Five easy steps for getting pre-approved for car finance
Buying a used car is a big investment and for many people, the first step is working out how much money they'll be able to spend on their new set of wheels. This is where car finance is so beneficial, enabling you to spread the cost of a new/used car across an agreed timeframe, rather than having to pay for it in full and up front.
What's the difference between a free finance check and getting pre-approved?
Many lenders offer free checks for car finance, but this isn't the same as getting pre-approved. You can fill out a 'soft search' finance application online and receive a decision in just a few minutes, with an indication of how likely it will be that you would be approved for the loan in question, for example - High Likelihood of Approval.
This won't affect your credit rating, but it also doesn't guarantee that you'll actually receive the finance agreement you've applied for, even if you get a good chance of being approved. Getting pre-approved for car finance works differently. It's a real application, so you know that any offer you receive will actually give you the finance you need to secure your next used car, without any obligation to take it!
Here's our take on why getting pre-approved for vehicle finance is a great idea, and how the process works at Carbase.
How to get pre-approved for car finance at Carbase
You can apply for car finance ahead of your visit to Carbase in just five simple steps:
1. Pick your used car
The first step is choosing from our fantastic range of used cars and used vans! Once you've found the kind of vehicle you're interested in, adjust the deposit amount, preferred term and the sort of mileage you're after, then click the 'Get Pre Approved' link on the listing. Remember, your choice of car at this stage doesn't tie you in to buying it, but you can use it as an example of the kind of vehicle you may be able to get finance for.
You'll go through to the Carbase dedicated section of the NewVehicle.com website, our expert vehicle finance pre-approval partners. You'll have the option to go for a free 'soft search' finance check, or to go ahead and apply for finance. For full pre-approval, select 'Apply for finance'.
2. Set up a secure account with NewVehicle.com
The next thing to do is to create a personal account with NewVehicle.com.
Submitting your data will allow them to send your information to us and the lender via their secure portal. NewVehicle.com will give you a full breakdown of how your personal data will be used.
3. Manage your application in your own time
Once you have an account, you can login in any time to put your car finance application together.
Not to worry if you're missing some of the info you need or you haven't the time to apply all in one go, it's easy to save your application at any stage and return to it later.
4. Send your application
When you're ready, submit your car finance application and NewVehicle.com will do the rest. They'll examine the info you've sent against the credentials needed for the finance deal you're applying for, and will give you a definitive answer one way or the other within 60 minutes when our stores are open.
5. Come and see us!
If your application is successful, congratulations - you're pre-approved for car finance!
The final step is to come along to Carbase and take your chosen used car, or another that catches your eye, for a spin. Remember, there's no obligation to accept the finance agreement you've been pre-approved for, but knowing you have it can make the buying your next used car all the simpler and even more enjoyable.
Why should I get pre-approved for car finance?
Today's tricky financial climate means that loan eligibility criteria can change almost constantly, but with a pre-approved car loan offer, you can go used car shopping without the niggling doubt of what you may and may not be able to afford.
Your potential lender will have let you know how much you are likely to be approved to borrow with a Hire Purchase (HP) and/or Personal Contract Purchase (PCP) finance plan, how this equates to monthly repayments, and what the interest rates are - valuable information you can use to find a used car that ticks all the boxes and won't break the bank. After all, no one wants to fall head over heels for a used car that's way out of their price range!
Having an offer of pre-approved car finance can give you the confidence to weigh up and test drive used cars you know suit your budget, particularly if you've been turned down for finance in the past. What's more, you won't need to spend time applying or divulging sensitive personal information when you're at one of our stores either - that's the beauty of pre-approval.
At Carbase, we're here to offer any further information or impartial advice you might need when looking for car finance pre-approval, making a full application or indeed, any aspect of car finance! Take a look at our car finance guides, speak to one of our team over live chat, or pop along to your nearest Carbase store.