Being young driver isn’t great, not only do you have to spend a fortune on your car insurance. (The average car insurance quote for a 18 year old man is £900 per year!) but getting a loan to buy your first car can also be very difficult.
What are your finance options?
The main problem for new drivers is that you generally wont have much of a credit history as you’ve probably not taken out any loans or credit cards until this point. This means that lenders and banks have little credit information to go off when deciding if you are a “safe bet” when it comes to lending you money to buy a car.
Loans – No credit history Vs bad credit history
Lucky for you banks and lenders do treat you differently to those who have bad credit. While as a new driver and have little credit history you are still a higher risk you wont have to pay the same level of interest as someone who needs a car loan with a bad credit history. Lenders generally give you the benefit of the doubt and as new customers they also want you business in the hope you will get a car loan from them in the future!
Get a guarantor
One of the best options for you is to ask your mum, dad or friend to become a guarantor for your new car loan. This means they will be partly responsible for the loan if you were to default in the future. However, once you have demonstrated you can repay your loan within the terms and conditions, next time you would have build up a “credit history” and shoudn’t have any problems getting a car loan in the future on your own without the need for a guarantor. Not only that but you’ll find the rates of interest payable will be lower as you are less of a risk to the bank or lender.
What to do next?
If you are a young driver a new a car loan please speak with us as we have a huge network of lenders that are willing to lend to those with little credit history, either on a guarantored basis or not. Give us a call, what have you got to lose?
Most people nowadays require a car or some type of vechicle to get about and drive to work. Therefore not being able to get a loan to buy a car due to past financial problems can be a real worry to many people. Getting the right car loan quickly when you need it most is what counts.
Car Loan – Dont have a perfect credit history?
If you are one of the tens of thousands of people who need a car loan and who dont have a perfect credit history then there is hope. There are now more about more car finance lenders coming on the market who offer car loans to people with bad credit, or no credit at all. This includes people who have previously missed loan payment, who may have past CCJ’s or may be a discharged bankrupt. Most lenders now understand that there are many people with these types of credit files, but for whom have now soted out their finances and are back on track.
Our car loans partner: David Allan at Lending Expert say’s “We have almost 10 main stream lenders who are willing to borrow on an adverse credit basis. While these “bad credit loans” are more expensive and come with higher rates of interest, they do offer a lifeline to those who need a loan badly in order to get a car, and to get themselves back on track”. Lendingexpert.co.uk offer a huge loans and finance comparison service and we work with them to place some of our loan and finance customers who are out of our reach. You can visit their homepage here to search loans and find suitable car lenders.
Each car and vechicle lender is different
Each loan provider and lender has their own rules and retrictions, however if you find you have some CCJ’s or defaults on your credit file then you will find that there are many lenders who are willing to offer loans with this kind of credit history. Often young drivers who need a car loan can get one with the help of a guarantor. Guarantor loans have become very popular lately for low credit score applicants as it has made it easier for them to get a loan they would have otherwise have been refused for in the past.
Car loans are important – transport is essential!
Car loans are often treated differently than other personal loans. Lenders understand that often the borrower will need a car to get them to work and loans to buy a car are often less of a risk and repayments are made and defaults of these types of loans are less when compared with other generic loans that are used for other purposes.
How can I find out of I can get a car loan?
If you have bad credit on your file and now wish to buy a new car then please give the office a call. We’ll do a soft credit search and compare the lenders who can offer you a loan. This should take no longer than 1 hour and we’ll then be able to discuss what options are available to you. Even if you require a bike loan, or van loan we can help and it will be the same team who deals with your application.