How to get yourself ready to apply for car finance

You’ve probably heard of the saying, “if you fail to prepare, prepare to fail”, and it’s absolutely true of the process of applying for car finance, too.

Indeed, it’s amazing to think that despite car finance being one of the biggest debts anyone will take on in their lifetime – other than taking out a mortgage for a house – all too many people don’t seriously prepare before making that all-important application.

So, here at CarFinanceGenie, we decided we’d help you to get ready properly for your own car finance application, with the below handy tips.

Save money in advance

While it’s true that many of us simply don’t have the cash in our bank accounts to be able to buy a car upfront these days without resorting to some kind of finance deal, having at least some funds ready and waiting before you apply can really help to lessen your financial burden.

After all, the more savings you have prior to applying, the more money you will be able to put down as a deposit. That will mean you don’t have to pay quite so much for your car finance deal – both per month, and in terms of the overall cost of borrowing.

But don’t worry if you have an urgent need for car finance and lack any money for a deposit, as we do also make car finance available through our lenders that doesn’t require a deposit at all.

Take a look at your credit report

Lenders will certainly look at your credit score when you apply for credit from them, so you should be doing the same in advance. It’s free to check your credit report with the leading credit reference agencies like Experian and Equifax.

A better credit score will maximise your chances of being able to access the car finance deal you want. It’s therefore really important to take the opportunity to correct any errors that might be damaging your credit score, and to improve your credit rating as much as you can before applying.

Assess your car finance budget

Working out how much you can afford to spend on car finance can be more complicated than it initially looks.

Yes, on one hand, our car finance calculator makes it easy to input details like how much you wish to borrow and what your current credit score is, so that you can quickly see what your eventual car finance agreement might look like.

But a car finance deal is also a much longer-term commitment than just one afternoon of applying. You’ll therefore need to think about both your monthly and total repayments, in light of how your life and financial circumstances might change in the future.

Personal contract purchase (PCP) agreements, for instance, come with a final ‘balloon’ payment that you’ll need to budget for paying, should you wish to own the car at the end of the loan term.

And you also won’t want to be that person who impetuously takes out an expensive five-year car finance agreement for a two-seater sports car, if you might be starting a family in 18 months and therefore need to switch suddenly to a practical hatchback!

Determine the vehicle that best suits your needs

We’ve already just touched on this subject, and it’s a really important one when you’re seeking car finance. Carefully considering your desires, needs and circumstances both now and in the future, will help you to narrow down the vast range of car manufacturers, brands and models out there.

Obtain car finance through CarFinanceGenie, and we’ll give you access to our generous stock of hundreds of quality used cars, as available from our carefully selected dealers. And even if you don’t find the car you want in our existing stock, we can help to locate the perfect vehicle for you.

Just a few steps of preparation could leave you much better-placed to land the car finance deal that’s right for you. And once you are ready to apply, don’t forget that we will give you a decision on the same day when you seek a competitive car finance quote from us.