How long does it take to get car finance? A realistic timeline

Are you thinking about car finance but don't know how long it will take to be approved? Here's a realistic timeline of the whole process.



So, you're ready to apply for car finance? You probably have a wealth of questions, including how long it will take.

Perhaps you need the car for work, care duties or an upcoming holiday. Whatever your circumstances, you want the reassurance of knowing when approval is likely to come.

The short answer is that it depends. In the UK, car finance can be approved surprisingly quickly. The timeframe, however, will depend on how prepared you are and your credit history.

In terms of preparedness, you'll need to make sure you have all the relevant documentation to hand. This boosts your chances of getting approved in one go rather than coming and going as you search for paperwork.

And as for credit history, you've got options. If you've got a poor credit history, you can either take steps to build your score, or you can work with a specialist bad-credit car finance company.

Here at Zoomo, you can be approved within an hour – and we specialise in customers with bad credit scores. The only real obstacle to you driving away from the forecourt is the paperwork required after approval. Have that to hand, and you'll be on the road in no time.

How long does it take?

If you apply online through a lender or broker, your approval could be granted within a few minutes.

The process takes longer if you apply offline – either in person at a dealership or through a bank branch. The paperwork involved can extend the process to anywhere between one and three business days.

The next step depends on the information you provide to the lender or broker. If you give them everything they need, the decision could come through within a day.

If your application is online, you can sign the agreement in seconds. If you apply in branch, you'll have to either travel to the branch to sign the agreement or have it sent to you in the post. This to-ing and fro-ing is a key reason why many customers prefer to apply online.

Once the paperwork is completed, you should be able to drive away on the same day.

However, there are a couple of exceptions to this rule:

1. When the paperwork is completed on a Friday, and the dealership is closed at weekends. In this case, you should get the car within a few days.
2. If you buy a car that isn't currently in stock. In this case, the timeline depends entirely on how long it takes the dealership to source the car and prepare it for sale.
   
   

What can slow down the process?

Getting car finance can take a matter of days. But there are a few key factors that can slow down the process.

1. A poor credit history

The first potential cause of delays is your credit history.

This is a record of your financial and borrowing history. It includes:

• Your personal details
• Active and past credit accounts (such as loans, credit cards and overdrafts)
• Missed payments
• County court judgments (CCJs)
• A log of who has searched your file
  
  

The quality of your credit history can vary for a whole bunch of reasons. The main thing to note is that a poor credit history shouldn't mean you can't get car finance. You'll just have to demonstrate that you can afford the monthly payments and apply to a broker that specialises in bad credit.

2. Paperwork

The second thing that can slow down the process is delays with paperwork. These tend to fall into two categories: personal details and proof of income.

The first category is self-explanatory, but the second may require some thought. When applying, keep in mind that a lender's priority is to get their money back. If your initial application leaves this open to question, you'll be asked to provide further proof of income.

3. Being self-employed

Self-employed customers may need to provide extra documentation. If you don't have this to hand, the process can take longer.

4. Applying out of hours

Finally, your application could take longer if you apply outside the lender or broker's business hours or over a weekend. 



What can I do to speed up the process?

There are two main things you can do to speed up the process:

1. You can think strategically about your credit score.
2. You can arm yourself with the relevant paperwork before applying for car finance.
   
   

In the case of a poor credit score, there are two paths you can take.

The first involves building and improving your credit score by, for instance, registering on the electoral roll and making sure you pay all your bills and other payments on time.

The second is quicker. It involves applying through a specialist bad-credit car finance company like us.

And as for paperwork, you just need to make sure you read the lender or broker's requirements. Do this before you fill in the online form or go into the branch.

Does it take longer to go through a broker than a lender?

No. Applying through a broker shouldn't take longer than going directly to a lender. In fact, a broker can save you time by matching you to a panel of possible lenders rather than going through them individually.

How we can help

At Zoomo, we specialise in providing car finance to customers with bad credit in Newcastle and the North East of England.

It takes under two minutes to fill out the online form, and most customers get a decision within the hour.

Once you've been approved, you need to verify your personal details and income. With that out of the way, it's time to drive away in your new set of wheels.

Ready to get started? Apply online today. Still have a few questions? Get in touch with our team or read our guide to how car finance works.