How Vehicle Finance Works
Whether it’s buying a new vehicle or just taking out finance, for those new to the process things can be a bit daunting. At Platinum Finance we make it our mission to make process simple.
Do I even need vehicle finance?
If you have the cash in your account to purchase a vehicle, this gives you the option to pay for the vehicle in full or you can choose to make a part payment or deposit or keep the cash in your account and finance the full amount. But when you don’t have access to the cash, vehicle finance gives you the ability to buy the car now and pay back the money you have borrowed, along with any interest or fees, over a set period of time of typically 1 to 5 years.
What happens when I apply for vehicle finance?
Along with checking personal details to verify you are who you say you are, vehicle finance lenders can also check things like your income via payslips and bank statements. This is to ensure you have the ability and affordability to pay back the amount you are requesting to loan (or determine how much you can borrow). A credit enquiry is compulsory and will be performed by either the introducer (us) or the finance company.
What does pre-approved vehicle finance mean?
Basically, pre-approved means you have a;ready submitted an application either direct or via an introducer (which can be a broker like us) where your information has been assessed and an approval has been given. These indicative approvals can be used for any asset or vehicle, but be careful as things like the vehicle age, kilometers, left hand / right hand drive can affect a pre-approval. Either way at the end of the day, sure it can save a whole lot of time and effort, as you can focus on finding the right car that fits a predetermined budget, but it’s prudent to double-check with us first before finalising the purchase.
What’s the difference between secured or unsecured vehicle finance?
Unsecured vehicle finance is basically a personal loan, and will most likely have a higher interest rate to make up for the risk of the loan not being secured against the vehicle purchased. Where someone might go for this option is where they don’t meet the criteria for a secured vehicle purchase, or want the flexibility of having the cash in their bank account to purchase on their terms. Whereas a secured loan, or secured vehicle finance is where the car or vehicle you are taking a loan out to purchase gets used as collateral for the loan. Secured lending is where the finance company pays the seller directly, rather than the funds going into your account first to use at your discretion. This type of lending typically can be a much cheaper option.
How do I get started with vehicle finance?
The best place to start is to by talking to us and get an application underway. The application process is seamless, so you get on the road sooner with an arrangement that works best for you.