Courtesy: PixabayA car can either reduce your travel costs or increase income levels, but how to finance a car? Here is the solution kit.

Do you need a car? Not enough money into your savings account? We will provide you with the necessary information on how to finance a car. 

While the radical changes in the employment taking place, the demand for private vehicles is increasing in high number. Once upon a time, a car was considered one of the luxury products, but now it has become a useful and essential part of our life. However, it has made our personal life easy and comfortable. We will give you here complete guideline of financing a car. This is kind of saving money on financing your car. To save money may read my article A hidden income toolbox.

What is finance a car?

You need a car for your personal or commercial use, but you dot have saving balance in your account. You can get a loan for your car if you have financial ability to repay the instalments to the lender company every month. For example, Mr Robin is an employee of M&S. He lives in Bexleyheath, and his office is located at Woolwich in London. He travels every day on public transport. So, it is a little bit uncomfortable and difficult for him. As a result, he wants to buy a car, but he has got no savings money at this moment. In this case, he can apply for a car financing loan to a lender agency. Although he has no saving money, he can afford to repay the instalments every month. In fact, he is initially illegible for car finance, but there are some other requirements too. Please go thoroughly for more details. 

Where to get car finance?

As you may know that you can get a loan from banks, credit unions, and some other financial institutions. However, you can get it from the car dealers, and manufactures. We will give you car finance Banks and other institutions in the bellow. 

Requirements for financing a car

Each country has individual requirements of being illegible of financing a car. Similarly, in the UK the minimum age of financing a car is 18. If you are 17 years old, you cannot apply for a car financing application. You must pass the driver licence test and have a valid driver licence to be illegible. One more thing to keep in mind, you should a regular basis source of income. For example, Private or public jobs; you are an entrepreneur, or have running business etc. Additionally, you should provide to the company. 

Apart from this, Proof of affordability: You must show that you are solvent enough to afford the monthly repayment. It might be you are a business holder or a service holder and able to make the monthly repayment. However, you show that you have an adequate saving fund to finance your car. If you’re thinking of financing a car, it is a good idea to check financial credit history. Bad credit history will not approve the loan. If your credit history is good, you are lucky. Then you can go ahead. In some case, if your credit history is bad, you can build up. There are many companies who can give help you to build up your credit history within a couple weeks. You must be a UK citizen for financing a car and maintaining a current account for at least 3 months. 

In addition, You may be asked for six to eight references in some cases. Sometimes it varies depending on the lenders. 

A convenient way of finance a car

You may ask that which is the best and convenient of the way of getting car finance whiter through a Bank or Dealer. I would say the most convenient way is through a dealer because they have both facilities. For instance, if you are financing a car through a dealer, you can get both car and finance in the same place. Apart from this, you will get lower interest rates on new car finance. 

Furthermore, You must aware of the rates. There are three types of rates of car financing institutions. For example, fixed-rate, adjustable-rate, and combination-rate. You should know whether the interest rate is fixed or adjustable. You must know the rate types before signing the agreements. Otherwise, you will get in troubles. It would be better for you to go for the fixed rate.   

UK Car Finance companies:

Apart from this, there are many banks in the UK where you can get car finance. We have collected some information for you. Here is the list:

Name of Banks
Loan Amount
Rates
£7,000  - £25,000
3.4% APR
£1,000 - £25,000
3.3% APR
Barclays: www.barclays.co.uk
£7,500 - £15,000
5.5% APR
£7,000 - £25,000
3.8% APR
£7,500 - £25,000
2.9% APR

Please keep in mind that it is better to check your bank credit history prior to g ahead. You can build up your credit card history, If your credit history bad. You may try Experian credit history checker for free. Here is the link: www.experian.co.uk


Procedure

First of all, make some notes before getting started. What type of car you are going to buy and how much it will cost you. However, you should ask the financing company or bank authority about the types of agreements and the monthly repayment. You may browse the websites that we have provided and compare the rates and loan amounts. Then, you decide which bank or agency will be affordable for you.


Summary 

Finally, an experienced man can sometimes save a lot of money. Financing a car is not an easy job. You might be confused if you do not have prior knowledge. Please read this guideline carefully before going to finance a car. We hope this guideline will help you to make your dream true.