Whats the Story With Guaranteed Car Finance?
There are many companies out there – especially on the Internet that claim to offer guaranteed car finance in their adverts but how true is this. Here at MSG we can assure you that this is no bold claim and in 2009 so far we have managed to get acceptance for motor finance for customers that have had the following situations; One customer was presently part way through an IVA arrangement and had arrears on the mortgage at the time, which would obviously mean an instant decline with the great majority of car finance companies. Using one of our specialist funders we were able to get this customer approved and into exactly the same car they enquired on! No catches and no switching them into a 4 year old Fiat Panda. Simply – we offer the service we state and while we cant guarantee car finance for everyone we can state that we are one of the UK’s biggest specialist Bad Credit Car finance arrangers. The reason we can do this is because the lenders we operate with are specialist to this type of ‘sub-prime’ market and so have a whole different criteria when it comes to lending to motorists.
How a Standard Credit Score Works
With your standard lender they would ask for your personal details, address and job history and feed it all into a computer. This would then cross reference against you credit file going back for the last six years time where they can see even if you were one day late on a credit card payment for example. The computer would then decide if you fitted their requirements – in that you were little risk to them lending you money. In a large majority of cases the underwriting isn’t even done by a human as it is automated to a strict criteria -ie no adverse credit at all. How unfair is that – as the computer can’t understand the reasons behind any of the data and makes a mathematical decision based on programming. The Car finance that we operate with doesn’t go off the problems you might have made in the past but is based upon underwriting decisions geared towards what your current situation is. This will mean that as long as the lender believes that you can make the repayments and prove who you are then they are willing to take the risk. Supposed Guaranteed car finance companies are often simply Secured Loan lenders who want your house as security or even fee charging loan brokers who will rarely come up with the goods once you have paid them some money.
How is Car Finance For Bad Credit Possible then?
MSG Cars are able to operate as our finance companies will charge a slightly higher premium than high street rates and the initial payment required before delivery will be set at four times the monthly amount. To help offset his though we can source your car from any UK dealership so to get you the best monthly price we can always look at a nearly new or pre-owned vehicle to bring the total on the road amount down. It isn’t possible to offer a No credit check service and this is normally only offered by car rental companies- the finance companies that we operate with have a completely different underwriting system that means we can get approval for customers with bad credit, CCJ’s , mortgage arrears, defaults, missed or late payments, debt management plans, IVA and even current bankruptcy. The credit search completed will be geared more heavily towards voters roll search and confirming identity as opposed nit picking your credit profile but obviously if you have have several cars repossessed in the last few months this will go against you!
Common FAQ’S for Guaranteed Car Finance
With all applications you will need a Full UK passport that is valid or if this isn\’t available we will need a copy of your birth certificate. The name that is on the identification needs to match that on the application form completed. You will also need to provide two months payslips or bank statements to support your proof of income.
The clock starts as soon as you hit send on the application form on our website and you can be assured of a quick turnaround. The great majority of customers will receive a decision Instantly with the rest within the hour and so there is no waiting days for someone to come back to you. As soon as you have then picked your new vehicle and are happy with the price we can issue your finance or lease documents for you to sign and return. All that is required then is for us to send the dealership the funds and away you go in your new motor!
We can fund any car on finance providing it is purchased from a dealership and has less than 70,000 miles on the clock. It can be no older than 7 years in age either and we do prefer customers to use garages that have a decent forecourt with at least 10 cars for sale. It is just the same process if you were a cash buyer so even if your local dealer has declined your application we can make sure you still get the car you want.
With all of our current Car Leasing and outright Finance lenders you will have to contribute some form of deposit or initial payment – either by way of cash or your existing car as part exchange. This amount on most cases works out at around four times the monthly repayment amount as a minimum but on applications with a better credit score we can offer a reduced amount of £600. The higher the deposit amount though – the lower your monthly payment will be!
In the eyes of the right type of lender and Bankruptcy will usually mean that a person has no outgoings other than rent and essentials and so has a clean slate as far as credit is concerned. This means that they are much more likely to be able to afford repayments – even when compared to someone with perfect credit but lots of obligations such as Mortgage, Bank Loan, Car finance and Credit Cards! Our lenders will consider all discharged Bankrupts.
In the systems that we use as a company is isn\’t possible to Guarantee that every application is approved and that\’s a fact. If something sounds to good to be true it usually is and while we are aware of smaller Dealerships offering there own stock to practically anyone at much inflated prices we often find that the great majority are false claims. Lets face it – if you were the lender would you consider someone who didn\’t have any traceability and was practially invisible when it comes to previous finance? The risks involved would be too high and what you will find are that there will maybe be a small garage that is willing to take a risk for the potential profit they expect to make – no responsible lender would say yes to everyone. The good news is that if you are in the market for a vehicle and have poor credit MSG Cars are the next best thing to Guaranteed Car Finance and lets face it – if we couldn\’t get customers approved we wouldn\’t be in business!