When we consider different modes of transport, the car is considered to be the best one. Why? When you have your personal car, you don’t have to get an online taxi or face hassles of public transport and be punctual about the timings. You can get your car and go wherever you want to go. But with a bad credit UK delay can happen in getting an urgent vehicle.
But where to turn to for poor car credit fiance UK? What if your application has already been rejected somewhere else? What are your chances of qualifying for a car loan?
All these questions are enough to dishearten a person and crush its dream of getting a new car, but what we are going to tell you that there are actually ways with which you can get qualify for online car finance. You just need relevant information and search in the proper areas.
Although, many mainstream lenders limit their options related to car finance for bad credit, and if you do not have a decent score, they will immediately count you out. However, there are some specialists that accept car credit of any type and help you with getting a new vehicle. So even if you have a poor credit score history, there is still the possibility of getting approved for car finance.
Hire purchase is one of the most favourable choices for getting the acquisition of the car and is preferred both by private and business buyers. In this, a deposit of around 10% is submitted in the beginning as stated in the contract. And then affordable monthly instalments are decided that is made over a period of 2 to 4 years. At the end of the term, the customer is given the ownership of the vehicle.
The benefits of this type of finance option are:
1. You are given flexible and affordable monthly repayments.
2. At the end of the term contract, you will get the ownership of the car.
3. Free and protect yourself from credit checks from the most application process.
Personal contract purchase
This contract option is considered as the best alternative to the hire purchase contract. All of the transactions processes work in the same way. However, at the end of the repayment term, the individual is presented with three options:
1. Make the final large payment also known as balloon payment to take the legal ownership of the car.
2. Contact to the monthly repayment process and get upgraded to a newer or different vehicle.
3. Handover the keys to the service provider and walk away with nothing else to pay.
The main benefit of the personal contract purchase is that the monthly repayments are lower than that of the high purchase contract. Also, you are given the flexibility to choose whatever you want to do with the vehicle at the end of the agreement. So, your bad credit UK will not have an effect on getting the approval of the PCP application.
Leasing is the third most popular option in getting the car you want. In this contract, initial deposits have to be made at the beginning of the term. This is followed by monthly repayment instalments. The significant difference is that you do not get the option of becoming the legal owner of the vehicle at the end of the term.
However, the monthly repayments in the leasing contract are 60% lower than that of the hire purchase agreement. You get to have unbeatable deals and business owners have the option of multiple leases, and that does not include any restrictions on the bad credit car credit.
Independent broker support
The best way to secure the affordable vehicle finance option with poor credit is to look at the right place. Many tradition banks will reject your finance applications, but there are various alternatives to explore.
You need to simply contact the independent broker or use the car finance calculator to find out how much you can afford for car finance and make sure you target the right lenders.