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