How long does car finance approval take?

Roman Danaev

21 July 2023

If you're looking to secure car finance to help you purchase your dream car, you might be wondering about the timeframe for approval. In the UK, the car finance approval process typically takes between 1 and 2 days. However, it's important to note that some car finance providers can give you a decision within 24 hours.

What happens during the decision-making process?

Once you've submitted your car finance application, the lender will carefully review it to assess your eligibility. They will consider various factors, including your credit history, income, and affordability. Additionally, they may conduct credit checks to gain a better understanding of your financial background.

To increase your chances of getting approved for car finance, it's beneficial to meet the lender's minimum income requirements and have a credit file that meets their criteria. During this process, the lender may also request additional documents from you, such as bank statements and proof of address history. These documents are necessary to verify the information provided in your car finance application.

Can I help to speed the process somehow?

While the car finance approval process is primarily dependent on the lender, there are a few steps you can take to potentially expedite the process:

  1. Budget: Before applying for car finance, it's essential to establish a clear budget. Knowing how much you can comfortably afford each month can streamline the decision-making process and demonstrate your financial preparedness.
  2. Credit rating: Maintaining a good credit rating can significantly improve your chances of approval. Timely bill payments, minimizing outstanding debts, and avoiding multiple credit applications can all contribute to a healthier credit score, making you a more attractive candidate for car finance.
  3. Documents: Being well-prepared with the necessary documents can help prevent delays in the approval process. Ensure you have all the required documentation ready, including proof of income and address history. This level of organization showcases your commitment and seriousness about the car finance agreement.

Does car finance approval take longer if you have a bad credit?

If you have a bad credit history, it's possible that the car finance approval process may take longer compared to someone with a good credit score. This is because having a poor credit rating can make it more challenging to find car finance providers willing to approve your application.

When you have bad credit, lenders may perceive you as a higher risk borrower. They may need more time to carefully assess your financial situation and evaluate the level of risk associated with approving your car finance application. Lenders might conduct a more thorough review of your credit history, income, and affordability to ensure that you can manage the car finance agreement.

Check if you are eligible with Carplus

If you're concerned about your eligibility for car finance and want to avoid any potential negative impact on your credit record, it's a good idea to check if you meet the application requirements before making an application. Different car finance providers have varying lending criteria, such as credit score requirements or minimum income thresholds. By reviewing the conditions beforehand, you can ensure that you're applying to the right provider for your financial situation.

At Carplus, we offer a free online car finance eligibility checker that can assist you in determining whether or not you meet the application requirements. The great thing about our eligibility checker is that it won't affect your credit score. You can use it with peace of mind, knowing that it's simply a tool to assess your eligibility without leaving any marks on your credit record.

By using our eligibility checker, you'll gain valuable insight into your eligibility for car finance. This information can help you make an informed decision before proceeding with a formal application. It's always best to be proactive and ensure you're eligible before submitting an application to increase your chances of success and avoid unnecessary credit inquiries.

Final words

In conclusion, the typical timeframe for car finance approval in the UK is around 1 to 2 days, though it can vary depending on the lender. To enhance your chances of approval, provide accurate and complete information in your application, and have the necessary documents readily available. By following these guidelines, you can potentially expedite the car finance approval process and get behind the wheel of your dream car sooner.

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