A lot of ads seem to have been springing up recently for guaranteed car finance for bad credit. This seems a tempting proposition if you have bad credit and urgently need a vehicle. But is it too good to be true? How does it work? And is there a catch?
The truth is there is no such thing as “guaranteed acceptance car finance”. It is up to the individual lenders to decide who to lend to. Some lenders are more likely to consider adverse credit than others. “Guaranteed Finance” advertisers usually have a panel of lenders who are more likely to accept people with bad credit or who fail the usual credit checks. If you are self-employed for example they may be more likely to be able to find a deal for you. Some may require a guarantor or a hefty deposit though, or require you to purchase a car from a named dealer.
Avoid Hefty Fees
Some advertisers even charge a fee for trying to find you credit. We have seen fees of up to £299 upfront which although backed by a “money back guarantee” make it quite difficult to actually claim your money back. You might find the offer to be at significantly higher rates to off set the risk or be asked to find a guarantor. Always be sure you know exactly what you are getting into a read the small print carefully before you sign any paperwork
Do You Really Need A Vehicle?
If you need a vehicle fast and have bad credit, consider if there are alternative ways to finance your purchase. You can purchase a cheap used car privately for significantly less than dealership prices although consider that there are no come-backs against private sellers if anything does go wrong with the vehicle.
Do you even need a vehicle at all? Car sharing and lift sharing services are becoming increasingly popular and if you only need a vehicle occasionally will help you to save the money you would spend on insuring, maintaining and running your own car. The Enterprise Car Club offers car hire on an hourly or daily basis and LiftShare helps you to save money and the planet by sharing your journey with others