Can I Apply for Car Finance Online?

Every year in the UK, approximately six million people buy cars on finance. Wow! 😮 And that comes as no surprise whatsoever - car finance is a powerful solution for getting your next vehicle without having to splash out £20,000 in one go. In fact, car finance’s popularity hasn’t stopped soaring in recent years. Whilst car finance is on the rise, so too is digital transformation, but can you apply for car loans online? How easy is it and is it the best way of getting your next car financed? Let’s find out! 🔍

Can I Apply for Car Finance Online? 

Although getting your next car may seem like a huge deal to most people, doing it through car finance can make it a walk in the park. Tracking down a great car finance deal online is so much easier than it was 20 years ago! Nowadays, you can sort everything out from the comfort of your own home, in just a few minutes. Technology is changing the way we apply for car finance in the 20s! That’s the promise of online car finance: getting you your dream car without you ever having to wait hours on the phone or send in piles of documents. So, yes, you can definitely apply for car finance online. But, hey, how does it work

Well, first things first, you’ll need to prove your identity and show that you can afford to repay your loan. Once you’ve done that, your lender will perform a credit check and an HPI check on your vehicle. You’ll then get a car finance instant approval online and you’ll be able to go and purchase your dream car, as soon as you want. Sounds amazing, right? So, how does the online car finance process compare to the traditional one - is it really that much better? Let’s find out! 

The Traditional Car Finance Process

With most lenders and car finance providers, you’ll have to speak to someone on the phone to confirm details of the loan, review contracts, and confirm your identity. You’ll be lucky to find a traditional car finance company that does loan pre-approvals online. You’ll most likely find yourself spending upwards of 25 minutes on the phone for every step of your car finance journey, speaking to Jan or Dave, without necessarily having your needs met. And you might have to wait until Monday to do that. And even then they might want you to post various evidence documents to them.  It’s not fast, it’s not efficient, and it’s not practical.  

The Benefits of Online Car Finance

The major benefit of applying for car finance online hinges on convenience. It saves time - which is a valuable commodity for many these days - and makes the entire process run so much more smoothly. Getting a decision instantly on how much you can borrow means you will be able to plan immediately for the type of car you want to buy. On the other hand, if you go through the traditional in-person application process, everything just takes so much longer (sometimes even weeks longer) and it all involves a lot more effort. 

Applying online also means you can see if you are eligible to borrow money at all, and if so, how much. Knowing what you can borrow gives you more time to think through whether you can afford to keep up those repayments, and also ensures you are looking at vehicles within your budget. That way, you’ll also be able to make sure that your application does not get rejected because you’ve asked for the wrong amount, and your credit score does not get damaged in the process. 

Remember, any car finance application is subject to status and eligibility. You'll need to be a UK resident over 18 years of age, and any offer you are given would be based on your individual circumstances and affordability. Each lender has its own requirements when it comes to income (self-employed, unemployed, on benefits…) and credit scores (low credit score, no credit score…), so you should also spend some time researching your preferred car 

Can I Get Car Finance Instant Approval Online?

Instant decision car finance will give you a decision on your loan within 60 seconds. You’ll find that you’ll only get instant approval options with online car finance companies, because other traditional companies just simply lack the technological infrastructure to do so. One of the main gripes around car finance borrowing relates to the length of time it takes, so if that’s something you’re worried about, go for an instant approval car loan provider. Here at Carmoola, for example, it only takes 60 seconds to get a decision on your car loan. 

Online Car Finance With Carmoola

You are probably wondering - who are the best online car finance companies? We might be a bit biased, but if you have decided to look at  or get car finance online, then look no further.  If you don’t like long, complicated processes, then you’re going to love Carmoola. Applying for finance takes just a few minutes, or even a few seconds, and it all happens through a handy smartphone app where the process is clear and easy to navigate. 

When you apply, we’ll take you through a digital identity verification process, demonstrate the different amounts, terms and monthly repayments you could have, and once approved set out all the terms and conditions within the app. There's no pressure, and you can take as long as you need to think about your decision on whether finance is right for you. And if you have any questions or need some part explaining in more detail, we're available 24/7 to help you.

Can I Apply for Car Finance Online?

This is totally up to you! Applying online is certainly a faster and more convenient process than having to wait to do it during working hours at a physical location such as a dealership. However, you must ensure that you've done your checks on the company you're applying with online, to make sure they're reputable and regulated.

Make sure you do your research and use a lender with specific details on their website, such as offering a way to contact them. Avoid any websites that ask for things like a “loan lending or credit fee” – you should never have to pay to apply for finance online.  

Check reviews from other customers, and make sure that you're comfortable with the level of customer satisfaction before you sign on the dotted line!

There’s no doubt that applying for car finance online is a faster way to do things, you can save time on the actual application, but also find the right lender at your own pace and compare multiple options. And when using Carmoola, you’ll get a decision in just a few minutes. Download our app and get your dream car today! 😍🚙