How Long Does It Take To Get a Decision on Car Finance?
You’ve got your dream car perfectly painted in your mind - you can even smell the brand-new interiors and feel the crisp steering wheel under your grip.
Now all you need is the finance to get it.
Car finance makes getting your dream car a reality, but how long does it take to receive your funds?
In our latest blog, we explore how long it takes to get a decision on car finance.
How Long Does Car Finance Approval Take?
The approval timeline for car finance can vary quite a bit. For many traditional lenders, the process can be a bit...let's say, drawn out.
You could be looking at days or even weeks to receive a decision. This is because with traditional finance, there are back and forth telephone calls and paperwork to fill out.
If you’re looking for a speedier process, we can help. At Carmoola, we've streamlined everything to get you on the road faster.
Applying for car finance with us is a breeze. It's all taken care of online, with no paperwork or phone calls to deal with.
With us, you can get a budget in 60 seconds. Yep, you read that right!
Car Finance Approval Process
The approval process can vary between lenders. For example, local dealerships might need you to visit them in person to fill out paperwork.
Online dealerships, on the other hand, ask you to pop in your details, submit, and wait for your approval. Paperwork can either be filled out online, or it may be sent to you.
Then there is Carmoola – the first fully online car finance provider that doesn’t require phone calls or paperwork. We provide almost instant car finance to suit most circumstances.
With each option you will need to undergo a credit check. This is a fast process that typically takes less than a minute.
Other Decision Factors
Though credit checks and your finances are a big part of car finance applications, other factors also come into play.
Proof of Identity
Typically, car finance providers will ask you to submit copies of your driver’s licence as proof of identity. Some may also ask for additional IDs like a passport.
Your Complete Address History
Lenders may ask for your address history for the past three years, as well as proof of your current address such as utility bills.
Proof of Income
Depending on your current situation and which lender you apply with, you may be asked for proof of income. This is to make sure you can pay your instalments every month.
You may provide bank statements covering the last three months, but some companies may want payslips and employers’ details too.
If you are self-employed, you will need to be able to produce evidence of your income either with your bank account, or an SA302 from HMRC.
Your application could be rejected if the lender has reason to think you can't afford the monthly repayments.
You can use our free car finance calculator if you need help in determining what kind of loan you can afford.
Tips for Quick Approval
If you want to receive the finance you need quickly, here’s some tips to help speed it up:
Submit All Required Documents
Lenders will only be able to evaluate and approve your loan once you’ve sent them the correct car finance documents.
It helps to have all your documents on hand before you apply so you’re ready for the whole process.
Apply Early in the Morning
Some lenders will offer same-day approval, but only if you apply by a certain time.
If you apply outside of the specified time, you may find your application gets buried by newer ones.
Check Your Eligibility
One of the most common reasons applications get rejected is eligibility. You need to check whether you qualify for the finance before you apply.
Each lender has different requirements so before you apply, make sure you check the following:
- Whether you fit the lender’s minimum income requirements
- Whether your credit score is good enough
- If your lender will accept your type of vehicle
- Whether your employment status is catered for by your lender
Car Finance Bad Credit Instant Decision
Instant decision bad credit car finance takes away the stress of having to wait for approval.
They are typically provided by lenders that are open 24/7 and have fast, swift, and seamless processes in place to guarantee you an instant decision.
With Carmoola instant car finance, you’ll get a decision within just 60 seconds. Once approved, you'll also know how much your budget will be.
We do car finance minus the hassle, with no stressful waiting times, and no sales reps putting you on hold for ages. It’s all within our app, and it’s easy, simple, and fast to apply! 💎
Read more about getting a decision on car finance:
- How Are Car Finance Decisions Made?
- What if My Car Finance is Approved but Later Declined?
- Can I Appeal a Car Finance Decision?
FAQs About How Long It Takes to Get a Decision on Car Finance
Do car finance approval times vary based on credit scores?
Car finance approval times can vary based on credit scores. For example, applicants with higher credit scores may receive faster approval as they represent a lower risk.
However, other factors, such as the lender's workload and processes, can also influence timing.
How can I speed up the car finance approval process?
Ensure you provide all the necessary documentation accurately and promptly. Choosing lenders known for quick approvals, like Carmoola, can also help speed up the process.
Are there lenders that offer immediate decisions on car finance?
Some online lenders and platforms can give decisions within minutes, though "immediate" might still mean a short waiting period.
Does credit score affect car loan?
Your credit score can influence both the approval decision and the interest rate you're offered. Higher scores often lead to more favourable loan terms and faster decisions.