You would think that buying a car these days is a straightforward affair. The sad truth is that car finance applicants get scrutinised by lenders more than they used to. It seems that, unless you have a squeaky clean credit record, you have no chance of obtaining car finance.
When people get declined for car leases, they resign themselves to the fact that they’ll never be able to buy their dream car. But, did you know that you’ve still got a few options open to you? Check out these examples to illustrate what I mean:
Consider specialist lending streams
If you can’t get car finance through dealerships, the next thing to do is apply direct to a specialist lender. They will usually be able to lend you the money you need. The only downside to this approach is that you’ll get charged higher interest rates.
Still, if the rates aren’t too much more expensive than the ones offered by traditional car finance lenders, it’s worth a try.
Get a bank loan
Do you have a good financial relationship with your bank? If so, it might be worth approaching them for a personal, unsecured loan. These days, they will do affordability checks to ensure you can pay back the money you borrow.
The difference between your bank and other lenders is that their credit scoring process might not be so exhaustive. Especially if you’ve already borrowed from them. Examples include overdrafts and credit cards.
If you use online banking, it’s worth logging in and seeing if you’ve been pre-approved for a loan. Do you get paid a good salary into your account each month? If so, and you seldom use your overdraft, you’ll be a likely candidate for a pre-approved personal loan.
Approach a credit union
Few people realise this, but it’s possible to borrow money from your local credit union! In a nutshell, a credit union is an organisation where its members provide funding for personal loans.
The difference between them and banks is that they will discuss your needs with you in person. Banks just use computer systems to accept or decline loan applications. If you can prove that you’re not a high risk, you will more than likely get accepted for a loan. What’s more; the interest rate might even be lower than the one offered by your bank!
Supplement your income
Are you desperate to buy that dream car you’ve always wanted? If so, it’s worth finding ways to increase your total income.
There are literally thousands of ways you can do that. And no; I’m not suggesting you go out and do anything illegal! Examples of legitimate income sources include bar work, affiliate marketing and web design.
The key is to think about your strengths and skills. Next, think about how you can make money using them! For instance, let’s say that you are good at restoring bicycles. You can collect scrap bikes, refurbish them and then sell them on for a profit.
Hopefully those ideas will have given you some inspiration. Now it’s time to put them into practice. Good luck!