subject: Guide To Car Finance In Manchester [print this page] According to the figures in the last quarter of 2011, more than 332,000 new cars hit the roads in the UK. If you are also an aspiring car owner, but with limited economic resources, you must know that you can still buy a new car by opting for car-finance.
Recent figures revealed by the Finance and Leasing Association (FLA) also spell out that the number of car loans taken by the UK customers in 2010 has increased as compared to 2009.
Availability of Car Finance
It could take a lot of efforts to prove your creditworthiness in order to get the loan. Due to some financial difficulties, getting a loan might seem to be out of reach. There are various ways to get the car-loan approved even if you are in bad economic conditions by fulfilling eligibility. Going forward, we would talk about it in detail.
Knowing About Car Finance
Fortunately, it is possible to fulfill your dream of buying a car even with limited financial resources, seeking help from car financing institutions. There you have an option of paying inexpensive monthly installments.
Before, going to the nearby dealer, selecting the car and making the purchase, it is important to take a 360 degree view of your credit score, compare the car financing rates and get your financing application pre-approved.
Credit score defines your creditworthiness. It is also significant to determine your interest rates and down payment. Credit Score works in accordance with the credit score range. For example, if your credit range is 330 and 549, then your credit score should be above 550, otherwise it would be difficult for you to get the loan. If you are below 549, you have to first increase your credit score by paying bills. Therefore, the higher credit score you have, the more chances will be there to get the car finance.
After getting credit score above the range, there is more homework to do. In order to get the best deal at the lowest possible cost, compare interest rates, down payment requirements and other fee structure, offered by different lending institutions.
Once the comparison of different rates is done, you have to get your financing application pre-approved. In this case, having a pre-approved application enables you to grab discounts and rebates when you negotiate with the car dealers.
How to Get Car Finance With Bad Credit?
For getting a car loan with bad credit, you need to go for front-loaded loans. This type of loan implies that you need to make initial payments at higher interest rates as compared to the interest rates in the final payments.
In addition to this, you also have an option to take the loan from individuals instead of bank as they are more sympathetic and can compromise on your credit score to some extent. But, of course they don't look forward to lose their money so you have to be sure of your financial conditions.
If you are with tight budget, the only way to buy your dream car is through car finance Manchester, Nottingham, Birmingham, Bradford offer you great options of getting car loans from various banking institutions. Even if you have bad credit, you have the possibility to get the car finance, where you have to pay off higher rates of interest than what you pay usually.
by: Julie Cheung
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