How Does Car Finance Work?
There are a few basic steps to car finance and you should pick the finance option that best suits your needs.The most common finance types for cars are either Hire Purchase, Lease Purchase or Personal Contract Purchase, but there are many more finance products out there in the market. Through our contacts with highly competitive insurance companies, we can put you in touch with someone you can discuss the best options available to you. Pick where to find the finance product. Either through dealers, banks or online comparison tools, you can get an overall view of the repayments and interest rates you might incur. There are many lenders which will compare hundreds of finance deals to find you the lowest possible rates.
The process through your car finance application.
The process is simple and will require a bit of information about you. You will need to complete a finance application form either online or over the telephone. Once the process has been carried out you normally get a decision in within a short time. Once your finance has been approved, your advisor will collaborate with the selected dealership and the funds will be transferred in time for the collection of your new vehicle.
What Are The Different Types of Car Finace?
The most notable car finance solutions are:
Hire Purchase (HP) You will need an initial deposit; you agree to return the vehicle price in monthly instalments at a certain rate of interest, usually over 1-5 years. At the end of the HP agreement, you own the vehicle.
Personal Contract Purchase (PCP) Your monthly payments are likely to be lower; when the agreement ends, usually after between 1-4 years, you can choose if you would rather hand the car back, make a final payment and take full ownership of it or part-exchange the vehicle for another.
Lease Purchase (LP) Also known as balloon payment finance, you will pay an initial deposit. It works similarly to PCP, however, there is no return option at the end of the agreement, so you will have to pay a deferred balloon element. Personal loan: you won’t need a deposit. You take ownership of the vehicle from the outset, your repayments can span from 1 to 5 years.
How long does it take to get finance approved?
Typically it can take one to two business days to check the documents and financial information you provided before coming back to you with a decision regarding your application for car finance. If your application outcome is a rejection, an acceptance with conditions or a request for further information, then the process of getting approved for car finance will take longer.
What Checks are done for car finance?
You will need to supply personal information such as proof of identity, a valid driver’s licence, proof of address, bank details, employment history. You can then expect a credit check and a financial assessment. If you are looking for help with obtaining finace for a new Classic or Modern Jaguar then why note give us a call or drop us a line. We would be happy to put you in touch with some of the best professionals in the industry, that will work with you to find you the best possible finance deals to suit your needs.
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