Our borrowers think the same. At the end of this post, you are also going to find yourself of the same opinion. You just need to finish reading it all.
In the UK, guaranteed car finance is easier than you think. It does include in itself a variety of car loans. Is it that few of these loans are affordable and the others are not? Well, getting the right car loan in low rates is not about which product you are searching for but about how you are searching for it. We can discuss more about this below.
What Are Car Loans in the UK?
A car loan is a secured loan product quite similar to a mortgage. It means you are taking out a loan from a lender keeping your asset as collateral. For a mortgage, you take out a loan using your home as collateral. For a car loan, you borrow money using your car as collateral.
If you are not able to repay the loan in time, then your lender might take hold of the collateral, in this case, the car. Repaying the pending amount can help you get back your car though. You do not have to worry with that.
However, a car loan is typically a loan made for helping you own a car. You can use this loan to bring home your favourite vehicle. Whether it is a fuel-run car, an electric car or a hybrid, a car loan can effectively help you own it. That makes it a very useful financial product.
Keep in mind that car loans might come out as unique products without collateral needs with a few lenders. But that means it is going to come with compromises.
Why Are Car Loans Useful to Own a Car?
Car loans in the UK fall under the large category of the UK car finance. We, however, are speaking of a car loan here because this option can be the fastest funding solution for you to buy your car. We need to look at the points mentioned below to learn more about this:
- They Are Guaranteed
If you supply the right data for borrowing a car loan, then it mean you are going to get the loan for sure. This is why you can call car loans from direct lenders such as us a 99% guaranteed car finance solution.
Be it the car you want and when you want it, a car loan might as well help you out to bring it home just as you pictured it. If there’s a limited period offer, then you don’t risk losing your car. Get the car you want by borrowing the loan we give you. It’s that simple.
- They Are Instant
When you have found the right car loan provider, which is a direct lender such as us, you can tell your car dealer that the money comes in a day. However, if you want to supply paperwork even sooner than that, then you can use the loan approval documents. We send that to you in a few minutes.
Once you have shared your income details, credit score and collateral information (the car) to buy a car, we can send you your loan approval within 15 minutes. Using that information, you can have a negotiation with your dealer and book your vehicle.
- They Are Online
Of course, a few benefits about car loans should meet appreciation. These days, you don’t have to get all that paperwork to the lender’s office. You do not have to wait in those long and painful queues.
All you need to do is to send this information online. It will surely help you to get a loan in a completely paperless way.
Loans of this sort are not only fast or online, but they do come with a variety of benefits. We cannot tell you all in this post for the shortage of space. Besides, we have to tell you something more about these products.
Why Car Loans Are Not as Expensive (and Therefore Scary) as You Think
Take a look at the points mentioned below. You might find out a few very logical reasons (if not arguments) to define a car loan as a pocket-friendly solution. You can then discover all by yourself that you have been thinking wrong…a little.
- Car Loans Are Secured Loans
And that means they are not going to come in a staggeringly high interest rates. Yes, it might be a belief from days old that car loans are costly. Or you might think of it as an extremely difficult financial product.
However, you are securing the loan by collateral. When that happens, lending terms will reduce its interest rates to the ‘very low’ segment, which gives you opportunities to save money.
- Car Loans Can Be Repaid Flexibly
Is it true that there’s only one rate and one way to repay a car loan? Essentially, you might have heard a flawed statement then.
We are a direct lender organisation. Look closely at our policies and you can see that we offer one car loan (at any amount you want) with more than one repayment packages. If you use a loan calculator, then you can get to learn which term gives you chances to save. Use that package and save money.
- Car Loans from Us in Bad Credit Are Possible
To tell you the truth, they are as easy and as common as a personal loan. We in fact offer extremely bad credit loans in the UK online if you need it. Your bad credit score is not a problem to us as long as we find out how much you earn, how much money you take according to that earning and how you wish to repay us.
We keep the credit score check as a formal procedure. You can expect a soft credit check instead of a hard credit check from us. We can understand your loan affordability and financial behaviour at the moment, which helps us recommend more products to you.
To Conclude
Need more help? We and our team of professionals are always here to help you out. Just inform us how much money you need for your car, and we will help you in the best ways possible.
Anna Johnson has more than 11 years of experience in direct lending industry of the UK. She is the Senior Content Editor at 24cashflow where she is leading a large team of loan experts. During her career, she has helped the loan aspirants to use the particular loans in the best way and improve their financial lives and status.
Anna Johnson is known for her in-depth research of the UK loan marketplace, as she has worked with many major lending firms in her career. During her educational phase, she has done a research on ‘Finance Fundamentals for Growing Business’.