There are many options when it comes to funding your next car, van or bike and we want to make sure you can choose one with confidence. If you’re looking to spread the cost of your payments over a number of years, finance could be a good option for you. Our trusted dealers are on hand to guide you through the finance options available and help you choose the right one to suit you.
Below, we explain the types of car finance available, the ins and outs of car finance checks and insight into the power behind findandfundmycar.com.
A HP agreement* lets you spread the cost of your vehicle, plus any interest and the option to purchase fee at the end, by paying fixed monthly repayments, usually over 12 to 60 months. Once you have paid all of the monthly repayments, the vehicle is yours.
HP could be good for you, if:
Similar to a HP agreement, a PCP agreement* lets you spread the cost of your vehicle by paying fixed monthly repayments, usually over 36 to 48 months. At the end of your agreement, you pay a final balloon payment so you benefit from lower monthly repayments compared to HP.
At the end of your agreement, you have 3 options: retain, return or replace the vehicle.
PCP could be good for you, if:
So, what checks are done for car finance? When applying for finance, lenders need to make sure that the agreement is not only manageable for you, but that you also meet their lending criteria.
In total, a lender will typically undertake the following checks:
This is a basic part of all credit checks. It ensures lenders know who the borrower is and eliminates the possibility of identity theft or fraud.
The identity check is simple and covers:
Sometimes, a lender may ask for you proof of your address. This may be a simple step, but you should always ensure you get it right. Having incorrect address details can impact a car finance application significantly.
Most lenders will accept:
You’ll need to provide information on how much you earn. That way, the lender can see if the finance agreement is manageable for you. .
There are two types of credit checks a lender will carry out:
A soft credit check is a brief overview of your credit. It scans your history and has a top-level look at it, giving the lender a general idea of your credit health. This doesn’t impact your credit file.
A hard credit check is a little different. It's more detailed and leaves a mark on your credit rating. If you have too many hard credit checks in a short time, it may paint you as a frequent, unreliable borrower to lenders.
A soft credit check gets an agreement in principle with the lender. Once an agreement in principle is made, then a hard credit check is performed.
findandfundmycar.com is powered by MotoNovo Finance, who have specialised in motor finance for over 40 years. They offer finance through trusted dealerships all over the UK. So instead of you buying the vehicle outright, MotoNovo pay the dealership and you make the repayments to them every month until it’s paid off.
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