Paying For Your Car - Alternatives to Dealership Finance
Have you visited a dealership to buy a car and been told that they can’t offer you finance anymore? You’re probably not alone. From April 1st there have been changes to the licences dealerships need to be able to offer finance, so you might find that your chosen dealership can’t finance your car anymore. This could be really frustrating and disappointing for a lot of people, so we’re here to give you some information about why this is, and also about alternatives to dealership finance and how to pay for your car. Watch the video to find out more, or read on below for advice from our expert team.
Changes to dealership car finance
Before April 1st, any company involved in lending money of any kind (not just vehicle finance) was governed by the Office of Fair Trading. This has changed now, and they’re under the FCA who’ve bought in new rules and changes to the licences companies need.
In the long term, this is a good thing because the FCA are putting in place a lot more rules and guidelines to make sure that everyone involved in lending treats customers fairly, and also that information is clear and accurate and not misleading. This should make it easier for you to work out how much a loan will cost you in total and whether you can afford it.
Other ways to finance your car
While dealership finance has traditionally been a common way to pay for a used car, there are other methods of getting car finance which are often easier. At Car Loan 4U we can approve you for finance before you go and buy your car, so you can visit the dealerships knowing that you have the means to pay for the car and what your budget is.
This upfront method also gives you more control and more chance of acceptance. A dealership generally just works with one lender (for example Barclays), and their criteria for accepting customers could be quite strict. Car Loan 4U work with 15 lenders, and when you first apply we will look at your circumstances and try to match you with one, which increases your chances of getting a loan.
As with any loan or finance product, the best thing you can do is to look around at all your options to compare rates and services. Loans are available from banks and brokers, but some companies will only lend to people with excellent credit ratings. You also need to look at the customer service and reputation of a company, if this is important to you.
Rest assured though, there are many alternatives to dealership finance which will always be worth exploring.