Ironically the only way to get a credit rating is to borrow. You may never have needed to do so and have always paid your way. You may never have wanted a credit card because you were happy to pay cash for everything. If you couldn’t afford it you didn’t buy it.
Check our deals out on this Honda
Image attributed to Wikimedia Rennett Stowe
There are some things that perhaps are a little expensive to buy outright; one is property and the second a car. Your need for a car may come about because of employment, the need to travel to work and a less than satisfactory public transport system.
No worries
You may be a little apprehensive about making an approach for car finance but there is absolutely no reason for you to worry. The headline news about stricter lending criteria in general will not apply to you as long as you can show that your monthly income can cover the repayments as well as your existing bills.
It is affordability that is the main basis of approval. You may have no credit rating because you have never borrowed before. Other applicants may have a poor credit history. You will all be treated the same in terms of approval as long as you can make a financial affordability case.
You can find lenders in the High Street, but frankly you are likely to find the best online by going to Google or Yahoo, and entering something like ‘car finance’ or ‘ check our deals out’ which is perhaps a more casual phrase that gets straight to the point.
You will get a list of alternatives to investigate further. The company that you should select is one that stresses its desire to approve an application. You should be able to do it online and get a response in minutes. You need to be prepared with the information they need about you and your financial affairs and you might get a ‘yes’ in minutes.
Realistic
It is a matter of being realistic. If you use an interactive calculator you will be able to see the monthly repayments on a specific amount over a range of months. The other variable is the APR but websites are likely to highlight those on the main website pages.
You can do most of your research before actually making contact, but once you do, a good company will give you the chance of talking to someone that can answer all your questions.
Make your choice
Once approved, you can then go about finding a car. If you have done the preapproval exercise before approaching a dealership, you will be effectively going as a cash buyer. That gives you power in a market that has been relatively depressed in recent years.
Why not try to drive a hard bargain? You may find salesmen all too willing to ensure you buy before you walk out but make sure it is on your terms not theirs. You will actually be able to pick your choice up in days if it is available because the dealer will receive the money as soon as you inform the lender.
