How long does it take to get finance?
There are three stages with organising car finance, some are quicker than others.
The stages include:
Getting conditional approval can be quick if you know how much you want to borrow and what type of car you want to purchase. This stage is where you submit a full application and the broker looks at it and you either fit or don’t fit into the lenders guidelines which results in an approval or decline.
Conditional Approval is like the lender saying if everything you have put on your application is true and correct, we can approve the loan but we still need to do all our checks and you need to provide supporting information to prove your position (ie payslips). It is really important not to exaggerate and not disclose credit problems or other loans as a Conditional Approval can quite easily be withdrawn and this can cause you problems in the future if you apply for another loan.
Once you have a conditional approval, you can go car shopping with peace of mind that the money is there once you find the ideal car. Conditional approval can be instant or within a couple of hours.
Final approval occurs when the lenders perform all their necessary checks and can verify that the information provided on your loan application is true and accurate. This can take longer, up to 5 working days. If you don’t have the proof the lender requires readily available, it can be YOU who holds up the process even further. This is something to be aware of. Gathering bank statements, payslips and rates notices can add up to longer than you might expect.
Once you have final approval and you have found the car, you need to notify your broker so that loan contracts can be produced which you will need sign and get witnessed for Loan Settlement.
Once the loan contracts have been signed and provided to the broker, settlement will take place. The Loan contracts along with all the supporting documentation are submitted. Usually these supporting documents include:
Proof of income
As long as everything is accurately signed and these supporting documents are present, the lender transfers the funds to the seller. This means you can arrange to pick up the car!!