Getting that great new car with car credit

The credit crunch currently gripping Britain has seen a sudden reduction of loan availability in the UK and the situation shows no sign as yet of getting any better. Perhaps it’s time to seek some alternative ways to pay for necessary expenses — like a new car.

Unfortunately, you can never be sure when your car might break down to the extent that you’re better off just buying a new one. There are a number of reasons where a new car may be necessary for, such as an addition to the family or getting a new job where you need to travel. For victims of the credit crunch and those who toil to receive bank loans, it could be an even bigger struggle to get a loan to help you afford it.

For most people, a vehicle is the second largest investment they’ll make, following a mortgage on a home. Even used cars are expensive and not everybody has a lump of money resting in their bank account waiting for such an expense — which is why credit from a dealer or motor broker could provide an excellent alternative to an uncertain or overpriced bank loan.

So what is car credit? Well, car credit is a financial agreement between the buyer and seller that allows the buyer to repay the cost of the car by instalment over a period of time, which means that payment is made more manageable.

You can apply online, over the phone and in person with many companies, so if you really want that Nissan Primera, you could arrange to get it with relative ease. Your seller will offer you car credit based on the level of repayments you could afford, including interest and other costs associated with the finance arrangement. However, the same goes for bank loans and when these are unavailable, car credit opportunities can really prove useful.

Many people use car credit when they find it difficult to get a loan, have bad credit now or in the past, or have been refused loans previously. However, during the credit crunch, it’s already harder to get a bank loan so more people are turning to car credit as a result.

Essentially, car credit is just a loan from your seller instead of from the bank. By keeping your finances grouped in such a manner, you could find it easier to keep track of your expenses. The company you use will also be likely to communicate with you and ensure that the process is running smoothly.

It’s important to do your research and shop around while looking for car credit companies, but you can rest assured that many will say ‘yes’ when you apply and in many cases you will get approved car credit within hours of your application.

From there, it’s just a case of choosing your dream car and then driving away.

Paul McIndoe writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.