Learn the Requirements For Securing Car Finance
A car is definitely no longer a luxury it once was considered to be. Everybody sees it as a necessity already. Even those that are not making enough money with the low pay they get from their jobs are looking for ways of getting cars at the lowest possible rates. Fortunately, car financing in the UK is something difficult to get. Through this method, you can avail of the amount you will need for the car that you desire. Of course, there are requirements. These are what you need to comply before you can have the opportunity of driving a new car.
Generally, car financing companies require their clients to be 18 years old and above. That is a year after you come to the minimum age requirement for a driver’s license in the UK. However, they may give consideration if have not reached the said age. You just have to ask someone who can stand up as your guarantor. Ideally, they should be your parents but your relatives or more mature friends with stable income may do as well.
Tags: decisive proof, mature friends, proof of employment, repayment obligations, salary rateWhat is Sub Prime Motor Finance?
In these tough times it is becoming more and more difficult to obtain prime motor finance for people with a less than perfect credit history. A lot of the lenders have increased their scorecard and abandoned their rate for risk practices. This basically means that they have increased the credit score required to get credit approval. Before companies would advertise an attractive headline APR (annual percentage rate) but depending on your credit score they would decide if you would be offered that rate or a less attractive APR (annual percentage rate).
In the sub prime motor finance sector the credit crunch has had damaging effect on the market. As a result of which, several of the major players have ceased trading or no longer approving new business. This has impacted on the mortgage, personal loans, in fact all the sub prime finance markets. It is probably more important than ever to know what your credit rating is and what personal information the credit reference agencies are holding. Once you know this information you can start to address the situation.
Tags: annual percentage rate, attractive headline, county court judgments, credit crunch, credit reference agenciesThe 84 Month Car Loan – Pros and Cons For the Smart Buyer
As time goes on, the average length of American auto loans has steadily increased. Today, it’s not uncommon for lenders and automaker finance companies to offer car loans as long as 84 months…that’s a whopping 7 years of financing! Before entering into any loan agreement that spans such a length of time, you need to be doubly sure that you’re making the right decision for you and your financial future. Let’s look at the pros and cons of 7 year car loans.
84 Month Auto Loans: The Cons
Obviously, when you spread out your payments over a longer period of time, each payment itself becomes smaller. In this way, 7 year auto financing allows for lower per-monthly payments than a shorter loan. Unfortunately, most buyers are tempted to parlay these mathematics into buying a more expensive car than they otherwise would. or could But this begs the question: can you really afford a car this expensive?
Tags: auto loans, expensive car, loan pros, negative equity, smart buyer