How Does Car Finance Work?
There are a few basic steps to car finance, and you should choose the option that best suits your needs. The most common car finance types are Hire Purchase, Lease Purchase, and Personal Contract Purchase, but there are many more available in the market. Through our contacts with highly competitive insurance companies, we can connect you with someone to 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. Many lenders compare hundreds of finance deals to find you the lowest possible rates.
The process of your car finance application.
The process is simple and will require some information about you. You will need to complete a finance application form online or by telephone. Once the process is complete, you typically receive a decision within a short time. Once your financing is approved, your advisor will coordinate 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 finance?
The most notable car finance solutions are:
Hire Purchase (HP):You will need an initial deposit and agree to repay the vehicle price in monthly instalments at a specified interest rate, 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 1-4 years, you can choose to hand the car back, make a final payment and take full ownership, 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, and 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 review the documents and financial information you provided before we return a decision on your car finance application. 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 provide personal information, including proof of identity, a valid driver’s licence, proof of address, bank details, and employment history. You can then expect a credit check and a financial assessment. If you are looking for help obtaining financing for a new Classic or Modern Jaguar, why not 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 who will work with you to find the best possible financing deals to suit your needs.
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