Question 1

How do I know if I will be accepted for car finance?

Accepted Answer

There's no surefire way to know if you'll be approved for a car loan, but you can improve your chances. Keep a good credit score, be honest about your information, and pick a loan that fits your budget.

Our easy car finance calculator is another great way to see if you’ll be accepted. It also shows how much you could borrow and what your monthly payments might be.

Question 2

Do all car finance companies ask for bank statements?

Accepted Answer

While not all car finance companies ask for bank statements, many do. Bank statements show how you manage your money – like how much you earn, what you spend it on, and if you already owe money to others.

Sharing your bank statements helps the loan company understand your finances better. It can therefore make your loan application stronger.

Question 3

How does a car finance company check employment?

Accepted Answer

Car finance companies usually make sure you have a job by directly contacting your employer or asking for papers like payslips or work contracts. This helps them see if your income is steady and reliable, which is important for deciding if they'll give you a car loan.

Question 4

Do finance companies check payslips?

Accepted Answer

Yes, finance companies often check payslips as part of the application process for car finance. Payslips provide proof of your income and help lenders verify that you have a steady source of funds to make your car loan payments.

Question 5

Do car finance companies contact your employer?

Accepted Answer

Yes, some car finance companies call or email your boss to check if you work where you say you do. They want to make sure you have a job and earn enough money to pay back the loan for the car.

This is just to make sure you're reliable and can afford the payments. So, it's pretty common for them to get in touch with your employer during the application process.

Question 6

How much do I need to earn to get car finance?

Accepted Answer

The amount you need to earn for car finance depends on many factors. These include the lender's requirements, the price of the car you want to finance, your credit history, and your finances.

Lenders look at your debt-to-income ratio, which is the percentage of your income that goes toward paying debts.

A steady and sufficient income is generally necessary to show your ability to repay the loan. Additionally, lenders may also look at your credit score, job stability, and current debts when deciding if you can get car finance. That’s why they ask to see proof of employment and payslips.

Question 7

Do you need payslips for car finance?

Accepted Answer

Yes, showing recent payslips is necessary for car finance. Payslips show your income and allow finance companies to assess whether you can meet the monthly repayments. You should ensure that the payslips you give are recent and accurately reflect your current earnings.

Question 8

What details do you need to apply for car finance?

Accepted Answer

When you're applying for car finance, you'll need to gather some personal information to show the lender that you're a reliable borrower. Here's a basic list of what you might need to provide:

Your full name

Your date of birth

Proof of address

Proof of income

Bank details

Driving licence

Remember, the exact details you need can vary depending on the lender and your specific situation. It's a good idea to check with the lender beforehand to make sure you have everything they need.

Question 9

What paperwork do you need to prepare for car finance?

Accepted Answer

Whether you live in England, Wales, Scotland, or Northern Ireland, the documents that you’ll need to secure car finance will be broadly the same.

Each lender has their own requirements but, in general, the paperwork they will need to see is:

A picture of your driving licence – You’ll be asked to upload a picture of your licence after you’ve applied online. Make sure that your picture and all the details are clear and easy to read before you share your shot.

Payslips or bank statements – Lenders will want to know your employment status and how much you typically earn each month. This helps them to carry out affordability checks to make sure you’re not applying for a loan that could cause your finances to stretch too thin.

Proof of address – A lender will usually ask for a copy of something like a utility bill or your most recent council tax statement as proof of where you live. The lenders we work with ask that you have at least three years’ address history in the UK.

These documents will be requested no matter whether your credit is excellent, fair, or in need of some work. In fact, we work with lenders that can help people find bad credit car finance.

What documents do I need for car finance?