Call0800 066 2888

Spread The Cost

Spread The Cost

Calculate My Loan
Monthly Payment £0
Total Repayable £0
(7.8% APR illustration)
Apply Now
This does not constitute a quote, it's for illustration purposes only. Rates may vary depending on loan amount and individual circumstances.

Guaranteed Car Finance: Fact vs Fiction

March 21, 2016

Today, we’re putting so-called ‘guaranteed car finance’ under the microscope to demystify the truths behind it, separating the facts from the fiction.

CLW upload 1

 

What is ‘guaranteed car finance’?

If you’re struggling to find a car finance deal or get an application approved, you’ll undoubtedly have stumbled across credit companies advertising ‘bad credit loans, guaranteed approval, guaranteed car finance, no credit check’ aimed at financially vulnerable potential customers. These lenders seemingly claim to offer unconditional credit with no strings attached. In many cases, it transpires that all is not as it seems – with some companies claiming their high approval rates give them the right to claim their loans are a sure thing, or simply advertising illegally.

Fact: It’s illegal for finance companies to advertise ‘guaranteed car finance’ unless they’re explicitly offering loans to anyone who applies, no questions asked (which they usually aren’t!).

If you’re suffering from bad credit, car finance deals can be few and far between – making it tempting to turn to lenders claiming to offer ‘guaranteed car finance’. Unfortunately, nothing in life is guaranteed – and car finance is no exception. That being said, help is available if you’re looking for poor credit car finance options.

Why should I avoid so-called ‘guaranteed car finance’ deals?

Fact: There’s technically no such thing as ‘guaranteed’ car finance, as lenders are required to pay due regard to the interests of their customers under Financial Conduct Authority (FCA) rules – and offering loans left, right and centre without appropriate checks would be both unethical and irresponsible. Responsible lenders work to ensure their customers are able to afford the loan repayments, avoiding getting them into financial trouble.

While no credit check car finance deals can be appealing, especially if your car finance applications have been rejected in the past, the credit check is designed to protect you as well as the lender. Car finance is a fantastic option if you want to spread out the payments on your next car, or make a more expensive model affordable by avoiding the upfront cost – however, it’s important to work out how much you can afford when it comes to repayments.

By working out your budget and factoring in the running costs, there’s no reason you can’t be driving your dream car with enough cash left over at the end of the month to remain comfortable. If you’ve got a history of falling behind on payments or your income is lower than your expected outgoings, you could end up in financial hot water.

What are my options?

At The Car Loan Warehouse, we specialise in finding car loans for those struggling to obtain credit. When it comes to car finance, bad credit shouldn’t have to hold you back – and whether it’s a less than perfect credit history or a lack of deposit funds, you can give our friendly and experienced team a call on 0800 066 2888 to talk through your concerns.

While there are no guarantees, we love to say yes and work with a variety of specialist lenders – giving you the best chances of getting your car finance application approved. As long as you can manage the repayments, we should be able to help! For all the info you’ll need to make an informed decision, read more about guaranteed car loans.

About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.