Getting a car finance deal if you have poor credit history, CCJs or previous bankruptcies can seem daunting, so let Glenside Finance be your guide to the world of car finance.
1. Choose a finance type
There are 4 types of finance typically used to purchase cars: Lease, Personal Loan, Hire Purchase or Personal Contract Plan.
Hire Purchase (“HP”) is a popular type of credit agreement typically used to purchase cars. You agree to pay for the car over a period of time and you do not own the car until you make your final payment. Over 80% of our customers have used Hire Purchase to purchase their cars.
A deposit is generally required; we normally look for 20-30% of the purchase price of the car as a deposit.
Related: Pros and Cons of Hire Purchase
Personal Contract Plans (“PCPs”) are appealing because of the low monthly repayments and low deposit requirements. However, a large balloon payment is typically due at the end of the agreement and you may be penalised if there are mileage restrictions or if the car is kept in a poor condition. The total amount paid may also be more compared to a Hire Purchase agreement.
2. Apply online
Our car finance calculator gives you an indication of what your monthly repayments are likely to be along with the typical APR (which is based on the term of the agreement and your credit rating). Once you’re happy with your repayments you can then complete our easy online application form. This only takes a minute to complete!
In order to decide whether to offer you finance we take into account a number of factors, such as the amount you’re looking to borrow, your deposit and information gathered about you from Experian – a credit reference agency. You will then be contacted by one of our representatives to discuss the outcome of your application and your monthly budget. We will work with you to tailor your car finance package to suit your budget.
If you have bad credit you may find it harder to get car finance. We specialise in helping those with poor credit get car finance, even if you have CCJ’s, mortgage arrears or have been previously refused car finance. You will be dealing directly with us, the finance house (we are not a broker or third party agent) – so your application will be processed quickly.
Related: 5 Tips That Could Improve Your Credit Rating
3. Choose your vehicle
You can choose your vehicle from any reputable UK dealership or choose from our selection of cars available. We also have fantastic vehicle sourcing facilities available – one of our dedicated vehicle sales managers will work with you to find your dream car. When searching for a vehicle on third party websites be wary of any insurance write-offs (can be described as a “VCAR” or “Cat C/D”).
Once we have the details of your dream car we will then provide you with a quote detailing deposit requirements, monthly instalments and any administration fees. If you are happy with the quotation we can then send you the paperwork to sign.
The paperwork will be relevant to the finance type you have chosen (Hire Purchase or Lease). It will describe in detail all of your rights, the terms and conditions of the agreement and any fees or charges you will have to pay.
4. Drive away in your new car!
Once the signed finance documentation has been received along with any proofs requested we will release the funds to the dealer and you can drive away in your new car!
