If yes, your search ends here. Now, you can arrange finance to buy used car as well. Moreover, whether you are a homeowner or tenant, it won't be an obstacle in availing the loan, as used car loans for tenant are also available in the loan market.
Used car loans for tenant are meant for all kinds of tenants. It includes council tenants, housing association tenants, MOD tenants, private landlord tenants, living with parents, housing executive tenant etc.
Used car loans for tenant can be financed for any types of used car. But, one should make sure that the car, which he wants to buy, is not more5 year old, as arranging finance for more than 5 years old car can be tougher.
Usually, used car loans for tenant are categorized as an unsecured loan. Therefore, there is no requirement of pledging anything to secure the borrowed amount. This is a positive aspect of these loans, as borrowers do not need to face the risk of collateral repossession.
However, some basic requirements are there, which a tenant has to fulfill in order to avail used car loans for tenant. Let's have a look at these requirements.
•A fulltime employment along with a regular and recurring income is necessary
•The minimum age limit of borrowers should not be less than 18 years.
•Borrowers' income should be at lest ₤1200
•A valid residential as well as identification proof is also included in this list.
With used car loans, a tenant can avail the amount, ranging from ₤5000-₤25,000. Normally, borrowers' monthly income as well as credit score is taken into account while deciding the borrowed amount. The borrowed amount decides the repayment period of used car loans for tenant. But generally, it varies within 5-10 years.
Now let's discuss about the interest rate of these loans. As, a tenant can avail used car loans without any collateral, hence lenders charge a higher interest rate on these loans, by which, they want to cover the risk of lending money. But do not worry about that. Some efforts can assure you about getting a better deal.
If you have good credit score, you will get some extra edge in getting these loans at an affordable interest rate. In such cases, borrowers' credit score assures lenders about their credibility and due to this reason, lenders do not hesitate to offer a competitive interest rate to them. Besides, borrowers are advised to wander around for a better deal. It will enable them to grab used car loans for tenant with flexible terms and conditions.
