OK, you’ve been thinking about buying a used car for months and have finally decided to go ahead and apply for finance. The problem is, what about if you get refused? Read more here.
Car Finance Glossary
We know that some car finance terminology can be very confusing. That’s why we have put together this comprehensive list of car finance terms to help you understand.
APR – APR or Annual Percentage Rate is the term is used to describe the rate of interest that you will pay over the course of a year on money you have borrowed as a percentage.
Arrears – Occur when a repayment instalment has not been paid in full and is past its due date. The amount of the arrears is the amount accrued from the date on which the first missed payment was due.
Balance to Finance – The total amount left to pay on your account. On a fixed agreement, this will change each month as you make your regular monthly payments.
Cash Deposit – A cash deposit or just deposit, is the initial payment you put down towards the car at the start of the finance agreement. The larger your deposit, the lower your monthly payments.
CCJ’s – If you’re unable to repay a loan or credit card, the provider may take you to court in order to recover the money. If this happens, a County Court Judgement (CCJ) could be awarded against you. A CCJ can often deter other lenders from wanting to lend you money.
Credit Score – Also known as a credit rating, is based on your past credit history and existing debt. Lenders use the information held in your credit file to decide if you should get credit, and if so, how much to give you. It can also be used to determine APR rates for a credit agreement.
Defaults – If you’re unable to make repayments on an existing financial agreement, the lender/creditor may record this on your credit reference file as a ‘default’. Like a CCJ, a ‘default’ can deter other lenders in the future.
Ex Bankruptcy – After a year of being bankrupt, you’ll usually be discharged from bankruptcy. This releases you from any debts covered by your bankruptcy. It also takes away the restrictions of bankruptcy, unless a bankruptcy restrictions order or bankruptcy restrictions undertaking has been made.
Financial Conduct Authority – The Financial Conduct Authority is an independent body that regulates financial services in the UK to ensure consumers get fair and honest deals.
Monthly Payment – A monthly payment is the amount you’re required to pay each month until the debt is paid off. Monthly payments are specified in loan documents — how they are calculated, when they are due, and what happens if they are not made as agreed.
SAF Certified – SAF is a scheme introduced by the Finance & Leasing Association as means of showing specialist accreditation to deliver high quality financial services and professionalism. All relevant team members have to be re-tested each year. Henson Car Supermarket is fully SAF approved
Helpful friendly staff. Quick and easy process!
Fantastic dealer, really quick at getting finance in place and extremely helpful friendly staff. Would recommend to everyone.
Very friendly staff! Go out there way to get you what you want and very easy process. Would recommend to anyone if you're wanting to buy a car or finance. Thank you :)