Searching for a car loan in London or the surrounding area? Wheelie Good Finance are here to help you find your dream car!
Looking for Car Finance in London?
Car finance can be a great way to spread the cost of a vehicle. Not everyone is able to save up for a new set of wheels, and for some people, having a vehicle is a necessity, whether it’s for work or lifestyle. Even a downpayment can be challenging to save up for, so you might be looking into no deposit car finance.
Here at Wheelie Good Finance, we work with a range of lenders who can help you find a car finance solution in London that meets your needs and requirements. Even if you have a bad credit history, we’ll do our best to match you with a suitable loan provider.
Vehicle Finance Options Available in London
When it comes to vehicle finance options, there are two main types to choose from. These are Hire Purchase (HP) and Personal Contract Purchase (PCP) deals. Both are secured loans, which means that while they’re typically more accessible, if you’re unable to keep to the repayments, there is a risk of your car being repossessed.
In terms of a hire purchase loan, this is similar to the majority of other forms of secured finance. You’d normally make an initial deposit, and then monthly instalments until you have paid off the outstanding balance. At this point, you’d own the vehicle outright. It should be noted that HP deals generally have higher monthly payments than PCP agreements, as you’re paying for the total cost of the car. With PCP, you’re paying towards the depreciation of the vehicle.
Depreciation is the difference between the initial purchase price at the start of your contract, and what the car is estimated to be worth at the end of your term. So if you purchased a vehicle for £7,000, and its approximate value when your agreement finishes is £3,000, you’d be paying £4,000 in depreciation, as well as any applied interest.
When your PCP contract ends, you can then decide your next course of action. You can choose to make what is referred to as a ‘balloon payment’, which is what the car was estimated to be worth at this point. In the example above, this would be a payment of £3,000. Alternatively, you can enter into a new agreement, or hand back the car and walk away.
London Car Finance Eligibility
If you’re looking to take out car finance in London, the key eligibility criteria include living in the UK, having a full or provisional driving licence, and being aged 21 or above. Most lenders also require you to be earning at least £1,000 a month.
Some borrowers are concerned about bad credit when it comes to vehicle finance, but having a low credit score doesn’t necessarily mean that you won’t be eligible for a car loan. There are a number of specialist bad credit lenders who will consider your application, even if you have a less than perfect credit history.
Many loan providers understand that your credit score won’t always be a true reflection of how you manage your finances. As information stays on your credit file for around six years, a late or missed payment from years ago could be impacting your credit rating now. That’s why lenders will also look at things like your current income and expenditure when making a loan decision, not just your credit history.
Cars for Sale in London
There are a huge number of dealerships in London, not to mention private car sellers. So you’re bound to find an option that you like! Most cars for sale are also listed online too, so you don’t need to look at any you have no interest in buying. You can pick a few that meet your criteria, then arrange a viewing and test drive.
And don’t forget that you don’t have to buy a car locally in London. It can be a cheaper option to buy a vehicle a little bit further out, even with the cost of fuel to get there. Some dealers may even transport the vehicle to you - you’d need to ask them if they offer this option.
Should you decide that you do want to purchase a vehicle from a local dealer, a few car dealerships in the London area include:
Auto World Norbury Car Sales
1156 London Road, Norbury, London SW16 4DS
Cazoo Customer Centre Wembley
North Circular Road, London NW10 7GA
Hamiltons Used Car Sales
151 Palace Road, London SW2 3LE
London LHD Centre
Chelsea Harbour Drive, Lots Road, London SW10 0XG
Marylebone Car Centre
62a Balcombe Street, London NW1 6NE
Car Finance Near Me
If you’re looking into vehicle finance, there’s a good chance that you’re searching for local car finance deals. But, unlike with the dealership or car seller, it doesn’t really matter where your lender is based. Most car finance providers operate 100% online, so you don’t need to worry about finding a local lender.
How Can Wheelie Good Finance Help?
Here at Wheelie Good Finance, we can help you find a suitable lender - simply let us know how much you’re looking to borrow, and provide a few details about your situation, and we will do our best to find a lender in our panel who meets your needs. We work with a wide range of lenders, so you may be able to improve your chances of loan approval by applying through a broker service.
It’s also worth noting that making an application with Wheelie Good Finance won’t have an impact on your credit score. We only carry out soft credit checks when you apply, which aren’t reported on your credit file. Should your application be approved though, the lender may choose to undertake a full credit check.
Our loan application shouldn’t take more than a few minutes to complete, and best of all, there are no hidden fees or charges! So what are you waiting for - get started today!