Guaranteed car finance? What’s the real story?

Can you get a car loan if you’re unemployed and on Benefits? Possibly. Having a car could open up job possibilities for you – giving you more scope, greater access to a wider geographical area when looking for work…

lady at the steering wheel

Some car finance companies across the UK work really hard to help those struggling on a low income to get on the road with a set of wheels, knowing how much that could help them. Repayments are set at manageable amounts, over a sensible period (rather than a long-term deal, where the interest can prove excessively costly).

Sadly, some car loan companies are less than truthful when it comes to the promises they make to people desperate to become mobile. Claiming that “All applications are GUARANTEED to win approval from lenders” is one such promise that any broker would find hard to keep, every time. That’s because it isn’t their promise to make!

Why the best car finance policy is HONESTY

“When I saw all the ads online offering supposed ‘Guaranteed Approval on Car Finance’, and all that rubbish, I was convinced that getting a car was a given, to be honest,” says Keri in Chorleywood (Herts.). “The reality of securing car leasing help as an applicant with a low credit rating score was far different to that, I’m afraid. It’s awful, really, isn’t it? To get people’s hopes up like that, knowing full well that you can’t guarantee anyone approval for their car finance application until you’ve got the thumbs up from the lender(s) involved? I’m just relieved to have found Albion Car Finance, who always told me the truth and got me on the road in no time!”

You need a broker who gives it to you straight

When seeking to secure a car loan, you need finance brokers to be straightforward with you when it comes to explaining the true extent of the cost, as well as the consequences of failing to make the required repayments over the agreed loan period. If the broker has already told you a lie – by assuring you that your application will be “Guaranteed” to be approved by lender – they’ve actually broken the law; so how can you trust them to provide you with the most suitable finance policy to meet your particular situation/circumstances?

More about what the law says

The thing to always remember about car finance brokers and dealers who promise “Car Finance Guaranteed” or even “Guaranteed Approvel” is that they’re making promises about someone else’s money. Also, in compliance with the Consumer Credit (Advertisement) Regulations 2010, you can’t guarantee anything as a car finance broker or dealer unless it applies to every single person who makes an application. That simply isn’t possible, not only on the world of car financing but in myriad other industries.

Of course, all businesses need to market themselves. And, in this often overwhelming Digital Age, people are bombarded with more marketing messages now than ever before. Companies of all kinds face fierce competition when it comes to winning business. But that doesn’t mean you can say anything you want, to entice prospects.