In today’s market, if you are looking to buy a new car, you may need to finance it. It may seem like a complicated venture, but the process can be simple.

In this blog, we’ll cover the various stages of the application process, the things you’ll need to apply for, how long it may take and anything else you should expect. 

How to Apply for Car Financing

Firstly, it would be beneficial to have a clear understanding of how much you are willing to pay and how much you can afford, based on your current financial situation. 

Weigh up your expenses, income, and existing debt to gain a clear vision of what you can realistically afford when choosing a vehicle. It’s crucial to remember that the car itself isn’t the only expense you will be forking out for; you will also be responsible for paying for petrol, road tax, MOTs, repairs, and maintenance. Our team is happy to help you work this out so before making an application, make a list of your income and expenses and we can help you from there.

It would also be useful to have an understanding of your current credit score, as this will be one of the checks your provider of choice will be carrying out when you apply for financing.

After you have a clear view of your financial situation, you’ll be in a good position to make an application. Most providers offer the option to apply online and at Ucan, we also take applications over the phone for a bit of extra support.

Once your application is submitted, you can sit tight and await a decision. Our applicants usually get a decision and quotation within two hours*.

Once accepted, you’ll be able to select a car from your provider’s nearest dealership, complete the paperwork, and drive away into the sunset. 

What Checks are Done for Car Finance in the UK?

Providers will be checking for a few things when you apply for car finance; who you are and an assessment of whether you can afford your repayment plan. 

Proof of identity

Firstly, to make sure you aren’t committing fraud, providers will want to prove you are who you say you are. They will ask for your:

  • Full name, including any previous names
  • Date of birth 
  • Residential status
  • Marriage status
  • Bank details

Often, your driving licence will be enough to prove your identity however a provider may ask for more supporting information if needed.

Proof of address

To support your identity checks, a provider will ask for a history of living addresses spanning the past three or four years. 

Occasionally, providers may ask for two forms of proof for this: utility bills (which could include water bill, energy bill, or council tax) or a bank statement. 

If you have been a renter, and have moved properties often, you must be as accurate as possible with your history of addresses as any inaccuracies could hinder the application process. 

Employment history

You also will need to provide your current employment details (including your job title and salary) as well as how long you’ve been employed at your current job. 

Income

In order to demonstrate you can afford your repayment plan, providers will need to understand your income. 

This can often be shown through the details of your employment or the benefits you get but it is possible that providers may request to look at bank statements or payslips to assess your financial situation.

Driver’s licence

It seems obvious, but to apply for car finance you must be able to drive, so you must provide proof that you have legal status to drive. 

This is as simple as providing a copy of your full UK driver’s licence to your finance provider. If you have a provisional licence, it may also be possible to acquire car finance.

If you’ve lost your driver’s licence, you may be able to prove your legal status to drive through another form of identification, such as a passport, which the provider can use to confirm with the DVLA. 

Credit check

Finally, the provider will perform a credit check, which will determine whether you can be approved for car finance. This may also affect the rates you’re offered. 

As mentioned, it’s beneficial to check your credit report before applying for finance, which can be done via online credit checkers or by visiting your bank.

How Long Does Car Finance Approval Take?

If you apply for car finance with us on a weekday you’ll have a decision very quickly, often on the same day and not usually longer than two business days.

Apply for Car Financing Today With UCan

Ready to apply for car financing? Get a finance quote from UCan today! The process is simple and takes 30 seconds to get a quote.

*(Applications made between 9am and 6pm weekdays)