Specialist car finance is a sub-prime vehicle loan, that could be given to people who may be seen as too high risk to be approved for credit by a prime lender, such as a bank. If you have been refused car finance from a prime lender that offers low APR finance products, you may find it easier to get approved by a lender who can offer you a specialist car loan.
Who is a specialist car loan for?
A specialist car loan could be an option for people who are having difficulty getting their finance application approved for loans with a low APR, and wish to increase their credit worthiness.
You may have to pay a higher APR for a specialist car loan, but this could lead to more access to lower APR finance in the future.
How does specialist car finance work?
Specialist car finance lenders usually have broader criteria than prime lenders, which allows them to make certain exceptions that a prime lender cannot afford to risk, when assessing whether to lend you credit.
A specialist lender may require you to have a payment reminder system discreetly installed in the car during your car finance agreement.
This process is also known as black box car finance.
Do specialist car credit lenders perform a credit check?
Yes, a credit check is carried out for a variety of reasons:
- To make sure you are not taking on too many credit commitments at the same time
- To see if you are likely to make the repayments based on previous repayment of other loans
Is a specialist car loan for a poor credit history?
You may have a bad credit history due to defaults, county court judgements, missed payments or even a discharged bankruptcy.
You could get car finance with bad credit by applying with a specialist car loan lender.
Is specialist car finance for a low credit score?
You could have a low credit score for a variety of reasons, some include:
- Not being on the electoral register
- Unused credit cards
- Errors on your credit report
- No credit history at all
While a specialist lender will see your credit score, they may have their own way of scoring, which is based on your credit history but with certain exceptions, if their lending criteria will allow it.
Is specialist car finance for people on benefits?
If you wish to include certain benefits income in your car loan application, a prime lender may not allow this due to a strict income criteria.
If their custom criteria will allow it, a specialist lender may be able to include some of your benefits income when assessing your affordability.
Is specialist car credit for people with a low income?
Specialist lenders basic criteria usually includes a minimum income to be considered for a car loan.
If you do find your income is too low, you could have the option to add a joint applicant onto your application to bring the income amount to the minimum level.
Do I have to pay a deposit to get a specialist car loan?
No deposit is needed for a specialist car loan with Go Car Credit, however offering a deposit will, of course, reduce the amount you borrow.
Do I need a guarantor for a specialist car loan?
If you choose Go Car Credit as your specialist car finance lender, you will not need a guarantor for our hire purchase agreement.