Instant car finance
For many drivers, buying a car is cause for excitement, so we believe the car finance application process should be simple and transparent. In this article, we’ve explained how we give you a decision quickly, so you can drive away with your new car in no time.
What is instant car finance?
Instant car finance refers to a quick decision made about whether you are eligible or not for a car loan, based on certain criteria such as your credit score, current financial circumstances and income, and payment history. You will receive a decision almost immediately, meaning you can start to plan your next steps straight away.
Can I get an instant decision on a car finance application?
It’s important to acknowledge that no reputable lender will offer absolutely ‘instant car finance’, because each application is considered on a case-by-case basis to find the most suitable offers for your car and loan-type of choice.
That’s not to say you can’t get a speedy decision, however! At Zuto, the car finance application process only takes a couple of minutes to complete (more on this below), you could get a decision within 60 seconds and it doesn’t impact your credit score by applying.
Once you’re happy to progress, we’ll conduct a full credit search to confirm your eligibility. Our team are always on hand to discuss any questions you might have about the pre-application process, so don’t hesitate to get in touch.
How does applying for car finance work?
Applying for car finance couldn’t be simpler with Zuto. To help us find the right finance option for you, you’ll need to provide a few simple details such as:
- Monthly income after tax
- Employment status and job title
- Your address(es) over the last three years (and your living status)
- Some personal information
- Whether you have a full UK driving license and valid UK passport
- How much you hope to borrow (don’t worry if you’re not sure yet)
We’ll analyse this information and perform a soft credit search (don’t worry, this doesn’t show up on your credit file!), before giving you an instant decision.
Choosing a finance arrangement
Once you’ve been approved for car finance we’ll give you a call to discuss your quotes and specific car criteria.
Driving away in your new car
After confirming your car finance agreement, the final step is to choose your car and complete all the required paperwork. Then you’re good to drive away!
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.
Types of quick-decision car finance
Now you have an idea of how the application process works, it’s time to check out the most popular car finance types. We’ve outlined the key points to be aware of, and why you might choose one over the other.
Hire purchase (HP)
Hire purchase car finance is a loan for the full value of a vehicle, plus any interest, payable in monthly instalments over an agreed period of time. Because you’re covering the entire cost of the car, it’s yours at the end of your agreement, which also means there are no mileage restrictions written into the terms.
Personal contract purchase (PCP)
Personal contract purchase car finance is a loan covering the depreciation on a vehicle, plus any interest, for the duration of an agreed period. After this period has ended, you can either return the car to the dealer or pay a balloon payment for the remaining value. This gives you the flexibility to choose between getting a new car or sticking with your existing vehicle, which is handy if you’re someone who likes to upgrade every few years.
Quick finance with bad credit
At Zuto, we believe car finance should be an accessible form of payment, even if you have a bad credit history. This is why we consider all applications on an individual basis, taking numerous factors into account – not just your credit score.
All you have to do is complete our online application form, and even if you’re looking for car finance with bad credit we’ll get back to you with a car finance decision potentially within 60 seconds to let you know if you’re approved.
If you have any concerns or questions about whether car finance is right for your circumstances, our team are always on hand to offer guidance. Alternatively, check out even more help and advice around applying for instant car finance with Zuto.
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.