By getting people the loans they need, I can help them reach some financial security. My loans help people by new cars, extend their house and consolidate expensive debts. Once they get their money issues under control they start to do better in all aspects of their life, they have better relationships and start doing better at work. It's great to be the catalyst for positive change in my clients life. If you are also in the financing industry or a client wanting to understand how financing works, please read on. This site is an exploration of how we decide who to lend to and how much we can lend them.
Now you've passed your P plates, it's time to hit the road. If you need a car to get to work or just to friends' houses, borrowing a car from your family members can be inconvenient and subject to the whims of the person you are borrowing from. Young drivers can find getting car loans tricky especially if they have variable income from a casual work.
Here are some tips on how to get a car loan, so you have access to your own vehicle.
Collect Your Average Pay Slips from the Last 6 Months
If your payslips vary over time then collect a history of payslips, and show any particular variations. (Retail and hospitality workers often peak in earnings around December and January, and may have lower earning in February and March for examples). That way you can show examples of high and low payslips and your finance application can reference an average amount. Lenders may choose to use a lower amount, to ensure that you can consistently make payments.
Show Your Savings History
A savings history can demonstrate that you consistently have excess money at the end of each pay cycle, and the discipline to make regular payments towards a goal. Even if you have withdrawn the money previously for other goals such as holidays, this still shows a positive trend for lenders. The history of savings is a persuasive part of the story of why a lender could lend you money.
If you do not have a particularly consistent saving history, it is also helpful to a show a budget where you have determined how much money you have coming in (from jobs or government payments) and money you have going out (to pay other bills, and to maintain the car).
Show Any Bills You Pay Regularly
Even if you live at home, you should show your payment history on any bills that you take responsibility for such as credit cards, store cards or mobile phone bills. By showing that you regularly make payments against your commitments you can give the lenders faith in your commitment to paying back the loan.
If you do not currently pay any bills, taking on some bills in your name can be a good way to prepare for taking on a car loan, and other loans in the future.
Using these tips can help you maximise your chances of getting your car loan approved, with the best conditions. For more information, contact Fox Car Loans.