Who can get car finance?

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Owning your own car can make your life more convenient and open out the world to you. But if you don’t have the money to make a large payment on a new car, you may be considering finance options. Car finance can be a great way to get the car you want, but who can get car finance? Read on as we explore further and see how you could use finance to access the cars for sale Essex-based drivers love.

How do you know if you are eligible?

Knowing whether or not you will be able to get car finance can be difficult. There is no blanket rule across all lenders or dealerships, and each has its own criteria for eligibility. There are some factors that are generally likely to impact your likelihood of being approved, however.

How old do you need to be?

There is a minimum age requirement when applying for a car on finance. You are required to be over eighteen years old, which means that brand new drivers who pass their test at seventeen will still need to wait a year to buy a car on finance. Some lenders are generally reluctant to approve younger drivers, as it is harder to have a solid credit history at this age. Even at eighteen, you may need to apply with the help of a guarantor.

In some cases, there is also an upper age limit, which can be frustrating for older drivers - however it is in place to ensure that the repayments are made before motorists reach a particular age. For example, some companies have an age limit of eighty years old, so if you are three years younger this is likely to be the repayment term.

Do you need to hold UK citizenship?

You do not need to hold UK citizenship in order to apply for the cars on finance UK-based dealerships offer. However, it is still important to have a UK credit history. This can include your personal bills such as rent and utilities.

Is employment important?

Some people believe that it is impossible to get a car on finance if you are not employed, or are not traditionally employed (for example, if you are self-employed or on a fixed-term or seasonal contract). The truth is that you do not need to be currently working for all dealerships to approve you, but you should be able to show some form of income. This can be a pension or similar benefits, or income gained as a sole trader.

How can those with bad credit get a car?

The good news is that bad credit does not eliminate you from being approved. A car loan is a secured loan, which means that if you do not make your repayments, the car can be claimed back in place of what you owe. So there are more flexible options available because dealerships and lenders have a way of settling unpaid debt.

With some caveats in mind, getting a car is not beyond your reach! If you want to further discuss your finance options, get in touch with Essex Car Company. We have a great range of used cars Essex-based drivers trust, so why not find out what we can offer?