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Car finance provider comments on rate-driven advertising

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Car finance provider carfinance247.co.uk comments on rate-driven advertising

Car buyers looking for finance are being urged not to be blinded by low personal loan interest rates, as, says director of car finance and dealer specialists carfinance247.co.uk, Louis Rix “credit history is now more important than ever in these austere times. For many people, these rates are simply not available”.

He refers to a recent article* that claims forecourt finance is more expensive than other deals and comments: “While, as in just about every industry, you may find there are some car dealers charging you over the odds for borrowing, there are companies who do offer fair and transparent interest rates, based on an individual’s credit profile.

“This particular article says that car buyers are turning to forecourt finance despite cheaper deals being available elsewhere - and citing alternative loan interest rates of 6% ‘if you have a good credit history’. What they do not say, however, is that you’ll need to meet often very strict criteria to be eligible to apply for the lending. This may include you having an excellent credit record (as opposed to just ‘good’) and, with some lenders, being aged 30 or over (or being a homeowner)**.

“The nature of the economy at the moment means that a good proportion of consumers may not meet the criteria for these personal loans. And should they apply for finance and subsequently get refused, apart from being disappointed, the application will show up on their credit file. This could further negate them getting accepted for borrowing elsewhere, as a rejected application – or several – smacks of financial desperation, which other lenders may be keen to avoid”.

Mr. Rix adds that comparing all the car finance options available before applying for a loan naturally makes sense but that “forecourt finance, and finance arranged by specialists, should not be discounted. The interest rates often headlined by loan companies are indicative only and not every applicant is guaranteed to be offered that rate”.

Mr. Rix says that people looking for finance should not underestimate how much their credit history influences how much they can borrow and at what interest rate, adding this is why their online loan calculator gives three different approximate rates for weekly loan costs for people looking for finance, based on their credit history. “This gives them a more realistic idea of costs”.

He explains that using a service such as carfinance247, which accesses more than just one lender, means an applicant’s financial circumstances are matched to the most appropriate lender.

“This means that car buyers get the finance they need - and at a realistic price.”

Ends

*Daily Mail http://www.thisismoney.co.uk/money/cars/article-2148604/Drivers-snared-pricey-forecourt-finance-loans.html?ito=feeds-newsxml

**M&S personal loan (based on borrowing £7.500 over 5 years)

Contact:

Louis Rix, Director of carfinance247.co.uk, on: 0845 129 5526 or email: louis.rix@carfinance247.co.uk

About us:

Founded in 2000, carfinance247.co.uk is a privately owned business with offices based in central Manchester. We provide vehicle financing solutions for all financial circumstances such as hire purchase, personal contract purchase, contract hire and other leasing options. No deposit is required and we can supply and deliver any make and model of your choice.

This was posted in Bdaily's Members' News section by Stella Hulott, Speedie Consultants .