Did you ever visit a dealer to purchase a vehicle and been told that they cannot offer you finance anymore? You're possibly not alone. From the month of April, there have been modifications to the licences which dealer-ships require in order to offer finance, hence you might find that your selected dealership cannot finance your vehicle anymore.
Formerly, any organisation involved in lending sum of any type (not only vehicle loan) was under the control of the office of Fair-Trading. But now, they are under the FCA who have bought new changes and rules to the licences which firms require.
In the long-term, this can be a good thing as the FCA are putting in place additional guidelines and rules for ensuring that everybody involved in lending treats consumers fairly & also the information is accurate and clear.
Alternatives to financing your vehicle
Whilst dealership finance has been a popular way for paying for a used vehicle, you can also find other means of getting vehicle finance that are often easier.
Also, you are able to get more control and better chance of getting approval. Generally, a dealership simply works with a solitary lender for instance, Barclays, and the acceptance criteria for buyers might be very strict.
Like any other finance product, it is always good to take into consideration all your options for comparing services and rates. Finances are available from brokers and banks, however some companies would only lend to individuals with excellent credit score. Also, you must take into account the customer service as well as the reputation of the company if this is an importnat criteria for you.
