There's plenty to consider when buying a new or used car without the anguish of fretting over your credit status, and wondering whether your car loan will be approved.
Unfortunately, because of that fear of being rejected many people don't even bother to apply for car finance. Perhaps due to what they have read, or maybe because they were mis-informed by well-meaning friends or family, many would-be car buyers dismiss the idea that they ever could get car finance. They think that past repayment problems and a damaged credit record means they won't be considered. They may even have been turned down for a new account by credit card companies or high street banks so they believe that they will be unable to get credit anywhere.
However, that assumption is deeply flawed. Even if applicants for finance have missed payments on past loans or even had CCJs recorded against them, they could still be successful in getting finance for a car from many of the UK's major car supermarkets. They tend to be a lot more sympathetic about past problems than high street banks, and therefore more willing to lend.
Because of their more lenient approach, buying a car on credit from a car supermarket tends to be the easier route to successful finance. That's because any vehicle bought from the dealer using their car finance will be secured against the loan. The dealer is protected by way of a guarantee because they can recover the vehicle should you stop paying for it. That makes them more willing to give those with a poor credit record a second chance, and the opportunity to prove that borrowers can handle the financial responsibility of taking out a loan.
To apply for car finance most dealers only insist that applicants are over 21, have a valid driving licence and have been resident in the UK for at least five years. And even on the rare occasions when there is a problem with an application all is not lost. It may still be possible to progress the loan if a guarantor can be found, probably a family member or close friend, to guarantee to pay back the loan if the applicant defaults on payments.
So, if you are agonising over whether or not you'll get car finance because of a poor past credit record you may wish to reconsider and start to dream about your new dream motor.