If you’ve been involved in car buying and selling, you may be familiar with how car financing works. But for first-time car buyers and buyers that are new to the option of financing a car, the process may seem slightly overwhelming. CMH Carshop understands your concerns and has highlighted some of the most important steps in the car financing process, so you can be prepared when deciding to finance your new car.

Buyers may choose vehicle finance as a cost-effective alternative to purchasing a vehicle with cash. The concept of car financing is similar to that of a personal loan; therefore some of the same requirements are needed for the vehicle finance application process. It’s always best to have your finance arranged by the dealership from which you plan on purchasing your car. This is because dealerships may offer you a much better rate on your repayments than you’d receive from a bank or external financial lending institution – so that they can retain you as a customer.

CMH Carshop offers compelling car financing solutions for buyers looking to purchase new or used vehicles. Call us on 0861 CARSHOP (0861 227 7467) for a free consultation.

How the car financing process works

So you’ve found the car that you’ve decided to purchase. The next step to acquiring your new car is mastering the car financing process by being prepared. Continue reading for a guideline on how the car financing process works.

Apply – Whether applying at a car dealership or online retailer such as CMH Carshop, or at a third party bank, the first step to car financing is completing a standard application form. Car financing application forms will ask that you provide the financier with your personal information, employment information and a basic summary of your monthly expenses. This way, when evaluating your application, the financier will have a solid foundation to determine whether you qualify for car finance.

Provide relevant documentation – As part of your application, the financier may ask you to provide copies of your personal documents to confirm that the application is valid and not fraudulent. You will need to present your driver’s license and/or Identity Document, three of your most recent pay slips, a bank statement and proof of residence (e.g. a telephone bill addressed to you at the home address provided in your application form). You need to have a valid driver’s license in order to apply for car financing.

Await feedback – After you’ve completed the application for car financing, specified the total loan amount you wish to receive and provided all relevant documentation, you have finished phase one of the car financing process. Thereafter, a consultant will contact you to inform you as to whether your application was successful. You will have to wait at least three working days for notice – so that enough time is available to review your application adequately.

CMH Carshop: car financing that works for you and your budget

At CMH Carshop, we pride ourselves in our competitive car financing rates. Furthermore, we provide our customers with a selection of the best cars on the market with impressive car financing and insurance packages. By applying online or simply calling us directly on 0861 CARSHOP, you can get the finance you need to purchase your ideal car.