How To Improve Your Chances Of Getting Approved For Car Finance In 2023

Are you ready to drive away in your dream car? If the answer is yes, then securing the right car finance deal is a crucial step. But before you start your search for the perfect car, there are some things you can do to increase your chances of being approved for finance in 2023. In this blog, we’ll share our expert tips on how to prepare for a car loan and improve your chances of getting the car you want. So, buckle up and let’s get started!

Having A Deposit Can Seriously Boost Your Chances

One of the first things you should consider is saving for a deposit. Although no deposit options are available, a larger deposit will reduce the amount you need to borrow. By borrowing less, you’ll decrease the size of your car loan and potentially reduce your monthly payments or shorten your loan term.

Additionally, having a larger deposit can increase your chances of getting approved because the more you borrow, the riskier you may appear to the lender.


Understand Your Credit Score

Another important factor to consider is your credit score. When applying for Car Finance, lenders will take your credit score into account. It’s essential to know your credit score and where you stand, so you can make informed decisions about your finances.

If your credit score is lower than you hoped, don’t panic! There are several steps you can take to improve your credit score, including registering for the electoral roll, paying your bills on time, checking for mistakes on your credit report, and reducing credit card utilization.


Don’t Get Carried Away With Your Budget

Next, it’s important to research the type of car you want and create a wish list of features you require. This will help you stay focused on the type of car you need and prevent you from overspending. It’s also crucial to consider your future needs, such as starting a family, when selecting a vehicle.

Selling Your Old Car Help Help Finance Your New Set Of Wheels 

If you have an old car to sell or part-exchange, it can help to get your finance approved. The value of your old car can be used as a deposit in the new car loan deal, reducing your borrowing amount. It’s recommended to use an online valuation service to get an idea of how much your old car is worth, but keep in mind that the final value may be different depending on factors such as the condition of the vehicle.


Don’t Overstretch Yourself

Finally, deciding on a budget is crucial. Knowing how much you can afford to pay without overstretching yourself will ensure you don’t start looking at cars you can’t afford. It’s important to remember that car ownership costs aren’t just the cost of the vehicle itself. You also need to factor in annual MOT, tax, fuel, and maintenance costs.

By saving for a deposit, checking your credit score, researching the type of car you want, valuing your old car, and deciding on a budget, you can increase your chances of getting approved for the car finance you need. So what are you waiting for? Apply for Car Finance today and see how much you can borrow.