Guaranteed car finance explained

When it comes to car finance, it’s important to be aware that nobody can guarantee you’ll be accepted for a HP finance, PCP car loan, or personal loan. If you see the words ‘guaranteed finance’, approach with caution.

The ‘guaranteed finance’ myth

There is no answer to ‘how to get guaranteed car finance?’, because lenders and brokers need to take your details, usually in the form of an online application, to perform a credit check. This is to help them understand your credit worthiness and the likelihood of you repaying the finance. Only at the point of being accepted is car finance guaranteed.

Can Zuto offer guaranteed car finance?

Just like all other credit brokers, we’re unable to guarantee finance for any of our customers. This is because every customer is different, and your application is reviewed based on individual personal circumstances, with a decision made using various criteria such as credit score and the amount you want to borrow.

However, we do work closely with a large panel of lenders, to try and get you the best car finance offer based on your personal circumstances.

Zuto is a credit broker, not a lender. Our rates start from 7.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £7,000 over 48 months with a representative APR of 19.3%, the amount payable would be £205 a month, with a total cost of credit of £2,831 and a total amount payable of £9,831.

I have bad credit and need car finance

Although we can’t guarantee an approval, we do help thousands of customers with bad credit get car finance. We work with lenders who specialise in issuing credit for people who are unemployed, on benefits, or without a guarantor, so will always try our best to get a deal that works for you.

If you have bad credit, one advantage of applying with Zuto is we’re able to tell you if you’ve been approved without your credit score being impacted. If you are approved and happy with the offer, a hard credit search will be done which will impact your credit score – don’t worry though; we always get your full consent before this happens.

How does guaranteed car finance differ from a ‘pre-approval’ or ‘guaranteed rates’?

As already mentioned, lenders cannot offer guaranteed car finance. But there are other similar phrases you might see during your application that mean different things.

What is pre-approved car finance?

Pre-approved refers to a loan application that has been approved by a lender based on the information provided by the customer.

What are guaranteed/real rates?

‘Real’ or ‘guaranteed’ APR is a more transparent and accurate rate than the commonly known representative APR.

A ‘real’ or ‘guaranteed rate’ is given by a lender upon receipt of your application, if your eligibility meets certain criteria. For this scenario, the rate you see will be the rate you get, provided your details do not change.

Guaranteed finance is impossible to offer, for various reasons, including necessary credit checks. However, get in touch with our team to discuss your circumstances, or explore our range of available finance options.

Ryan has worked at Zuto for a number of years and uses his experience within the industry to help customers understand the ins and outs of car finance.