Investing in a car comes with a lot of questions, from the make and model to what you’re planning to use it for. But possibly the most important consideration is around financing a vehicle, and there’s a lot of conflicting information that might make navigating buying a car seem difficult.
With so many different options available, there are lots of questions that are common when you’re looking into it. Jonathan Such, Head of Sales at First Response Finance, experts in vehicle finance, has offered expert insight and answers to some of the most asked questions around car finance, scraped from the internet.
Can I get vehicle finance if I have a provisional driving licence?
As you’re learning to drive, you’re likely to be looking ahead at your potential car and thinking about finance. This raises the question of whether you can get it while having a provisional driving licence. Well, Jonathan Such says yes, you can! “There are some rules/restrictions around the finance agreement going live, but our Underwriting team will discuss these with you.”
Where can I buy a car from?
There are numerous options available for purchasing not only cars but also all kinds of products and services. However, this can lead to confusion when finding out where to finance a car purchase. You can buy a vehicle from any Financial Conduct Authority (FCA) authorised dealership, as they’re in line with regulations and standards for operating and practices. This is crucial, as Jonathan Such expresses that vehicle financers can refuse to work with dealerships because of prior experiences or negative customer feedback.
Do I have to pay a deposit?
Whether you must pay a deposit is a case-by-case answer. The biggest factor for whether you may need one depends on your credit limit and the cost of the vehicle. If you have poor or bad credit, then you’re more likely to be asked for a deposit.
Who do I pay the deposit to?
The simple answer for who you pay the deposit to is the dealership. The larger your initial deposit, the lower your monthly payments are likely to be.
What if I go and view a vehicle, and I don’t like it?
Buyer’s remorse is a very common occurrence in car buying, with research from Churchill Expert finding that as many as 73% of car owners would consider changing their car because of their regrets. This is why it’s so important to research all options available, and Jonathan Such has stressed the importance of seeing a vehicle before deciding to move ahead with it: “You should always view the vehicle before approving the finance. There is also a 14-day right-to-withdraw period from when funds are released. Signing and completion of agreement needs to be pressed before funds are released.”
What if I don’t like the vehicle and I can’t find anything?
If you don’t like the vehicle you have viewed and you’re struggling to find alternatives, there’s no need to panic. Jonathan Such makes it clear that you won’t lose finance for the vehicle: “The finance approval remains in place, ready for when you have found a suitable vehicle. If you still can’t find anything, your financer may have a team that can help you find one, like ours does.”
How soon can I get the car/pay the dealer?
So, you’ve gone through the process, got your finance quote, and funds have been released. Your next question will likely be, how soon after you can get your car or pay the dealer? While this varies based on the financer you use, Jonathan Such has stated that when you apply with First Response Finance: “97% of the time, funds are usually sent within 15 minutes, and then you can drive away in your new car!”
Being armed with the answers to some of the most common car finance queries means that you’re able to navigate the tricky waters of purchasing and payments. Don’t be afraid to reach out to your financer with any further questions about the processes, timeframes, and any other questions you might have.
