Arnold Clark car credit explained

Arnold Clark is a car giant that has been offering car rental, car leasing, car loans as well as various car

finance options for private individuals as well as business organizations. With its huge network of showrooms and branches as well as its online services, the company has been offering services to thousands of satisfied customers.
Arnold Clark has a few good options for businesses among which their Contract Hire is the most popular car credit product. With this finance product, the contract would be for a set duration during which the car of the choice of the customer would be given to them for use on hire against fixed monthly rentals. Arnold Clark offers the opportunity to get maintenance included in the rentals. The vehicle would have to be returned back at the end of the term.
Another option available for businesses is the sale and leaseback option. This is mainly for those who already have vehicles but want to convert their vehicles to contract hire in an easy way. Arnold Clark would purchase the vehicles and then provide them back on lease. This option is considered by many businesses because of the benefits that it provides, including release of tied up capital of the business.

Contract purchase option is for those who want to have the ownership of the vehicle but do not want unnecessary risks for their business. Like contract hire, even this type of agreement would offer all the benefits like recovery of VAT, cost stability  and also capital allowance claim. At the end of the term, you would also have the right to purchase the car or the vehicle by making a balloon payment but you can also decide to return back the vehicle if you want.

Car finance options for individuals

For individuals who are looking for car credit options for their personal use, Arnold Clark offers personal contract hire. With this type of car finance option, you would be able to select the car of your choice. Arnold Clark would then offer the car to you on hire basis. The agreement term would be fixed beforehand along with the monthly rent that has to be paid. The instalment that would have to be paid per month would include VAT and if you want, maintenance can also be included with the car finance quote.

Like contract hire for businesses, you would have to return the vehicle back to Arnold Clark at the end of the term as decided. This is mainly a program for hire and you would not have an option to purchase the vehicle at the end of the term. The main benefit of this car credit option is that you would not have to worry about the rising interest costs, maintenance costs or the depreciation of the car. You can simply use the car of your choice and then return it back.

What is a bad credit car loans in UK

In UK, a lot of people are currently dealing with bad credit history. With poor credit, it can get quite difficult to arrange for any type of finance or loan.

If you have been thinking about applying for a car loan, then you should know that there are special bad credit car loans that are offered by a few financial companies today where you would have higher chances of getting an approval.

What are bad credit car loans?

Bad credit car loans are loans that are provided to individuals with specific credit problems like arrears, defaults, bankruptcy, IVAs or CCJs. Car loans are generally rejected by the high street banks because of these reasons but there are a few financial companies today that cater specifically to these individuals.

These loans are available in the form of unsecured as well as secured loans. Providing a security would be the best possible way of increasing your chances of getting a loan. However, if you are not a homeowner and do not have any type of security to offer then unsecured car loans are also available.

Terms and conditions for borrowing

Bad credit car loans would generally have a higher interest rate since the risk taken by the lender is also higher. The repayment term for the loan would be decided based on the amount that you borrow and your income. For old car loans, the car must not be over 5 years old. A down payment would also be required in order to get the loan.

There will be a few basic documents that would have to be provided to the lender like residential proof, income proof and identification papers. These loans are normally provided for shorter amounts and shorter repayment terms.

In order to reduce the overall interest that you would be paying for the car loan, it is advisable that you pay a higher down payment. It would also be necessary for you to research well before you apply for a loan.

Some of the finance companies that currently offer bad credit car loans are Credit Plus, ACF Car Finance, Car Finance 247 and Welcome Car.

How easy is it to trade in a car?

Although trading in a car had been normally thought of as a very lengthy and a complicated process, it is easier today because of the internet. There are several online websites today where you will be able to trade in cars quite easily.

These websites would have potential buyers from all over the world so you would have good chances of getting higher prices for your car.

Know your car’s value

There are a few things that you would have to keep in mind if you want to make the trade in process simpler. The first thing you must know is the value of your car at present.

Because the dealers purchase cars at wholesale and would sell them at retail prices, they would want to pay you as low a price as possible. If you are planning to trade in your car with a dealer it would be very important for you to learn a little about the process.

Consider private sale as well as a dealer trade in. With proper knowledge you would be able to get a good price for your vehicle.

Get your car cleaned and repaired

Once you do know the value of your car, there are several ways in which you can get more than its current value. If your car has been used for quite some time now then it would be important for you to get it professionally cleaned.

Get the car waxed and wash and get it repaired so that it would look presentable and attractive for the prospective buyer. You should also know that dealers would be willing to pay a higher amount if the car is in good condition.

Listing your car online

One of the easiest ways to trade in a car is by trading it online. There are several ways in which you can find private buyers online. Websites like Craig List and Auto Trader are great places for you to consider.

You can open an account with some of these websites, list your car, upload the photographs and provide all the details that would be required by the buyer. 

Trading in a car is no longer as difficult as it had been in the past.

Is it fraud to obtain a car loan using a company you no longer own

With the current economic problems, getting a car loan has become even more difficult. While in the past there had been several sub prime car loan companies that had provided car loan approvals to almost anyone, things have changed today.

Getting a loan would be much more difficult for those who do not have a valid income source to show the lender. Quite a lot of people often turn towards other ways of getting an approval.

Can you show documents of income for a company that you do not own?

If you are self employed, it would be even more difficult for you to get a car loan. There are a few people who try to get an approval for a car loan by using a company that they do not own any longer.

You must know that the action is considered to be fraud and it can create several serious problems for you in the future. Car loan companies today have

strict procedures and there are high chances that your fake documents would be easily spotted.

Why is it considered to be a fraud?

When a borrower applies for a car loan, the lender would ask for a specific set of documents. These documents are needed so that the lender would be able to evaluate them to decide if the borrower fits into their desired profile.

This would help the lender decide if they should provide a car loan to the concerned borrower or not. When you provide income documents of a company that you no longer own or provide any incorrect information knowingly, it is fraud since you are trying to misdirect the lender for your own benefit.

Since the banks and loan companies today are highly advanced and have several different methods of cross checking the information and the documents provided by each applicant, there are high chances that any incorrect documents or information would be noticed.

There are strict legal proceedings against anyone who commits fraud in UK and so it is important that you stay away from any inappropriate or misdirecting action in the future.

Where is the best place to get a £2000 loan for a little car

Most people in UK today have to rely on car loans in order to fund their car. There are a large number of car loan companies, banks and online financial companies that offer various types of car loan options to borrowers.

However, one of the biggest hindrances is the amount that is offered. In most cases, the banks and financial companies would have a set lower limit for borrowing. In the case of car loans, borrowers would not be able to borrow any less than GBP 5000 for a car loan.

What can you do when your requirement is lower?

Several people today do not want to spend any more than they can afford. If you are planning to purchase a small car and only require GBP 2000 for a used car then trying to get finance for your requirement
would be a little difficult.

The finance companies or online car loan companies would not provide funding for a smaller amount. The only two other options are to try finding a loan with your current bank or with the credit union in your town.

Credit unions and banks can help

One of the best ways to arrange for a small amount for purchasing a car would be by contacting your local bank. Traditional banks are normally very flexible with their products, but only for their loyal customers.

If you discuss your requirements with the bank there is a possibility that they would be willing to provide you a car loan, a personal loan at low interest or even an overdraft on your account that you may be able to use for purchasing the car.

The best possible option for you would be to get a loan from your credit union. Credit unions normally provide smaller loans so you would be able to find it easy to get funding.

Although it is possible to get a personal loan fast through a private lender or finance company, the interest rates for smaller amount loans are known to be quite high. You would have to check all your options and compare the interest rates for each option before you select one of them.

Is it cheaper to buy a car with a loan from a bank or the dealer?

If you have been searching for car loans for a new or a used car, there are two main options available for you. You can either secure the finance directly from the car dealer or you can take the loan from a bank.

Both of these options have their own pros and cons and so it would be important for you to consider them while selecting the right financing option for your need.

What do dealers offer?

Purchasing a car and getting it financed directly from the dealer would be the most convenient option and one which is also the most popular. However, you should remember that this is definitely not the cheapest possible option.

Dealers are known for higher interest rates that they charge because of the convenience that they offer to their clients. If you take some time to research and compare the car loan options online you will find that there are several lower interest car loans that are easily available today in the market.

What do banks offer?

Banks and finance companies that offer car loans offer several great options. Banks normally charge lower interest rates for their car loans in comparison to the dealers so you would definitely be saving a considerable amount of money.

Most banks will also offer you secured loan option. With a secured loan, the risk of the bank is lower, which is one of the main reasons why they can afford to charge low interest rates. If cost is the main concern for you then banks are definitely the right choice for a car loan.

Banks also normally have more than one car loan products so that you can select one that is most suitable for you. Depending on your income, the car that you are purchasing and the term that you select, you would be able to get an installment that would be affordable for you.

On the other hand, arranging for a car loan through a bank and researching for all the options available is time consuming and not exactly convenient. Banks and dealers both have their own advantages and disadvantages, as discussed above, and you will have to consider them before you select any option.

What happens if I sell car or other product before repaying loan?

A large number of people today take car loans in order to fund the purchase of a new or a used car. Loans are also available in UK for other high ticket items like refrigerators, televisions, home appliances etc.

If you have taken a car loan or any other product loan and have not yet repaid it in full, you would not have the full ownership of the product if it is a secured loan.

Car loans are secured

One of the first things that you should understand before you take a car loan is that it is a secured loan. What this means is that the loan amount that you borrow from a lender would be secured against the car itself. In the event that you fail to repay the loan in full, the lender would be able to repossess the car and then sell it off to recover the money.

The same is true for any other type of secured loan, whether it is a personal loan or any other kind of product loan.

Can you sell the car before the loan is paid?

You would not be able to legally sell the car before the loan has been repaid in full. With a secured loan, the ownership of the car or of the product concerned would be with the lender until the loan has been repaid.

In the case of a car, the registration documents of the car would be with the lender and would only be returned to you when the loan has been repaid. If you sell off the car without the registration documents before the loan has been paid, the lender can seize the car from the buyer.

An action of this nature can also result into a law suit and so it must be avoided.

You will also require an NOC or a No Objection Certificate from the lender or the bank before you would be able to sell the car, even after the loan has been paid. The fact also applies to other forms of secured loans.

As a borrower, this is a very important point that should be kept in mind to avoid any legal problems in the future.

Can a logbook loans company get the car back if I sell it

There are several different types of loan products available in UK for every type of borrowers.

For bad credit borrowers, the options tend to be somewhat limited.

Car logbook loans are currently very popular with the bad credit borrowers since they are hassle free and easy to get qualified for.

What are logbook loans?

A logbook for a car is the registration document that the owner of the car would get when he/she purchases a new or a used car. With a car logbook loan you would be able to borrow money against the logbook of your car.

What this means is that you would have to provide the logbook to the lender as a security. However, you would still retain the ownership of the car and would be able to continue to use it like normal. In the event that you fail to repay the loan in full, the lender can repossess your car and sell it to recover the money that you owe.

Can you sell the car if you have taken a car logbook loan and can the lender get it back?

With car logbook loans, the car would not change hands and you would be able to continue using it. However, since you would have to hand over the logbook to the lender, the ownership of the car would be temporarily given to the lender through the bill of sale.

What this bill means is that you cannot sell the car off legally if you have not yet repaid the loan. The bill is governed by Consumer Credit Act. Though the lender would not be able to seize the car without the court order, it is still illegal to sell the car on which you still owe money.

Even if you do sell off the car, it would be seized back by the lender from the person that you have sold it off to. You should also know that a step of this nature can result into a law suit against you. In any case, a buyer would not consent to buying any car without the logbook so it would be rare for you to find a buyer for your car when you don’t have its logbook.

How can I get out of a car loan that is currently over under?

An over under car loan is basically a loan where the balance that you still owe to the lender is more than the current value of your car.

At that stage, selling of your car or getting out of the loan can be a very tricky task since you would still owe money to the lender even after you sell off the vehicle and use the money to repay the loan.

How can you get out of an over under car loan?

It is possible to reduce your overall debt on the car loan in a short time so that you can get out of the over under car loan. Given below are the few steps that you will have to follow:

* The first thing that you will have to do is to find out the exact value of your car currently. There are several ways in which you can do this and many reliable online tools available. You can get more benefits if you sell the car to a private party rather than trading it in with a dealer.

* You will have to also assess the condition of the car. If the condition of the car is less than impressive it may be a little difficult for you to sell it. You will have to do what you can to make sure that it would be attractive to private buyers when you do put it up in the market.

* The next thing that you will have to do is to decide if you want to go for a less expensive loan or want to sell off the car. If you do sell off the car at its current value and nothing more, there will still be a balance that you would have to repay to the car loan company. The only other way out of the loan is to find a private purchaser who may be interested in paying you a high amount, provided that your car is in good condition. If you find a buyer that pays the full amount that you currently owe to the lender then it would be an ideal situation.

* If none of these options seem to be suitable for you then you may have to simply start saving money so that you can repay the loan faster than the end of the term.

What is the cheapest bank rate for a car loan in Ireland?

The necessity of a car for any family is undeniable. Having a car is necessary for every family but the biggest problem for most people today is the high cost of owning a vehicle.

Though most people would rely on a car loan taken from a bank or from any other financial institution, it would be very important to first ensure that the interest rate that would be charged on your loan would be an affordable one.

In Ireland, borrowers will have plenty of options available which can make it even more difficult to find the right car loan.

What is the best way to find the cheapest car loans?

The best possible way to find the cheapest possible car loans in Ireland today is by taking help from some of the online specialist loan companies. Money Expert, Auto Trader etc are the websites where you will be able to find quotes from dozens of lenders in the market.

What makes things easier is that these websites will find the cheapest loans for you and then provide you all the options. Since the information is provided in easy to understand comparison charts, you would be able to compare all the options you have to find the best possible car loan for your financial condition.

Which are the cheapest car loans in Ireland today?

Car loans are provided by several different banks as well as finance companies today. Companies and banks like Finance Direct, Bank of Ireland, Car Finance, First Active and Ulster Bank all offer car loan products to their customers.

However, if you are looking for the cheapest possible car loans then the top three choices in the market currently are Tesco Finance, AIB and Halifax. Tesco charges an APR of 6.9% which is the cheapest in the market currently. AIB offers car loans at 7.9% while Halifax offers an APR of 8.1%.

Although the differences may seem to be quite marginal, you should know that even a point difference in the interest rate can actually sum up to be a substantial amount in interest payments in the end.

For this reason it would be very important for you to ensure that you find the cheapest possible car finance for your next purchase.