have at least a good credit rating.

If you are able to meet both of those requirements, then you are likely able to get a car on finance. With that said, there are two specific types of car finance options available that you should consider.

Car Finance Options

Once you are ready to apply for car finance, you will be faced with an important decision; which of the two most prominent finance options will you choose? We have covered these in detail in previous articles like this one, but here’s a brief summary.

• Hire Purchase

• With a Hire Purchase finance deal, you pay each month to cover the full cost of the vehicle, allowing you to own it at the end of the finance term.

• Car Lease

• When taking up a car lease, you only cover the value lost on a vehicle by driving it, meaning that it is a significantly cheaper option. However, you don’t get to keep the car at the end of the lease period and will need to upgrade, similar to a phone contract.

We list both brand new hire purchase cars and lease cars for you to browse through, so if you have made the decision to get a new car on finance, when not take a look here to see what you can find.