The Car Finance Approval Process

car finance process characters

Rates from 29.7% APR
40.9% Representative APR -
Subject to status and affordability

Here at Go Car Credit, we understand that one of the scariest things about car finance is getting that all-important approval for credit. We specialise in bad credit car finance and helping people who may have been declined by other lenders. So if that’s you, you are in the right place, and we could help you get finance for that new car you’ve had your eye on.

All you have to do is complete our car finance application which usually takes around 2 minutes. Once we have received your application, we do some initial checks and then it is sent to our underwriting team for review. Our underwriting team will carry out a soft credit search. This soft credit search does not impact your credit file and we don’t carry out a hard search until you have said to us you want to proceed with the car finance agreement.

Representative example – Total amount of credit £9,000, annual interest rate 21.75% (fixed), charge for credit £10,092.32 (£9,787.32 interest, £295 admin fee and £10 option to purchase fee), total amount payable £19,092.32. Loan term of 60 monthly instalments, 59 payments of £318.04 and 1 final instalment of £328.04. 40.9% Representative APR – Subject to status and affordability

How Long Does Car Finance Approval Take?

We aim to have an initial decision back within 15 minutes, you may think this seems quite slow but we review the majority of applications manually so we can understand our customer’s situation. Mainstream lenders usually have an instant decision within seconds regarding initial approval but, as we specialise in bad credit car finance, we have a team of underwriters that are manually reviewing applications for approval. Our underwriters will be reviewing extenuating circumstances and looking at the overall picture to make a decision rather than just using a computer score that won’t take individual circumstances into consideration.

The Car Finance Process

Here at Go Car Credit, we make sure the application process is as clear and simple as possible. The way our finance works is by reviewing your application within our underwriting department, making sure your individual circumstances are factored into the decision. At this point, you may be offered a pre-approval on the information you’ve provided.

We’ll then request certain documents to support your application and determine whether the credit you’ve applied for is suitable. The next step is to find a car that suits your needs best, our team will also offer help to find you the best vehicle.

As soon as all paperwork is complete you are ready to go, potentially within a few hours. Being a direct lender, we are able to offer a quick approval based on your personal circumstances without the need for a deposit or guarantor.


What Checks Are Included In A Car Finance Application?

Using your application, our underwriting team will review the information to make sure you meet our criteria and make an initial decision. They’ll then go on to review areas including:

  • Credit history
  • Affordability and income
  • Your chosen vehicle meets our lending criteria
  • Vehicle valuation
  • Any existing finance on your new car
  • Length of agreement

What Can Delay A Car Finance Application?

To make sure your car finance application goes as smoothly and quickly as possible, there are a few areas we recommend paying close attention to. These include:

  • Ensure all details are correct such as name and address
  • Make sure all application details are up to date
  • Have accurate proof of income to hand such as pay slips or bank statements

We also recommend thinking carefully about the car that you’re looking for and that it suits your circumstances for the length of the loan term. For example, if you are planning on starting a family in the near future, you may want to factor this into your vehicle choice.


Why Would I Get Rejected For Car Finance?

Being rejected for car finance can put a real obstacle in the way of your life, particularly if you rely on a vehicle. Because we review all of our applications on a case-by-case basis, the reasons for car finance being rejected can vary.

These can include:

  • A recent or too many financial defaults
  • Missed payments on existing credit commitments
  • Lack of job or income stability
  • Affordability of loan repayments
  • Mistakes on your existing credit report

Ensuring all of the above are addressed will reduce the risk of being rejected for car finance.

How To Improve The Chances Of Car Finance Approval

  • Make sure you don’t have any recent defaults and look to make payments on time so you can rebuild your credit score.
  • Ensure your credit profile is up to date and all information is correct.
  • Make sure you are registered on the electoral roll. It shows that you live at your address which is seen as a positive.
  • Save for a car finance deposit if possible as lenders may look at this more favourably than not having one.


Can A Car Loan Be Denied After Approval?

An application may be declined after initial approval due to not being able to provide supporting documentation such as valid ID, pay slips or bank statements. Other supporting documentation could be in the form of written consent from your IVA (Individual Voluntary Arrangements) company or if you receive benefits, we may require proof of these. The type of supporting documentation you may be required to provide will be different depending on your circumstances.

Learn more about being refused car finance.

Will A Deposit Improve My Chances Of Approval?

A deposit can improve your chances of approval. If you are willing to put down a large deposit for your vehicle, then it could demonstrate your commitment to repaying your loan and owning the vehicle outright. A deposit does not guarantee approval and is not mandatory.

However, if you choose to apply for car finance with no deposit, we can still review your application with us.

What Happens If Car Finance Is Not Approved?

We will let you know if you have not been approved for finance. We would suggest if this were the case that you do not make another application for finance for at least 3 months. Too many declined applications for finance could be seen negatively by lenders.

Will A CCJ Stop Me Getting Car Finance?

No not necessarily. We do consider people with CCJ’s. We will look at your current financial circumstances as a whole and review these to make our decision.

Does Pre-Approval Guarantee A Car Loan?

Not necessarily as we do not offer guaranteed car finance. Once you have had an initial decision you will be required to find a vehicle that fits our criteria and provide supporting documentation such as ID, pay slips and bank statements if required.

Why Is My Car Finance Approval Taking Longer Than Expected?

Approval can take longer because we are specialists in bad credit car finance, the process is very manual as we have a team of underwriters who review each application. If your application for finance is quite complex and there is a lot of information to review, then it may take longer to get approval for finance. Alternatively, if you applied during our closed hours then it will be reviewed once we open again so this may delay getting an initial decision for you.

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