Bad Credit Car Finance is the most heavily promoted of all finance products with companies advertising heavily in most of the UKs National newspapers, the Internet and television. But why?

 

Because as many as 1 in 4 people in the UK would be declined regular car finance. So the bad credit car finance market has boomed for those companies who initially became involved.

 

 

Usually Yes they can. However there are limits, and you need to be realistic about what's avaialble. They cannot help everyone!

 

A term often used in relation to bad credit car finance is "Guaranteed Acceptance" or "Guaranteed Car Finance". There really is No Such Thing!

 

Of course car finance is secured on the vehicle, and so is a little easier to get than an unsecured personal loan. If you fail to make your car finance payments the company can repossess your car. However nobody can guarantee to accept you! You do need to meet certain basic criteria.

 

Most companies will ask you to provide proof of your income, e.g Payslips if you are employed, or bank staements if you are s-employed. You will also need a Full UK Driving Licence and proof of your address, e.g Utility Bill, Council Tax Bill etc.You willl also need some cash deposit or a reasonable part exchange vehicle.

 

All Finance Companies will carry out a Credit Search just to confirm you are eligable, meaning you are NOT currently bankrupt or in current financial difficulty.Finance companies do have to be seen to be lending responsibly. 

 

 

By comparison with mainstream motor finance, companies offering bad credit car finance will be more expensive. The interest rate you will pay will reflect your circumstances. The lowest we've seen advertised are 18.8%-29.9% APR from Welcome Finance, and 28.7% typical APR advertised by market leaders Accept Car Credit. Both rates are resonable for this type of car finance. 

Accept Car Credit also offer greater flexibility by allowing you to choose the vehicle of your choice from a local dealership, rather than having to travel to a specific branch.

Some independent car dealerships also offer bad credit car finance but most do not. There are also finance companies and brokers offering bad credit car finance to customers direct. This enables you to purchase a vehicle from any car dealership but does not include private sales.   

 

There's a good chance that you will get a car on finance. This can then help you establish or re-establish your credit rating as good credit as well as bad shows on your credit file for the future. Interest rates advertised by the large specialist companies appear reasonable.  

 

If buying from a car supermarket style company, you'll have to buy a car from their stock. This may not have been your first choice. You will pay a higher rate of interest.

 

 

Believe it or not, all is NOT lost!  If you are an ex-bankrupt or your credit history is such that none of the bad credit car finance companies can help you. Maybe you are unable to prove your income or have recently become s-employed. If that's you then take a look at our sister site Car and Vehicle Leasing UK. Offers a vehicle contract hire scheme for new and nearly new cars regrdless of your credit history.

 

 

To visit many other websites offering bad credit car finance, make enquiries and apply direct online please see our     Bad Credit Car Finance category.