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What You Need To Know About Car Finance In UK

What You Need To Know About Car Finance In UK
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What You Need To Know About Car Finance In UK

With the job market gaining strength recently and consumers making major purchases like homes and cars, credit scores are improving for some who can pay off bills and debts owed during the market collapse. But for many others who are still struggling to make ends meet, their credit scores are still suffering due to late payments and slow payments during hard times. Car finance has seen an uptick in subprime car finance/loan – those for consumers who have less than credit but still need a car for work to make a living.

Subprime car finance/loan by definition are a type of loan offered at a rate above average interest rates to individuals who do not qualify for conventional car finance/loan. For instance, if a car buyer has a great credit scores of around 750 – 800, he or she can get financing with an interest rate of around 4% APR, depending on their Bank/Lenders. However, if their number is below 700, they may qualify for a subprime car finance/loan at a higher interest rate. The good side of this car finance option is that the buyer still gets a car and is able to get to work and have a vehicle they can depend upon on a daily bases. The bad side is that this higher rate means they’ll be paying more interest on the money they borrowed but not getting any more value for the money.

Subprime car finance/loan, like conventional ones, are good in that once they are paid off the credit scores improves. A loan paid off with payments being made on time and early repayments, if possible, are always a positive in financial credit agreements and this will improve one’s credit scores. But the catch 22 is, if a person uses this type of car finance/loan, they’re probably already struggling with their financial situation, so they may likely miss repayments, make late payments or go into default. So, with this in mind, subprime lending as a car finance option is like any other, it has to be paid in a timely manner and paid back according to the contract in order to be a smart financial decision.

The idea of having money to make money still rings true as it always has – people have to have money in order to purchase the basic necessities in order to go to work and make money to pay for Cars, homes, clothing, food, daycare etc, these are all things that are required for people who work for a living. And they are all growing more and more costly each year. People can hardly ever afford to pay cash for a house or car- finance becomes inevitable for some, but the money still has to be there to pay off the car finance/loan. A subprime car finance/loan may not sound ideal for those with a tight budget, but for some it’s the difference between having a dependable way to work to earn a living and support a family in today’s society.

Here at U Car Finance, we are dedicated to giving our customers the best service possible. We have a large panel of lenders, with over 100 financial products and services to suit your needs, Our aim is to help you find low rate vehicle finance for You.

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. We welcome individuals with Good Credit, Bad Credit, Poor Credit or no Credit at all; we consider all our applicants on an individual case by case basis, this way we can take all small personal factors into consideration when making a decision.

You can call 0330 445 5505 and talk to one of our friendly members of staff who will help you with any queries.

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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 223 4384
Email : info@ucarfinance.co.uk

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