Myths About Guaranteed Car Finance

Does guaranteed car finance exist?

Guaranteed car finance doesn’t exist. Nor does guaranteed car finance for bad credit, or guaranteed car finance with no credit check. In fact, it’s a topic discussed by many in the car finance industry. It’s often widely promoted, however, it’s important to know that a legitimate lender will never try to sell you guaranteed car finance of any form.

Think of it like this, you can never have a product that truly suits everyone and their individual circumstances, as we are all too different, and car finance is no exception. There is no one size fits all when it comes to car finance, and therefore there is no such thing as guaranteed car finance. Everyone’s circumstances are different and any responsible lender will consider these before offering anyone car finance. It’s our duty as finance providers to offer customers loans that they can afford.

So if you ever see ‘guaranteed car finance’ quoted on a car finance providers website, then you should act with caution. Picking a reputable car finance company is important, so don’t rush your decision.

Do you offer guarantor car finance?

Guarantor car finance is very different to guaranteed car finance, and the two should never be confused, but it can easily be done.

If you have poor or little credit history, guarantor car finance can be a great way to organise finance for a vehicle. A guarantor car loan, simply put, is where you ask a third party, usually a family member or friend to be a guarantor on your car finance. This means they will guarantee the repayment of your loan in case you miss or default on any payments. In most cases, spouses or others who are directly financially connected to you cannot be your guarantor.

Your guarantor will also have to meet eligibility and affordability requirements. Whether you are looking for a guarantor loan for yourself, or whether you are being asked to be a guarantor, it’s important to know that a guarantor is taking on a significant financial responsibility. One where they’ll be required to make car finance repayments if you fail to do so.

Unfortunately, we don’t offer guarantor car finance at Moneybarn, but we still might be able to accept car finance for you. Although we don’t offer guarantor car loans, we do specialise in bad credit car finance.

Most car finance companies will only conduct a soft search on you from your initial application. This means it won’t affect your credit score unlike a full credit search. Finance companies will then do a full search on you before you have signed the agreement and they have paid the money to the dealership.

Improve your credit score

We don’t only want to help you get car finance if you have bad credit. We want to help you improve your credit score and get you onto a better road ahead. Both in your new vehicle and financially.

Everyone can better their credit score, it doesn’t just apply to people with bad credit. So whatever your credit score is at the moment, it’s always a good idea to learn how to improve your credit score, as a few simple things can really make a difference.

We aren’t financial advisors and therefore can’t tell you what your credit score currently is. However there are companies like Experian and Clearscore who allow you access to see your credit score, whilst also giving advice on how to improve your credit score and move away from bad credit. All you have to do is sign up to their free services and download the app.

We understand that improving a credit score may be easier for some than it is for others. Even applying a few suggestions from this article, could make the difference between a bad credit or good credit score.

Guaranteed car finance questions

Guaranteed car finance garages do not exist. This is because any legitimate vehicle finance provider or garage will not ever be able to guarantee you car finance. There are many checks that every car finance applicant has to go through before they can be offered car finance.

However, not all garages are trying to sell you a fake promise, there are many reputable dealers and garages around the UK.

You cannot get guaranteed van finance. Any vehicle finance provider or garage that tells you otherwise is incorrect, and you should act with caution when dealing with them.

Guaranteed van finance is not possible, as there are many affordability checks that every van finance applicant has to go through before being offered finance. Before these checks have been done, nothing is guaranteed.

You will not be able to get guaranteed motorbike finance, as motorbike finance can never be guaranteed. If a dealer or garage tells you otherwise then you should act with caution when dealing with them and not rush your decision to purchase.

Motorbike finance will only ever be offered to you once the appropriate affordability checks have been completed and the lender is certain that you will be able to afford the monthly repayments.

Whether you have an IVA, bad credit or even great credit, you cannot apply for guaranteed car finance because it doesn’t exist. Car finance will only be offered once the appropriate checks have been done on the applicant. Only after these checks have been completed will vehicle finance be offered.

If you do have an IVA however, we do specialise in offering bad credit car finance to people in an IVA or with a CCJ.

As dealers and brokers have no control over whether someone is approved for car finance, they cannot say if you will be guaranteed car finance.

Lenders have the final say over whether someone is approved for car finance, and they will never say that it is guaranteed. Decisions of whether a person is approved are based around a series of variables like credit score, affordability and many more.

It would be unethical of us, or any lender, to be lending money to people who cannot repay it. This could leave them in a worse financial situation than they were before applying.

Buying your next car

You want to make sure you purchase a reliable vehicle, which doesn’t break the bank. That’s why we’ve put together this helpful guide.

Being self-employed

We consider applications even if you’re self-employed and have bad credit so we might be able to offer you finance even if other lenders have rejected your application.

Our application process

It is important to completely understand the car finance agreement that you may be entering – find out more about how a conditional sale agreement works.