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Pre-application Support

Guaranteed car finance explained

The most important thing to be aware of is nobody can offer guaranteed car finance – so if you see the words ‘guaranteed finance’ then it’s a good enough reason to be cautious.

The reason nobody can guarantee your car finance application will be successful is because every finance company, whether that be a direct lender, or a broker like Zuto, has to take your details, usually in the form of an online application, which is then used to perform a credit check to help them understand your credit worthiness and the likelihood of you repaying the finance. It’s only at that point, if you are accepted, you can be guaranteed car finance.

Can Zuto offer guaranteed car finance?

We’re not able to guarantee finance for any of our customers. Every customer is different, and their application is reviewed based on an individual’s personal circumstances, with a decision being made using various criteria, such as credit score and the amount you want to borrow. Because Zuto are a broker, we work closely with a large panel of lenders to try and get you the best car finance offer based on your personal circumstances.

I have bad credit and need guaranteed car finance – can you help?

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 bad credit and will always try our best to get you a deal that works for you. If you have bad credit, one advantage of applying with Zuto is your credit score isn’t impacted upon application. This means we’re able to tell you if you’ve been pre- approved for finance or not, without your credit score being impacted. If you’re pre-approved, and are happy with the offer, at that point a hard search will be done and your credit score will be impacted – don’t worry though, we will always get your full consent before this happens.

How does ‘Guaranteed Car Finance’ differ from a pre-approval or guaranteed rates?

As already mentioned, whilst car finance can never be guaranteed by a lender or provider, there are certain phrases which you might see during your application which look similar but mean different things.

‘Pre-approved’ – A pre-approved application is where an application has been submitted to a lender & they have approved the loan based on the information provided by the Customer.
‘Guaranteed or ‘real’ rates’ – If you see an APR accompanied by the words ‘real’ or ‘Guaranteed’ then this rate is a more transparent and accurate rate compared to the commonly known representative APR. A real-rate or ‘Guaranteed rate’ is given by a lender upon receipt of your application. If your eligibility meets certain criteria then a lender may be able to return a ‘guaranteed’ or ‘real’ rate as part of your application. For this scenario, the rate you see will be the rate you get, provided your details do not change to that submitted in the original application.

Written by

Mike Barlow

Content Manager

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.

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