When it comes to getting approved for used car financing, many car buyers are not prepared for what they must have in order to get the approval they are hoping for. With some “buy here, pay here” dealers, car buyers can be approved for financing even if they have bad credit or no credit at all. But to make the application process even easier and faster, there are some steps car buyers can take to get ready.

In some cases, just knowing what to bring with you during the application process and having it ready can help you get approved in as little as an hour. Here are some tips that will help you cover your bases and get you approved for used car financing faster.

Keep your driving license with you. By having your driver’s license with you when you go to apply, the seller can easily verify that you are who you say you are.

Bring your most recent pay stub or proof of income. Most “buy here, pay here” dealers need to see proof that you’re making a steady income so they know you’ll be able to keep up with your payments.
Have a cash down payment and/or trade title ready. Almost every used car sold will require some sort of down payment, so having the proper amount ready before you go out to buy your car will make the process much easier.

Bring a recent phone or utility bill. Having a recent bill lets the seller know that you actually live where you claim to live, which is important when applying for auto financing.
Proof of bank account. If you have a bank account, bringing proof of that bank account will help the process go faster.

Have 12 references ready. Even if you have bad credit or no credit at all, 12 references from friends and family can serve as a character check of sorts in place of a credit check.
Overall, these are just a few steps you can take to help the used car financing process go more smoothly and efficiently. Remember: The more prepared you are, the faster it will go.

Reasons to Use Car Finance

The first question all shoppers should ask themselves before investing too much time looking for a new car is, “How will I pay for this car?”

Generally speaking, one of the best ways to buy a new motor vehicle is to save money and pay for it in cash. This means that the car is completely yours and you have no further cost to pay for the car, which can sometimes be the best option if you have the money available.

However, sometimes using car finance can also be a good option. It may be better to buy a motor vehicle and pay 100% upfront because it allows you to spread the cost of the car over a few months. Whether car finance is for you depends on your circumstances and your preferences. There are many places from where you can get finance such as a dealer, bank, leasing company, or online. Whatever your choice when it comes to buying a car, here are four reasons why car finance could be for you.

1. Depending on your preferences, car finance may suit you better. If you are only likely to keep the car for 3 – 4 years, then car leasing can be a good option as it is often much cheaper than other forms of car finance (especially for cars that tend to depreciate slowly). -depreciate slowly BMWs, VWs, Audis, Minis, etc) and at the end of 3 or 4 years you just hand the car back and get a new one. That is, you do not have to worry about selling the car or replacing its parts.

2. You can very often get a great deal – If you went out looking for a car 10 years ago, chances are you’d have paid off using one of the dealership’s car finance packages, so You might have got a better deal for the cash. Many dealers will reduce the price of the car by availing of the finance package.

3. It means you can get the car you want – When you have a limited amount of money set aside to buy a car, it means you can only buy a car worth that much. If you make a car finance deal, however, you immediately open up a new market, because you can limit what you buy based on how much you can afford each month – a figure that will often be more than equal to spreading that money. Which you saved in the same number of months.

4. It allows you to buy a car when you need it – One of the major advantages of using car finance packages is that they allow you to save money and get a car when you need it, rather than needing to buy one Let’s give Car when you can afford it, something that is often appreciated when your old car breaks down and needs to be replaced immediately.

Points to Keep in Mind When Choosing Used Car Finance

There are a number of factors a person should consider while taking used car finance. These will vary depending on where you choose to buy your used car. If buying from a showroom there are factors you need to be aware of which are different from those when buying privately.

If you are ignorant of the options and different types of finance available, chances are you will end up paying more than the odds are for your car. If buying from a dealership, you will be offered finance there and then. While this may seem like the easiest way to borrow, it can also be the most expensive. The dealership may offer you a new car loan and this is not the best option when buying a used car. Taking out specific finances can save money. Taking out a loan from a dealership too often means you’ll end up paying a higher interest rate than you need to.

If you’re buying your used car privately, of course, you’ll need to take care of finding your own loan. The easiest way to get finance is by going online with a specialist car loan broker and allowing them to do the research on your behalf. This means that you are able to compare interest rates to ensure that you get the cheapest possible rate for your circumstances in the shortest amount of time.

While taking out this type of finance the terms and conditions differ as to whether you will be accepted for the loan or not. However, by going with an expert they are able to explain what is needed to be able to qualify.

One of the biggest factors that a lender will take into account while applying for finance is your credit rating. The lender will be reluctant to give a loan to anyone who has had problems with credit in the past. If you get a loan with a less-than-perfect credit rating, you may have to pay more in interest. Usually, people with bad credit are asked to put up something as collateral against the money they are borrowing. However, due to the depreciating value of a car, a lender will not charge it against the loan.

An expert website will always be able to get you a good deal on car finance. Along with this, they will also give you the terms and conditions of the loan which you must read thoroughly before buying. This is where you can find all the terms and conditions of the loan and any additional costs. The amount of interest that will accrue on the loan can be found here; the full amount you will pay; and monthly repayments.

In short, you can get a lower interest rate for your used car if you go online. If you go with an expert they are often able to reach lenders that individuals cannot and in the least amount of time. All one has to do is read the terms and conditions that come with the quotes given by a provider to ensure that the loan is suitable.

Tips to Get The Best Used Car Finance Deal

It really pays to shop online with a specialist motoring website while getting the best-used car finance deal. You can allow them to get the best deal on your behalf. An expert will be able to find lenders you can’t reach and will be able to shop within the car loan marketplace and collect quotes.

When changing your vehicle, an older car will often suffice. However, even when buying second-hand, you may not have the cash to pay for it and you may need to find the best-used car finance deal. If you find a used vehicle right at a used car dealership, it is likely that the dealership will try to force you to take out finance from them. It is important to understand that the actual dealership is not going to finance you.

They will go with someone they use regularly to get the loan on your behalf. Nine times out of ten it will not be the cheapest interest rate and you will save money in most cases by going with an expert and getting the loan yourself.

If you are considering buying your old vehicle from a dealership, first avail of the loan and visit the dealership with cash in your pocket. Doing so allows you to use the cash as a bargaining tool to take some of the fall off the sale of the car, as well as take advantage of the savings on the interest rate.

A specialist website will search for the best-used car finance deal with some of the UK’s top lenders on your behalf and then present you with a quote along with key loan facts. This means that you can compare them at your leisure to find the cheapest and most suitable one for your needs. You need to have an excellent credit rating to get the best interest rate and of course, you need to know what you want from the loan before you go to an expert.

If you need to keep the monthly payments low, you will need to spread the cost of the vehicle finance deal over a longer period. However, keep in mind that the longer you take the loan, the more you will have to pay in interest. Also, remember that a vehicle depreciates and a used car even more so.

Once an expert has found the cheapest used car finance quotes for you, make sure to read the important facts that should be provided along with the loan, it will tell you several important facts about the loan. It should state what the APR of the loan is. It will also tell you how much interest will be added to the cost of what you are borrowing and for how long you will have to pay it back.
Some loans come with charges, an early repayment fee is one and you may have to pay in a lump sum if you are able to repay the loan before the specified time. Of course, this is a way to get more money out of you, so it’s worth checking the loan terms thoroughly with others.

How to Find Used Car Finance Options

There are a number of factors that need to be kept in mind while considering used car finance options. One of the biggest decisions you will have to make is setting a budget for the car. It is essential to be able to afford and repay any type of finance. If you go online before taking any decision related to money, you can get some good advice. A specialist website will provide you with all the information you need to help you get the best deal and they can find you a loan much quicker than a person could search for it themselves.

An expert knows where to look when getting the cheapest interest rate on your loan. They will be able to take loans as per their individual circumstances of the individual. In most cases an expert will know where to go for a loan, but if not they are able to search the entire market.

The actual rate of interest offered by the lender will vary greatly. While offering used car finance, all lenders will take a look at your credit rating and then base the loan on it. If your credit rating is excellent then the rate of interest offered to you will be quite competitive. However, you can expect to pay a higher interest rate if you have a poor credit rating. Under certain circumstances, you may have to take bad credit car loans and then the cheapest way is to take the help of an expert.

As we said earlier, the first thing you need to do while buying a used car decides your budget for used car finance. It is equally important to stick with this budget and not be tempted to go overboard. You must remember that the loan will have to be repaid as long as you meet the terms, even if your current circumstances change.

You should seek advice and use the tools found on a motoring specialist’s website to find out how much a used car of the same make and model is going for. This will ensure that you do not pay more than the odds for the car and hence do not end up borrowing more than is necessary.

Once you’ve determined how much you need to borrow and what car finance options are available, you need to figure out how long to take out the loan. You should always take a loan on the shortest terms possible. By doing this you are reducing the amount of interest you pay. Even if the interest rate is exceptionally low, it adds up to the total cost. Once an expert has found the best deal for your circumstances, make sure you read the terms and conditions attached to the loan. While an expert will find the cheapest, it is down to the individual to make sure they know how much they will be paying in full.