Car finance is an opportunity that allows you to borrow a certain amount of money from the bank. There is a specific interest rate that you will have to pay. It varies from bank to bank. Man banks in the UK provide this facility which lets people afford to buy a car for themselves. It can be otherwise difficult to save up and buy a car on your own but lending the money and then returning it gradually gives you a lot of benefits.
However, car finance is a facility that may not be available to everyone. There are certain requirements to be eligible for getting car finance. It can be rejected for people who do not fulfill the requirements. These requirements may vary from bank to bank. You should not be disheartened if you feel like you will not be given car finance, look into different banks, and you might find one that suits your situation.
The basic requirements for car finance include age limit, income, employment type and residence. The age limit is from 18 years to 75 years mostly. How much net income you get over a certain period has to be told to the bank. Whether your employment is permanent or unstable also affects the chances of getting car finance. Your resident details, like where you live for example in an urban area, and how long you have been living there, etc. need to be known as well. The eligibility criteria and a requirement for these details are different in different banks. It also largely depends on what kind of car and which model you are planning to get car finance for.
All these details are important to be known by the bank to make sure that the money the bank will lend can be paid back. These details give the bank a guarantee of on time payback. This is why your credit score and deposit in the bank account also plays a major role in determining whether you should be granted car finance or not.