Explained: What is Car Finance? | Best Car Finance Company in UK
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Car Finance Explained

Car Finance Explained
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Car Finance Explained

Instead of having to save up for years to buy the car of your dreams, Car Finance allows you purchase a vehicle now by paying for the vehicle you want in monthly installments. With our three steps process Apply, Get Approved, Sign & Collect! You can receive your new car within 48 hours; it’s that simple!

If you’re new to car finance, you might not know exactly how it works. Here at U Car Finance, we have made getting car finance simple, using our three step process, and you can be approved for car finance within minutes. Our aim is to help you secure low rate vehicle finance. We aim to get you the most competitive rates for your Car Finance, relative to your personal circumstances from our carefully selected panel of lenders. Our Finance Calculator can give an idea on the monthly repayments based on your credit rating. You can also read our credit profile example to get a better idea to match your own credit profile.

What Options Do You Have?

There are various types of car finance agreements you can apply for, here at U Car Finance, we have over 100 financial products to suit your car finance needs. We welcome individuals with Good Credit, Bad Credit, Poor Credit or No Credit at all; we consider all our applicants on a particular case by case basis, this way we are able to take all small personal factors into consideration when making a decision. Here are some brief descriptions of the finance agreements:

Hire Purchase (HP)

Hire Purchase (HP) agreement allows an individual to purchase a specific vehicle with finance. The finance company usually own the vehicle until the final repayment has been made. With Hire Purchase agreements once you have been approved for a set loan amount, you are free to choose any vehicle of your choice from any reputable UK dealers. We can finance a wide range of vehicles and, in most cases, no deposit is required. The loan amount is usually repaid in fixed monthly repayments, over a pre-agreed period (typically 12 or 60 months).  It is important to remember the loan is secured against the vehicle while you make the repayments, (this means the lender owns your vehicle until you cleared the loan amount) once the loan amount has been cleared, the ownership of the vehicle will be passed over to you from your loan lender. Here at U Car Finance, we have made getting car finance simple, using our three step process, and you can be approved for car finance within minutes. Our aim is to help you secure low rate vehicle finance. We aim to get you the most competitive rates for your car finance, relative to your personal circumstances from our carefully selected panel of lenders; we have over 100 of financial products to suit your car finance needs.

Use Our Finance Calculator to see what you could Borrow Today; our finance calculator can give an idea on the monthly payments based on your credit rating.

Car Finance Option Hire Purchase (HP)

Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) agreements allow you to defer ownership of the vehicle until you reach the end of the contract. This means the vehicle is considered as hired or leased until you reach the end of your contract. This makes PCP agreements similar to hire purchase. However with PCP agreements, the monthly repayments are usually lower because you only pay for depreciation value of the vehicle, this calculated by the value of the vehicle at the beginning of the contract minus its value at the end of the contract, this is commonly known as “agreed residual value.”

Once the contract has ended, you can either return the vehicle back to the proprietor or make a “balloon payment” to the vehicles proprietor of the “agreed residual value” to buy the vehicle outright. This is usually referred to as a “balloon payment,” or you can Part Exchange your vehicle.

Car Finance Option Personal Contract Purchase (PCP)

Personal Contract Hire (PCH)

Personal Contract Hire (PCH), commonly known as car leasing, is like long-term car rental. You sign an agreement with a leasing company that lets you drive a brand new vehicle for an agreed period with a pre-agreed number of miles per annum for a fixed price per month. This fee includes an initial payment which is non-refundable and regular monthly repayments for the duration of your agreement. At no point are you the official owner of the vehicle and at the end of your agreement, you simply return the car.

Car Finance Option Personal Contract Hire (PCH)

Personal Loan

A Personal Loan allows you to buy any car from any reputable dealers or private buyer; Personal Loan is not secured against a vehicle, this means the loan will rely more heavily on your credit history, Income, etc. Here at U Car Finance, we have over various Personal Loan products to suit your car finance needs. U Car Finance we have made getting car finance simple, using our three-step process, you can be approved for car finance within minutes. Our aim is to help you secure low rate vehicle finance. We aim to get you the most competitive rates for your car finance, relative to your personal circumstances from our carefully selected panel of lenders.

Use Our Finance Calculator to see what you could borrow today; our finance calculator can give an idea on the monthly payments based on your credit rating.

Guarantor Loan

A Guarantor Loan allows you to buy any car from any reputable dealers or private buyer. A Guarantor Loan is not secured against a vehicle. A Guarantor Loan is when a third party – typically a family member or friend, agrees to repay any of the finance in case you fail to make the loan/finance repayment. A guarantor will take final responsibility for a loan/ finance. One usually pays the lender the loan repayments, but if the applicant does not make the repayment, the vendor (lender) can ask the guarantor to make the repayment on the applicant’s behalf.

Guarantor Loan is a great way to boost your chances of getting approved for Car Finance. Guarantor Loan finance can be helpful for a young person who has a questionable Credit History, has No Credit History, is self-employed, works with an agency, does commission based work or claims benefits, etc. (inconsistent income).

Getting a Guarantor Loan is a helpful way to keep up your repayments; it will also help you improve your credit score as long as the repayments are made on time. You will have also a better chance of getting approved for a single applicant loan next time.

Here at U Car Finance, we have we have over 100 financial products to suit your car finance needs. Use our finance calculator to see what you could Borrow Today; our finance calculator can give an idea on the monthly payments based on your credit rating.

How It Works

Step 1: Click and Apply

Complete our simple online application; you will usually need five minutes to do this. Once you have completed the Application Form, we will process your application. One of our experts will contact you as soon as we have made a decision and discuss your options.

Step 2: Choose a car

Once you have made a decision on your finance option, you can choose a vehicle from any reputable UK Dealer. We will then contact the dealer and arrange all the relevant checks so that you can finance the vehicle of your choice.

Step 3: Sign & Collect

When everything has been arranged, we will process all the relevant paperwork and notify you. All you have to do is sign the agreement, and you can drive away with your new vehicle. It’s That Simple.

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U Car FInance
U Car Finance is one of the leading UK Car Finance Brokers, we are dedicated to giving our customers the best service as possible. We accept people who have been refused elsewhere, people with good credit, bad credit and people with no credit history at all.

Our Address

U Car Finance
208 Victoria Street (Ground Floor)
Oldham, OL9 0DA
United Kingdom

Opening Times
Mon-Fri: 9.00 am - 7.00 pm
Saturday: 9.00 am - 5.00 pm
Sunday: Closed

Our Contact Infomation

Contact us if you have any questions.

Click Here For Contact Form
Phone : 0330 445 5505
Email : info@ucarfinance.co.uk

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