If you ever see an offer of “Guaranteed Approval on Car Loan Applications”, take that with a pinch of salt (or other seasoning of your choice). Especially if it’s a dealership. Why? Because only lenders can make promises like that. Dealers who use lenders to approve applications simply can’t guarantee that loans will be approved. It’s not the way it works.
To get a proper deal, you need to secure car finance with a legitimate motor finance specialist, who can honestly answer any questions you might have concerning how they operate. just in case something goes wrong. If, at the outset, a dealer lies about guaranteeing every application, what else can they tell fibs about, after all? How can you 100 per cent trust them after that? It’s not exactly a great start, is it!? Of course there are loads of people having their applications approved – but not because the approval was a dead cert!
Woeful mismanagement of peoples’ expectations
“When I saw ‘Guaranteed Approval on All Car Loans’ advertised by some dealers on the Internet and in the local paper, I almost jumped for joy,” explains Michael in Rickmansworth (Herts.) “I’ve got a really low credit rating, and I thought I didn’t have a hope in hell of securing car finance on a new car. The word ‘Guaranteed’ jumped out at me. I soon learned the truth about such outrageous claims, however, which left me disappointed and actually feeling not a little bit conned.”
Yes, it’s dreadfully unfair to get people’s hopes up like that, by using an enticement ploy that is actually very powerful. We know that people with bad credit flock to such dealerships in droves, having had their hopes raised. To them, the prospect of soon being on the road with a new set of wheels feels very much within their grasp at last. If you’ve got bad credit, you’ll already be coming at the car finance process feeling like your application is weak, and could be refused. If you’re desperate to get a car as soon as possible (to improve your prospects of finding work, e.g.), then the last thing you need on top of your existing stress is to be misled by a dealer’s scandalous baiting tactic, isn’t it?
A pack of lies
“I remember being thrilled to find the car of my dreams just sitting there at a dealership last year,” explains Michelle in Chandler’s Cross. “And because the dealership claimed that all applications for finance were guaranteed to win approval from lenders, even if the borrower had bad credit, I got it into my head that the car I’d seen and fallen in love with was as good as mine! Needless to say I was devastated when it didn’t work out. The ‘guaranteed’ bit by the dealership turned out to be a pack of lies. I was furious with them. Thank goodness for the company I eventually found – a genuine, well-established car loan specialist with a straightforward way of working with applicants.”
Working in your best interests
If we use ourselves as an example, at Albion Car Finance, the only thing we can guarantee is that we’ll do our very best to secure you the right car finance and a monthly repayment plan that you feel comfortable with and are confident of being able to afford over an agreed period. Looking at it realistically we find that three-year deals are usually advisable to avoid costly interest payments over several years.
After you’ve made your application, it’s all in the hands of the panel of lenders that we use. To ensure a broad reach, we have access to several non-standard lenders in the industry, who are experienced in handling applications from people with not so standard credit histories. It’s a good match. Meaning that despite having a poor credit record, your chances of getting approval for the car you want are markedly increased if you’re talking to people who understand the score.
Automatic rejection for having bad credit. Definitely not the case.
Having bad credit doesn’t mean that your application will be automatically rejected. Not at all. It will always be given careful consideration. Credit rating checks will be carried out, of course, and possibly other checks. But the process shouldn’t take too long. In fact, most applications are dealt with incredibly quickly, so if your application is approved, you’ll be sorted with the right car, on the right loan terms, arranged by car finance people who believe in doing things right, or not doing them at all.