You are probably quite used to shopping around for any car you are interested in buying. You think about the vehicle you need, the one that suits your lifestyle and that one you are able to afford.
What might be less apparent, however, is the equal importance of shopping around for your car finance. Not only does the price – the rate of interest you pay – vary quite widely, but there are different methods of financing your car to suit different personal needs and circumstances.
Rather than letting your own shopping around leave you with a financial commitment that might not be the most suitable, or one that comes at a less than competitive price, you might want to draw on the expertise and experience of an independent car finance broker to conduct the necessary searches on your behalf and deliver quotes from which you might choose.
A number of the different options when it comes to choosing a method of finance that suits your particular circumstances, the Money Saving Expert has published a range of guides including personal contract purchase, leasing, personal loans and hire purchase.
When you ask an independent finance broker to do the shopping around on your behalf, you may rest assured that the job is being done by someone properly registered and authorised by the finance industry’s independent regulator, the Financial Conduct Authority (FCA).
That security extends not just to the broker, but also to the lenders, who are also required to conduct their business according to the regulator’s rules.
A further benefit in using the services of a broker may lie in their being able to find forms of bad credit car finance which it might be difficult – and expensive – to find by yourself.
Credit is especially difficult to secure, for example, if you have a poor credit record – and especially if you have previously made an Individual Voluntary Arrangement (IVA) to try to manage your debts, or has county court judgments (CCJs) made against you.
With the help of an independent broker, you may be able to get the credit you need, even with such a financially troubled past – and from any car dealership within the UK.
A competent broker may go one step further by effectively pre-authorising any credit application you might subsequently make by conducting a so-called “soft” review of your current financial status. In that way, we increase your chances of your application being accepted, rather than damaging your credit score still further by registering a rejection.
If you are having difficulty raising the funds to put down as a deposit, a finance broker may also be able to find sources of credit where no deposit is required.