Your Car Finance Questions Answered

Do I Have to be in a Regular Job to get a Loan?

Assessments of applicants’ incomes are completed individually to determine whether they are eligible for the loan or not. Those who are self-employed or have a substantial amount of assets will be able to get loans as long as they give legitimate evidence to show that they are able to repay the loan at the permitted rate. On the other hand, if an individual is unemployed, they will still be able to apply for a loan and their eligibility would again be based on their income and assets. In this situation, it is likely that bank balances for the past 3 months would need to be provided. The interest rate will be higher if the risk of lending to the person is greater.

What Age do I Have to be to get a Loan?

To get a bank loan you must be aged 18 or over. Although, if you are young, you may not have been able to build up a good credit rating, which could be an obstacle to you getting the best interest rates. Anyone under the age of 21 requesting a loan may have to provide a guarantor. If anything were to go wrong with the repayments of the loan, the guarantors would then be responsible for making the payments. The upper age limit for loan applicants is dependent on the provider, but it is usually 79 years old.

How Long does a Loan Last?

A loan will typically last between 2 and 7 years, but this is dependent on the lender. It is recommended that you carefully consider the different options that various providers offer, making sure that you will be able to keep up with the costs you will have to endure over the time period.

I have been Declared Bankrupt in the Past - Can I still get a Loan?

As long as you have been discharged in the past 12 months, it is possible for you to be successful in gaining approval for a loan. There is however, a chance that you will be charged a higher interest rate because of your previous history of bankruptcy. You will be asked give evidence of your case and if the loan provider considers you to be a greater risk and is concerned about your ability to keep up with repayments, your interest will increase.

How Much am I Entitled to Borrow?

Lenders usually have a minimum limit of £1,000, and upper limits are dependent on the loan company. The proportion of a lender’s maximum amount that you are able to borrow will be based your ability to prove that you can pay it back.

Can I Reapply for a Loan if I Have Previously been Declined?

Yes, you can. As long as your previous circumstances have changed and have improved, then you may reapply. However, you could be charged a higher interest rate.

I am Struggling to Repay my Loan - What can I do?

Contact the lender straight away. Companies deal with these situations differently, and the best thing you can do is fully explain your situation to them as soon as possible. The company will then advise you on the best course of action. If you do not make the loan provider aware of your circumstances, you will be at risk of having your car taken away from you, or your personal assets being removed.

I have only just Moved to the UK - Can I still get a Car Loan?

There are very few lenders who will consider giving a loan to somebody that has lived in the UK for less than a year. If you find a company who will consider you, it is likely that they will charge higher interest rates.

How Long will it take to get a Loan?

As long as there are no problems, the entire process from applying to receiving the loan takes less than seven days. These specific offers are only valid for 28 days which is why it is important that you use this time to consider the terms and conditions and make sure that it’s something you definitely want to take on.

APR - What is it?

This stands for Annual Percentage Rate and shows how much the loan will really cost you. To get the best deal, you should scan the market and comparing deals, rather than just settling for the first you come across. Ensure you are looking at the full cost and not just the monthly repayments. The loans that are for a longer period of time usually have lower monthly cost, but you will end up paying more in the long run.