Simply put, open banking means that all UK-regulated banks have to let you share your financial data such as your spending habits, monthly payments and businesses you use (this includes your bank statements, credit card bills or savings statements) with authorised providers offering budgeting apps, or other banks, as long as you have granted them permission.
Open banking allows you to use the power of the information you already own to leverage greater access to financial products and services. Your bank accounts hold a wealth of important information that show how you manage money.
What’s the difference between open banking and my credit score?
Lenders usually take into account three main when deciding to offer you car finance. They are stability, ability, and willingness. Your credit score can really only indicate willingness. And even then, it’s not precise. By using open banking, it gives potential lenders a better idea of your financial history and behaviours.
This means lenders can take into account your income and outgoings, how often you go into your overdraft, whether you save often, keep up with any direct debit payments or spend in high-risk areas like gambling.
How can open banking help me buy a new car?
Open banking frees you from being constrained by your credit score and can help lenders find finance options for consumers who would otherwise be denied credit.
Is open banking safe?
Security is a key component of open banking. It uses rigorously tested software and security protocols to ensure your personal information is safe. You will never be asked to give access to your bank login credentials or password to anyone other than your own bank or building society.
Looking to quote for Car Finance? Check out the Motorly Finance Calculator below to see how much you could borrow.
Car Finance
If you are one of the over 5 million people in the UK that are self-employed, you may be aware that it can be more difficult to obtain car finance. At Motorly, we aim to take the challenge out of the process by assisting Britain’s hard-working Self-Employed to get behind the wheel of a new car. Here’s what you need to know.
What are the difficulties with getting Car Finance If I am Self-Employed?
Self Employed workers are often concerned about how lenders will view them and cautious about offering them credit, as their income can be unpredictable. Not having predictable wage slips can be another worry.
Is it possible to get Car Finance if you are self-employed?
The good news is that you do have options open to you. Being self-employed in itself shouldn’t be a hindrance to getting finance.
Thanks to the explosion in self-employment, lenders have become much savvier in offering self-employed people options to get the finance they need.
Can Motorly Help Self Employed Workers get Car Finance?
While it can be more difficult to secure a great deal for car finance from lenders when you are self-employed, you still have plenty of options available to you.
We work with a large panel of trusted lenders who are experienced in dealing with the requirements of Self-Employed workers.
Top Tips to increase your chances of being accepted
Get on the Electoral Roll: If you haven’t already, you should register for the electoral roll. As it’s an official register of who can vote, it can be used to establish your identity and proof of address.
Be truthful when applying: Lenders are looking to see that you have a clear understanding of your current financial situation. Don’t overstate your income and ensure you know what your outgoings are.
Get your accounts in order: If you can present lenders with your latest trading accounts, you will be able to give a more accurate picture of your financial situation. The more years of information you can provide the more confident lenders will be to offer you credit.
Consider what uses the car will have: Most lenders will not offer credit when the vehicle is likely to be used primarily for business use. This is because wear and tear on the vehicle are likely to be likely and higher than normal mileage.
A larger deposit could help: If you can afford to do so, a larger deposit could help you get accepted. It reduces the risk to the lender, making them more likely to accept your application.
Nothing beats the feeling of passing your driving test. The freedom that driving brings await – all you need now is a car.
However, getting finance isn’t always simple for newly-qualified young drivers.
Car finance can be great for young drivers who require a car but can’t afford to pay outright. By spreading the cost into manageable monthly payments, Motorly can help you get behind the wheel of your new car.
Here, we take a look at the options available to you to make it happen.
Understand your car finance options
When it comes to car finance, there are two main alternatives.
Hire-purchase (HP) involves putting down a deposit (usually about 10% of the total purchase price) then repaying the rest of the balance, plus interest, over an agreed period of time.
Hire-purchase is often the best option for those with have a good deposit to put down and want to own the car outright once they have finished the monthly payments.
Personal Contract Purchase (PCP), meanwhile, requires you to make monthly repayments, but you’re only permitted to use the car until the end of the contract.
At the end of the contract, you have a choice to make. You can return the ca, pay the ‘balloon payment’ to own the car outright, or start another PCP agreement.
Understanding your credit history
Regardless of how you choose to finance your car, there are steps you can make to improve your situation.
It’s a good idea to start establishing a credit history, as this will direct how successful you’ll be in applying for finance when you are ready.
Opening and using a UK current account will help. Paying your bills regularly via Direct Debit will also help.
Just make sure you don’t forget to pay any of your bills, as a missed or late payment will count against you.
If your car is attracting unwanted attention, there are a few tips you can follow to make sure your car isn’t stolen. Here’s our guide on how to keep your vehicle safe.
Do not leave your valuables on display
Hide any valuables in a lockable place – such as a glove box or your boot. If you are unsure, it may be better to take valuables with you.
Keep your car locked
This one might seem really obvious, but it’s vital that your car is locked when it’s not in use. According to the Office for National Statistics, 44% of vehicle thefts happen when the car doors were unlocked.
Don’t leave your vehicle unattended when it’s running
During the winter months, it may be tempting to leave the car running unattended whilst the engine warms up. Opportunist thieves are known to take advantage of this. To make sure that it doesn’t happen to you, do not leave your car unattended with the engine running.
Park your car in a well-lit area
Areas with good lighting and CCTV coverage will deter thieves from targetting your motor.
Use a good quality Steering Wheel Lock
A steering wheel can be a great deterrent against thieves driving away with your vehicle.
Protect yourself against keyless theft
According to security company Tracker, over 90% of the cars stolen that were recovered in 2019 were keyless entry models. To help reduce your risk of theft, you should keep your fob turned off and stored in a safe space when not in use.
Whether you’re already in an IVA or considering arranging one, you may be wondering how it could affect your car finance application. Our quick guide can help.
What is an IVA?
IVA stands for Individual Voluntary Agreement. It is a legally binding arrangement between you and your creditors to pay back your debts. This means it’s recognised by the court and your lenders have to adhere to it.
It’s meant for people who can manage to pay something towards their debts, but can’t keep up with the repayment amounts their creditors are demanding.
Can I get car finance with an IVA?
A common question our customers often ask is how being in an IVA might affect their chances of buying a car on finance.
An IVA does limit your choices somewhat, is it still possible to get Car Finance. An IVA will affect your credit score. But just because you have poor credit, doesn’t mean you don’t have options.
Whilst we can’t guarantee that we can help, our panel of lenders can assist those with a variety of credit histories – including those who are in an IVA.
How Does an IVA Work?
An IVA is set up and run by a qualified Insolvency Practitioner (IP). They will put together the repayment plan (including how much is paid each month, and for how long), and act as the go-between an individual and their creditors, to check they agree with the set monthly outlay.
As long as 75% of the creditors give the go-ahead to the IP’s proposal, the IVA will go ahead. Monthly repayments will then be given to the IP, who will split the funds between the creditors.
IVAs are available to those in England, Wales and Northern Ireland, but not in Scotland.
If you are interested in finding out more, fill out our simple, no-obligation form today to see how much you can borrow today.
How to ensure you stay safe on the roads this winter
Now that the nights are starting to draw in, you’ll probably find yourself driving in the dark more regularly. Here are our top tips for preparing yourself for the winter months ahead and ensure you stay safe on the road.
Check your lights work
Whilst this one may seem obvious, it’s still important that you check them regularly. Don’t forget to check your brake lights, fog lights and indicators at the same time.
Keep a safe distance between you and the car in front
Keeping a safe distance between you and the driver in front should help you avoid collisions. If the driver in front has to stop suddenly, it will give you enough time to react.
Check the treads on your tyres regularly
During the winter months, it’s a good idea to regularly check that your tyres are up to the job. If your tyres are overworn, they could be unsafe or even illegal on UK roads.
The minimum tyre depth on UK roads is 1.6 mm. To check your tyres are legal, we would recommend you use the 20p tyre test. The outer rim of a standard UK 20p coin is just under 3mm wide. To do the test, place the 20p icon into the groove of your tyre’s tread. If the outer rim of the coin is covered, your tyres are easily above the UK minimum tread depth. If you can see the rim of the coin, it’s time to get them checked properly using a tyre tread depth gauge.
Keep an eye out for speed signs
Street signs can be easily missed during nighttime hours. Remember to stick to the speed limits to stay safe.
Keep your windscreen clean
Make sure your windscreen and all other windows are regularly cleaned, inside and out. Dirty windows can increase glare and condensation when driving.
Take your time
Driving at night is generally riskier than day driving. Therefore, it makes sense to slow down and give yourself more time to get to your destination.
When shopping around for the best Car Finance deals, it’s only natural to worry about what effect it might have on your credit score. Many customers like yourself often check if they can get car finance before they proceed, or have even found a car that they want to buy.
At Motorly, we make the process simple, by allowing you to check if you can get approved before you formally take out car finance. By conducting a ‘soft search’ credit check at the start of your application, you can see what your options are without negatively affecting your credit report.
What is a Soft Search?
A ‘soft search’ is a simple credit check that allows us to see your financial history without showing this information to potential lenders.
How does Soft Search Car Finance Work?
It’s easy to get a quick quote with Motorly. By completing the quick application form we’ll be able to give you an idea of your monthly payments what you can borrow, based on your current financial position.
The process only takes a couple of minutes and you will be given a decision straight away.
No impact on credit score
Because we only conduct a Soft Search, it will not impact your credit score, even if you decide to not proceed. It also won’t affect your future ability to get finance.
The Nissan Qashqai has been one of the most popular cars on the market since its launch back in 2007. Offering both style and practicality, the Nissan Qashqai is a great choice for anyone who is looking for a great family car.
By offering SUV styling but with the fuel economy of a family Hatchback, the versatile Qashqai gave traditional family cars such as the Ford Focus or Volkswagen Golf a run for their money.
The latest generation (MK2) was launched in 2014. Due to their practicality and reliability, you should easily be able to find a used model to suit most budgets with ease.
What are they like to drive?
Whilst the exterior is all SUV, the Nissan Qashqaihandles more look your traditional hatchback. The steering is responsive and handles corners with ease. Plus, due to its compact size, parking is a doddle.
Qashqai’s practicality and family-focused credentials are backed up by a top Euro NCAP crash test rating.
What engine should I go for?
If you plan on doing a lot of driving in your Qashqai, we’d strongly recommend that you go for one of the Diesel options available. The 1.5-litre unit is responsive to drive and can get you up to 70mpg – practically unheard of in an SUV.
If you don’t plan on doing a lot of miles, the 1.2-litre Petrol model will get you up to 48 MPG. You can expect a refined, smooth drive from this model.
What issues should I be aware of when buying a Nissan Qashqai
If reliability is a key factor for you, the Qashqai could be the car for you. Most of the key components found in the car have been tried and tested over the years with few faults, meaning you should get years of top, reliable use.
A few owners have reported the car’s rear shock absorbers breaking. Other drivers have reported issues with the engine’s turbo. We’d recommend that before buying any used car that you take it for a test drive to look for these issues.
Want to find out more about getting approved for a new Nissan Qashqai? Check out the Motorly Used Nissan Car Finance Page.
Struggling to get Car Finance? Looking for an alternative solution?
If you have not been able to get car finance in the past because of bad credit history, your options to get a new car can be limited. Larger lenders can be unwilling to offer finance solutions for those with a poor credit history. However, you still have options.
What exactly is Black Box Car Finance?
Black Box Car Finance, sometimes referred to as ‘Pay as you Go Car Finance’, is a solution for drivers who would struggle to otherwise get behind the wheels of a new car.
A small box is discreetly fitted into the car by a qualified technician. As long as you keep up the payments on your car you will get full access to drive it.
Near the end of each month, you’ll be reminded that your payment is due. Once your payment has been made, you will be sent the activation code. This can be entered into the box and will grant you full access to drive the car for the month.
When you get to the end of your payment agreement, the black box will be removed. The ownership of the car will be transferred to you (assuming all payments have been made).
What happens if I miss a payment?
Should you miss a payment, you will not receive your activation code and you will not be able to drive the car. However, most lenders will allow up to 30 days to sort out your payment and will keep the car running in the meantime.
If you still fail to make your payments after that, the car will be deactivated remotely and you will not be able to drive the car.
What are the advantages?
By getting a black box installed, lenders will be more prepared to provide finance to those with a poor credit history. Because of this, it decreases car finance costs.
It is a viable financial option for those with poor credit scores and can make it easier to get approved.
At Motorly, we aim to help as many people as we can, even if their history isn’t perfect. Box Car Finance offers can help people like you finance their next car
