| There's plenty to consider when buying a new | | | | Because of their more lenient approach, |
| or used car without the anguish of fretting | | | | buying a car on credit from a car supermarket |
| over your credit status, and wondering | | | | tends to be the easier route to successful |
| whether your car loan will be approved. | | | | finance. That's because any vehicle bought |
| | | | from the dealer using their car finance will |
| Unfortunately, because of that fear of being | | | | be secured against the loan. The dealer is |
| rejected many people don't even bother to | | | | protected by way of a guarantee because they |
| apply for car finance. Perhaps due to what | | | | can recover the vehicle should you stop |
| they have read, or maybe because they were | | | | paying for it. That makes them more willing |
| mis-informed by well-meaning friends or | | | | to give those with a poor credit record a |
| family, many would-be car buyers dismiss the | | | | second chance, and the opportunity to prove |
| idea that they ever could get car finance. | | | | that borrowers can handle the financial |
| They think that past repayment problems and a | | | | responsibility of taking out a loan. |
| damaged credit record means they won't be | | | | |
| considered. They may even have been turned | | | | To apply for car finance most dealers only |
| down for a new account by credit card | | | | insist that applicants are over 21, have a |
| companies or high street banks so they | | | | valid driving licence and have been resident |
| believe that they will be unable to get | | | | in the UK for at least five years. And even |
| credit anywhere. | | | | on the rare occasions when there is a problem |
| | | | with an application all is not lost. It may |
| However, that assumption is deeply flawed. | | | | still be possible to progress the loan if a |
| Even if applicants for finance have missed | | | | guarantor can be found, probably a family |
| payments on past loans or even had CCJs | | | | member or close friend, to guarantee to pay |
| recorded against them, they could still be | | | | back the loan if the applicant defaults on |
| successful in getting finance for a car from | | | | payments. |
| many of the UK's major car supermarkets. They | | | | |
| tend to be a lot more sympathetic about past | | | | So, if you are agonising over whether or not |
| problems than high street banks, and | | | | you'll get car finance because of a poor past |
| therefore more willing to lend. | | | | credit record you may wish to reconsider and |
| | | | start to dream about your new dream motor. |