If you're dreaming of cruising down the road in a new car, Close Brothers Motor Finance might be your key to making that dream a reality. Understanding how to secure finance from this company can significantly streamline the car buying process, making it less stressful and more enjoyable. In this extensive guide, we'll walk you through the ins and outs of Close Bros Motor Finance, including how to apply, what to expect, and tips to maximize your chances of approval.
What is Close Brothers Motor Finance?
Close Brothers Motor Finance is a division of Close Brothers, a renowned financial services company with over 140 years in the industry. Specializing in motor finance, they provide loans to help individuals purchase new or used vehicles. Here's why you might consider Close Bros for your car finance:
- Reputation: Close Brothers has built a solid reputation for reliability and customer service.
- Competitive Rates: Often, the company offers competitive interest rates compared to other lenders.
- Flexibility: They cater to various credit profiles, offering both PCP (Personal Contract Purchase) and Hire Purchase options.
- Quick Processing: Application to approval can be swift, making the car buying process smoother.
🏎️ Note: Always compare offers, as your circumstances might align better with another lender.
How to Apply for Close Brothers Motor Finance
Applying for finance through Close Brothers is a structured process designed to be user-friendly. Here's a step-by-step guide:
1. Choose Your Car
Start by selecting the car you want to buy. This could be from a dealership or a private seller, but Close Bros often deals directly with franchised dealers.
2. Review Your Credit Report
Knowing your credit score before you apply can save you from a potential disappointment. Check your report for errors and take steps to improve your score if necessary.
3. Application Process
The application can typically be done:
- Online: Fill in an application form on Close Brothers’ website, or through a dealer’s website linked to Close Brothers.
- At the Dealership: Visit the dealership, discuss finance options, and complete the application with their assistance.
When applying, you'll need:
- Your ID or passport
- Proof of address
- Bank statements or salary slips
- Details about the car you want to buy
4. Approval
Close Brothers typically performs a credit check and assesses your application. If approved, you'll receive:
- An agreement in principle
- Interest rates and monthly repayment estimates
5. Finalize Your Deal
Once approved, you'll sign the finance agreement, and the car purchase can proceed.
Types of Car Finance Available
Close Bros provides several finance options:
Hire Purchase (HP)
- You pay a deposit, then make monthly payments until you own the car outright.
Personal Contract Purchase (PCP)
- This involves lower monthly payments with an option to buy the car at the end of the term or return it.
Lease Purchase (LP)
- Similar to PCP, but with the potential for a larger balloon payment at the end.
đź’¸ Note: Carefully consider your budget and usage to choose the best finance type for you.
Tips for a Successful Application
To enhance your chances of getting approved:
- Boost Your Credit Score: Pay off debts, reduce your credit utilization, and ensure no late payments.
- Save for a Larger Deposit: A bigger down payment can reduce the financed amount, potentially lowering interest rates.
- Know the Car: Research the car you want thoroughly. Dealers and lenders appreciate a well-informed buyer.
- Be Honest**: Disclose all financial commitments and check details before submitting.
Key Considerations
Interest Rates
Close Brothers offer competitive rates, but these can vary based on your credit score, the car’s age, and finance type.
Early Settlement
If you decide to pay off your loan early, check the terms. Some lenders charge an early settlement fee, although this isn’t always the case with Close Brothers.
Optional Extras
Be cautious of optional products like extended warranties, gap insurance, or maintenance packages. These can increase monthly payments or the financed amount.
Frequently Asked Questions
What documents do I need to apply for finance?
+You'll typically need ID, proof of address, income verification (like bank statements or payslips), and details of the car you want to finance.
Can I get finance if I have bad credit?
+Yes, Close Brothers does consider applications from individuals with lower credit scores, but approval might depend on other factors like income, deposit, and the car's value.
How long does it take to get finance?
+Once your application is approved, Close Bros typically processes it quickly, often within the same day or next business day.
To wrap up, Close Brothers Motor Finance provides a pathway for car ownership, catering to a broad range of credit profiles. Whether you’re looking to finance a new or used car, understanding the nuances of their process, comparing your options, and applying for the right finance type can help you drive off in your dream car with confidence. Remember to evaluate the car’s value, negotiate terms, and always read the fine print to ensure you’re making a well-informed decision.
