• How Easy is it to Get Car Finance: What are the Requirements

    If you are looking to purchase a new vehicle, you may be wondering how easy it is to get car finance. If you require a loan, there will be certain requirements the finance company has that you will need to fulfill before they will lend you the money.

    Making a Down Payment

    Most finance companies will require that you make a down payment of around ten percent towards the purchase of your car. This down payment shows them that you are serious about your purchase. It also protects the lender against the depreciation of the car. However, many companies may allow you to part exchange your own car instead of providing a down payment. It may be convenient to you to part exchange your old car to part fund the purchase of a new one. This means that you won’t have to go to the effort of arranging the sale of your old car. 

    Credit Reports

    Most lenders will ask you to grant them access to get your credit report for one or more credit bureaus. A credit bureau will give you a rating depending on your previous lending history and your current availability to credit. A lender may also ask you to complete a financial statement outlining your spending outgoings before deciding whether to grant you car finance. Each car finance company will have their own criteria for lending money. 

    Residence

    A car finance company will want to know that you have been resident at your address for at least two years. If you haven’t lived at your address for 2 years, they may request details of your previous address. They also may request to get in contact with your landlord or mortgage company to make sure you have been making payments on time. This shows them stability. 

    Job History

    Finally a car finance company will want to verify that you have the means to pay the rent and will ask for details of your current employment. If you have not been working for the same employer for more than 2 years, they will ask details of your job history and salary. If you meet the car finance company’s lending criteria, then they should grant you a loan.