People know a car can be used flexibly. Many of them cannot explore this because they don’t own a car.

They can, though, with the right financial product. In most cases, a car is still an expensive deal. Speaking of the fuel-run, traditional cars, they are costly. Speaking of the electric and hybrid vehicles, they are even costlier.

So, is car finance a solution for you? The answer to that lies in whether or not you can afford it and if it’s right to do so even if you can. 

We can find answers to this question in this post. 

Guaranteed Car Finance: A Simplified Definition 

When you think of a financial product for buying your car, you think generally of loans. Car finance, in this regard, is an umbrella term that brings in all the loan products and credit options made available to an individual or business as a means of assistance for owning a car.  

But this definition sounds too formal. In the simplified form, car finance means borrowing money from a recognised lender to buy your car because you cannot bear the costs on the personal front. 

You look for car finance for a variety of reasons. As mentioned, you might want to get it because your bank balance is low. Or you may want to find it because you want to smartly manage money and get the best loan product available. 

Please note that guaranteed car finance options are not all 100% guaranteed. However, they are 99% guaranteed straight out of the box. Your income statement and overall financial status get the loan approved, which may translate to making the loan 100% guaranteed. Your valid income also makes guaranteed car finance with no credit check an easily available loan product. If you don’t believe it, try checking this product from the direct lenders.  

What are the rules for guaranteed car finance?

Guaranteed car finance is not a scary product. However, it has its rules and regulations. 

• The car finance is usually secured 
• Due to being a secured loan, you have to use the car (new or old) as collateral for the loan
• You have to pay a down payment, which is a percentage of the asset, to get the full amount as a loan
• If you fail to repay the car loan, then your lender may take hold of the asset
• You can get back your assets when you repay the loan in full

You see that these are essential requirements of a car loan. You cannot change them. However, these very factors can make you a responsible borrower, too.  

However, you are supposed to ensure you are not wondering or venturing into the loan product you cannot manage borrowing.

Benefits of Guaranteed Car Loans

The guaranteed car loan is a product coming under officially recognised guaranteed car finance products. You can do a lot with it if you are smart enough to manage it. 

To understand this product more, the best practice is to borrow it for real and use it. However, we can still get a sneak peek about it from the benefits it offers us:

• Car finance options are increasingly favourable to borrowers from all walks of life because of their flexible repayment packages. 
• Sharing only your valid income proofs, you are able to get 100% guaranteed car finance with no credit check  Direct lenders can help you the best with these products.
• Guaranteed car finance approval documents can help you book your car effectively.
• Since guaranteed car loans are approved within minutes from a direct lender, you may want to consider this loan product as a quick credit option. 

How to Understand If a Guaranteed Car Loan Is for Me?

We might be worried about borrowing the money because of our poor finances. Sometimes, not being sure about the kind of car we want to buy leads us to the same sort of confusion. 

You might need to face yourself and your financial conditions first to fix this. Check if you can manage taking out a loan at this time, provided you already have the finances. Learn if using a bit of your savings in conjunction with your income statement to take out a larger loan is okay. 

Yes, it does sound a little confusing. Instead, we can read the questions mentioned below and answer them as honestly as possible:

• Do I Need to Buy a Car Now?

This is one of the most critical questions for a car loan, and it seems a little odd. But it is an important question that tells us a lot about the car loan we need.

We have to understand why buying a car is essential for us. Do we need a car because our friends have one and we feel sorry we don’t have one? Or will you use your car for extra projects like drop shipping or getting it into the online cab business?

You see, both questions have separate meanings. You can guess the first question is silly, whereas the second question asks the real reason you buy a car. So, face yourself and discover what motivates you to buy a car. If it is a logical motivation, then you may want to go. 

• What Vehicle Am I Going to Buy

The electric vehicle you have spotted in a local car dealer’s showroom and the online hybrid vehicle have different price tags.  

Okay! That might not be the best way to describe the fluctuating price rates of the cars. But it gets the job done to tell you the difference in price points of different cars.

When you are sure of the car you want to purchase, you can understand where to come to terms with the vehicle’s fixed price and ask your lender for a quote.  

This is why you should discuss terms with your car dealer and find out almost everything about the car’s finalised price, including the vehicle’s:

• Model
• Battery or Engine Version
• Mileage 
• Accessory costs 
• Insurance 

• Do I Earn Enough Money to Repay My Car Loan Easily?

This is probably the most important question we have all been waiting for. Most car loans from different types of lenders will ask you about various aspects of car loans, including your credit score. 

However, you can get car loans for bad credit from a direct lender company using nothing but your income details. 

All you need to do here is share your income details with your lender company, which will test your loan affordability factor, i.e. if you can repay the instalments using your income. Then, the loan is approved.

You should take a step forward to find your loan affordability yourself. 

Simply use a loan calculator. 

Find out the multiple repayment packages (which are an advantage for you when borrowing higher amounts of money) your lender offers. 

Then, calculate your loan repayment amounts using each package to find out if you can afford the loan you want to borrow. 

Lower the loan amount if your income cannot manage a higher loan amount. You may also choose an alternative vehicle or manage personal finances to borrow meaningfully.   

To Conclude

Hope these questions helped you understand if you are going to need the assistance of guaranteed car finance. If you still have questions though, you can always get in touch with your lender organisation and learn about a specific product in detail.