January 07, 2020 at 2:49 PM

Am I Eligible For Car Finance? 

 

To be eligible for a loan you must: 

  • Be a permanent resident of England, Wales or Scotland.

  • Have lived in the UK for at least three years. 

  • Be aged between 18 and 74 and won’t be 75 over or at the end of the loan term. 

  • Be in employment or retired and have a minimum annual income of £10,000

  • Not have had any County Court Judgements in the last three years. 

  • Not have been made bankrupt, had any Debt Relief Orders or gone through Individual Voluntary Arrangements in the last six years. 

  • Have a UK bank account in your name. 

  • Not be using the car for commercial purposes. 

 

What Are The Different Types Of Car Finance? 


Personal Loan 


This is one of the most common ways to finance a new car. You will borrow money from your bank/building society. When you buy the car, you will get instant ownership. 


Personal Contract Purchase


With this method, you will pay a deposit of around 10%, then you will have fixed monthly payments. This is ideal if you are flexible with what happens at the end of the agreement. The car will belong to the finance company during your contract, and you will only be paying off the depreciation. 

 

This is usually the preferred option for purchasing a new car as the monthly payments tend to be lower. However, once your contract ends you will have one of three choices;

 

  • Pay the remaining value of the car to keep it. 

  • Exchange the car. 

  • Return the car to the supplier.

 

Hire Purchase


Similar to PCP, hire purchase requires a deposit and fixed monthly payments. The car is owned by the Hire Purchase company. You will only be hiring it until you have made the final payment, after which you will own the car.

Leasing 


This option means you are renting and therefore will never have ownership of the car. Unlike PCP, you will not have the option to buy the car at the end of the contract. 


What Happens If I Have Bad Credit? 


If you have a poor credit history, you can still apply for car finance. Leeway Motor Company will look at your personal circumstances, such as your employment status, age, income and loan size along with your credit history. You will then get your exact interest rates and payments.

 

Can I part exchange my car as a deposit?

 

Traditionally, car dealers will take your old car as part exchange for the new one. Part exchanging is different. You will need to actually sell your car in order to use it as a deposit for your new one. 


Why Should I Finance My Next Car? 


  •  It’s a secure way to fund your next vehicle

  • Tailored finance packages

  • Low payment plans

  • Simple 2-minute online application 

  • Refused Credit? We Can Help

  • Access to over 15 trusted lenders

  • HP, PCP and lease purchase options 

  • Competitive fixed interest rates 

  • Free credit score

 

How Much Can I Borrow? 


Subject to satisfying normal credit criteria, and taking into consideration the affordability of the loan we can arrange up to the full amount of the vehicle being purchased, although in certain circumstances we may require you to contribute a deposit. 

 

How Do I apply? 


The best way to apply for finance is to browse our stock on our website and then from there you can select the vehicles you are interested in and view the finance details at the bottom of each individual vehicle page. You can then apply for finance using our online form.

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