Will I get a car loan in this economic climate?

In the last few years, UK, like most other countries in the world has been in the grip of an economic crisis. Several people have lost their jobs, many have suffered in the process.

The consumer finance industry too has gone through a great many changes. Several applicants have noticed that they face more difficulties when they apply for any type of loan.

How has the market changed?

Because of the economic difficulties in the last few years, several loan companies, banks and financial institutions have suffered. The borrowers who had earlier borrowed car loans were unable to pay their installments on a regular basis because of which several companies had to face massive losses.

In the process, the car companies too have made their terms and conditions for car loans a little stringent to ensure that they only provide loans to those who would be able to repay them. While earlier it had been very easy for just about anyone to borrow a car loan, whether they have bad credit or are self employed, things have become a little difficult today.

Would you be able to get a car loan today?

Even though there have been a few changes in the economic condition lately, borrowers would still be able to find car loans quite easily. If you have a good credit history, or even acceptable history there would not really be a problem for you to get an approval.

However, you should know that the options are slightly limited today. Where there had been a large number of online car loan companies earlier the number has reduced over the last few months. Some of the most well known financial institutions and companies still offer car loans that are affordable as well as convenient.

For borrowers who are self employed, have low credit scores or a poor credit history, getting a car loan would be slightly more difficult. Most lenders today are not too eager to fund risky profiles which will make it necessary for these borrowers to turn to the bad credit car loans.

With a higher down payment, a co-signer or some type of security the chances of getting a loan would be much higher.