For many years people have struggled to secure car finance due to bad credit.
Recent studies have shown that auto finance has been gradually an increasing market.
Over £30 billion in new credit was issued by car finance dealers in 2016 alone.
Source: Finance & Leasing Association figures in real terms.
About three-quarters of the growth in consumer credit since 2012 has come from car finance.
The Bank of England estimates the annual growth rate of dealership finance has been around 20% since 2012.
Banks have contributed about £24bn in loans, while other providers, such as manufacturers’ own finance arms, make up the bulk of the market at about £34bn.
So looking at the growing market and demand, it’s only normal that many finance companies like CarVine, have to accommodate.
1 in 3 Brits Struggle With Bad Credit
A recent study by giant switching company uSwitch shows that 1 in 3 brits get rejected credit due to bad or poor credit score.
Of the 18-34 year olds who have been turned down for credit, 65 per cent have been turned down multiple times and a 25 per cent have been rejected more than five times –that’s over one million young people.
The fact is that not everyone needs a fancy smartphone, great broadband or TV package to watch sports in full HD but we all need some form of transportation to get around.
More and more people with bad and poor credit need finance to get on the road.
Getting finance for a car with bad credit is now easier
Looking at the studies above it’s safe to assume that more people have problems maintaining a good credit score. For that reason, car finance companies like us have several options for people with bad credit.
The good news is that obtaining finance for a car or van is now easier compared to previous years due to market demand.
You may also have a better chance of getting approved if you can show a regular income and the debt is secured against the car.
Car Finance Advantages
Despite the fact that getting car finance with bad credit has its disadvantages like high-interest rates, larger deposits and the difficulty of actually getting accepted, it also has its advantages.
- You can get a car with a low initial deposit. It could also be handy for those who would otherwise struggle to get decent rates on a personal bank loan.
- Buying a car on finance enables you to purchase a better car than you couldn’t otherwise afford.
- You can budget better because you will know exactly how much you’ll be paying, every single month, which makes it easier to budget your future expenses and will also help you with any future savings.
- You can buy any car from any dealer which keeps your options opened.
Should you consider car finance if you have bad credit?
Obviously there are disadvantages as stated above but still, car loans for people with bad credit can be found *, take CarVine for example.
A popular worry is that your credit will be affected if you keep applying, We search and compare your finance options to get you the best price available without any hard searches, so your credit score will not be affected.
Bad credit car finance is our speciality, apply today and let’s get you on the road.