Who is eligible for a car loan?
For drivers looking to invest in a new vehicle, deciding how to fund this purchase can be difficult. Financial restrictions imposed on consumers as a result of continued economic uncertainty has left many without the disposable income needed for such a purchase, making financial products such as car loans a great alternative.
These products allow motorists to buy a car on credit, giving them the vehicle they deserve without impairing their finances. Of course, in order to ascertain whether these products are your best option you need to look at what to consider before taking a car loan and establish whether you are eligible or not.
Who is eligible?
Eligibility for car loans will vary depending on the firm or lender but all drivers should be able to find a suitable offer for their situation. Whilst bad credit ratings may have been a limitation in the past, many lenders recognise the tough financial situations of their customers and this means they offer products to individuals with all types of financial background.
Of course, certain restrictions will still apply over age and employment but the diversity of modern finance products means there are plenty of credit options for those who may not meet traditional criteria. For consumers who are self employed, have been declared bankrupt in the past or had previous vehicles repossessed, car loans can still be obtained.
Loan providers and brokers are monitored and regulated by the Financial Services Authority (FSA) to ensure these products are fair and ethical, helping you find a credit option you can trust.
Applying for a loan
For those who want to know how to get a car loan, the majority of applications can now be handled online. This is far more convenient and accessible than traditional options and could be one of the reasons why car loans topped the list of ways to purchase a car in 2011.
In order to obtain a loan, the first thing you need to do is use a car finance calculator to determine how much money you are able to borrow. This can be done before you even begin your car search, allowing you to head to forecourts and garages with all of the necessary information at hand.
You needn’t worry about geographic location limiting the availability of loans either as, with guaranteed car finance UK, you will find loans offered across the entire length and breadth of the country.