Organising car lease can be a difficult and time-consuming task. From collecting quotes for comparison to filling out applications, there are a number of steps and hurdles in securing a car loan.
The application process for securing car finance can be a bit intimidating. So to help you along, here is some advice from Alpha Car Finance to get you into your new car faster.
Start with some research
This may not be as fun as jumping in a new car and speeding off into the sunset. But it is just as, if not more, important than choosing the make and model of your car. Read all the information available on your chosen car finance company’s website, speak with a team member and evaluate your finances. Take a look at what car finance deals are on offer and take the time to find the plan that is right for you.
There are a number of ways to secure funds for a new car. You can get a personal loan, sign up for a ‘lease to own’ contract or get a secured car loan. Each of these options are different, evaluate every one of these options before signing onto anything.
Think about what is important to you (timing, regular servicing, no penalty rates for paying out your loan early etc) and make your decision based on your unique needs.
Get Your Quotes
The next step is to get a quote from your financial provider. Alpha Car Finance has a quick and hassle-free online quote system that can give you pre-approval in just a few minutes. Compare and contrast different offerings from banks and car finance companies.
Depending on your credit rating, you may have difficulty in securing a loan from some providers. If you have any issues with that, you may want to consider Alpha’s unique Lease To Own car finance option. We will give you a second chance to secure car finance, when the banks say no.
Getting the best quote
Once you have gotten the quotes you need, you need to read over the terms and conditions carefully. There are a few important things you need to keep in mind when deciding which car finance quote you are going to choose.
- Interest Rate
- Upfront costs
- Fees and charges
- Retained interest and payout penalties
- Monthly or weekly repayments
- Car servicing
Submitting your application
Now that you have decided on a deal and a provider, it is time to submit an application. Alpha Car Finance’s application process can be done easily online..
“There is a very quick 60 seconds online preapproval form on the homepage of our website. Once this is completed and approved you will be invited to complete a more detailed application that will be used to assess your formal approval,” said Scott Stratton, Alpha Car Finance Manger
Most companies allow customers to submit an application for pre-approval online or over the phone. During this application, it is standard procedure to ask you about some personal details such as your assets, employment details and contact information.
Once you have received pre-approval you will usually have to provide the car finance company with supporting documents for your application. The documents required vary slightly depending on whom you are lending with. However, generally they will require proof of identity in the form of a passport or drivers license, a pay slip or tax return and privacy consent forms.
As Alpha Car Finance Manger Scott Stratton explained,
“The whole process can take less than 24 business hours from application to approval once a completed application has been received. A completed application includes paperwork such as drivers license, payslip and any other supporting documentation.”
Once you have got everything submitted and supplied the appropriate documentation, the lender will then be able to determine if they can approve your application for car finance.
They will look your ability to repay the loan within the agreed term. Once you have been approved, you and your car finance provider will have to sign off on the last of the paperwork. The financier will then either provide you or the car dealer with the funds, leaving you to drive away in your new car.
Most car finance providers will also evaluate your previous finance loans and credit history. Alpha Car Finance is different because we offer second-chance finance options for those with credit problems. So if you have tried for, and been denied, car finance it doesn’t necessarily have to be the end.
“We look at their future and ability to pay, rather than focus on their past. We also offer very late model cars with some even still covered by the original new car warranty,” explained Scott Stratton.
"For example, I just approved car finance for family that needed a larger car, with kids growing up, who had some previous defaults with a telecommunications company."
And there you have it. That is the basics of applying for car finance. If you have any other questions or issues, feel free to contact the team here at Alpha.