Car Finance Loans

How to use a car finance loan...

A car is a growing necessity for our hectic lives, but the costs of purchasing one can seem daunting, if not impossible!

With a car loan, however, you could spread the costs over a period of years, meaning that you could actually afford a better car and incur less financial burden.

5 steps - from application form to new car

1. Application
   - These are simplest to fill out online. Check out the website for car loan company you wish to apply through and look for a link to the online application page
   - The pages on these websites will be security encrypted to prevent anyone (aside from the company you apply to) from viewing your personal details
   - You will usually be contacted within 24hrs of application with news of whether your request has been successful


2. Identification
   - If you pass this preliminary stage, you will be asked to provide documented proof of income, such as, pay slips and bank statements
   - You may also be required to provide proof of ID and address, including passport, driver's licence and utility bills.


3. Contract
   - You will be dispatched a contract laying out the terms of the agreement to sign and return


4. Receive money
   - When the lender is in receipt of your signed contract they will release the funds (this usually takes about 3 working days)


5. Buy car
   - Once the money has reached your account you can choose the car you want

Making the most of your loan:

Look to the future
As you will be paying for the car incrementally, you don't technically own it until you have fully repaid the outstanding amount, which gives you less flexibility should your circumstances change.

• Make sure you choose a company that provide you with a large enough selection of vehicles, should you wish to upgrade in the future.
• Remember that if you choose to sell the car privately you will still be required to repay the outstanding loan balance.

Things to watch out for:

Restrictions on the car you purchase
The lender you choose may impose any number of requirements on your purchase . . .

• The car must be under X number of miles
• The car must be no older than . . .
• You can only choose cars from such and such a dealership.

Make sure you are fully aware of all the terms of the agreement - especially if you have a particular car you want in mind - before you sign up to a lengthy contract.

Compare car finance loans