Car Loans

How Do Car Loans Work?

Car loans are the secured loans where the car acts as the security or collateral. You need to pay a minimum deposit, which may differ from lender to lender. We have reduced the size of deposit from 10% (popular in industry) to the 5% to help you borrow a bigger amount. Any fund seeker with a small down payment can come to us and borrow funds in a short time with least formalities.

How Much Can I Borrow Through A Car Loan?

The minimum limit is £1000 and maximum limit is £50,000

The actual amount you can borrow depends on your current repaying capacity. We can help you make predictions through car finance calculator that gives useful predictions and facilitate clear and confident purchase decision.

The factors that affect your car loan amount are –

• Current monthly income which includes only the basic salary and not the commission/perks as that is volatile
• Current monthly expenses which include bills, debts and all types of fixed and recurring expenses
• Employment stability is an important factor. The salary slip from the same company from last 9 months is compulsory.

The above factors are generic for car loans in the UK and help you cover the initial miles during your car purchase journey.

Can I Get A Car Loan With A Poor Credit Score?

Yes, you can get car loans with bad credit. If a borrower has strong repaying capacity and stable, financial conditional with job stability funds can be approved. The online lending practices depend more on the rational approach and the traditional practice of giving importance to only credit score does not exist anymore.

Get a car loan with following conditions –

• Keep your recent financial behaviour flawless through timely payment of bills and other debts.
• Do not apply to multiple lenders it leaves multiple search footprints causing further degrade in credit score.
• Stay in the same job for a long time before you plan to take the car loan to prove employment stability

Most of our borrowers are afraid of credit check and ask if we provide no credit check car loans. We never give false hopes to our borrowers and tell the reality. To be rational, there is nothing like no credit check loans. However, one thing that can prevent search footprint is soft search. If you want that, we can manage and then you can borrow funds without any effect on your financial records.

I Have A No Credit History; Can I Apply For A Car Loan?

Anyone with no credit history can apply for a car loan. Every year we get many queries asking how to get car loans with no credit history. It is as easy as a cakewalk. With strong personal finances, anyone can get funds for any purpose. A big benefit in case of car loan is that it is secured by the car you purchase. The lender has the car as the collateral and in case of any default, it can be repossessed. This fact may sound a bit bitter it brings a pleasant reality too because due to secured type, car loans are easy to qualify.

Borrow Money for Used Cars

Yes, we offer funds to buy used cars. The process of application is more or similar. The only difference is at the part of the inspection we organize to know the condition of the car. Our loan representative may visit you to have a look at the car you want to purchase.

• For used cars, we provide funds up to 80% of the sale price.
• The car should be insured and it should be in its running period of insurance
• Proper documents of the car and its insurance are require to get the funds

Car Loans VS Personal Loans

Most of the time car loans are confronted by personal loans in importance and different people have concerns to know which one is better. We always help our customers know the two sides of a coin and then leave things on their discretion. You can also read the comparison below to gain an understanding on what is best for you.

Car Loans	Personal Loans
For the purpose of car purchase only. You need to first book the car, as without that loan procedure does not start.	Use funds for any purpose. The borrower has the liberty to use the funds either for the car purchase, wedding expense, medical reasons or anything.
Lower rate of interest secured by the purchased car. The obligation becomes less hefty and bring only a lighter burden on personal finances	Higher rate of interest due to no security available. You cannot negotiate with the lender on the rate of interest after a certain limit.
Need a deposit of at least 5% to 10%. It reduces the loan amount in size and also the loan instalments.	No deposit required. You have to pay back the complete amount with same size of installment. However, prepayment is allowed.
Can be obtained easily despite no credit history or low credit history as the loan is secured	The poor credit people and no credit history applicants may have to face complications such as higher interest rates.
Lender keeps the ownership rights of the car until the full payment	On delayed payments lender can report to the agency that causes poor credit score
Maximum tenure can go up to 7 years	Maximum tenure is usually 5 years

Quick Loans Lender not only offers the best car loans but also guide for a better borrowing decision. We get deep into your personal finances to suggest the ways that can help in easy approval of funds. From credit score improvement to maintaining job stability, many such suggestions help our borrowers take calm and correct decisions on their car loans. Do you need financial assistance? We are always ready to offer you something relatable on our loan deals.