Have you seen those ads that offer guaranteed car finance? Have you been approached by a car dealer promising you’ll be approved for a car loan? Believe what they said?
We hope not.
No car dealer can guarantee you’ll be accepted for a car loan. Even if they are using in-house finance, it’s up to the lender and not the dealership.
We hold one phrase dear to our hearts. ‘Never make promises you cannot keep’. Guaranteed car finance is one of those promises you cannot keep which is why we never use the term.
Guaranteed car finance
The authorities are cracking down on guaranteed car finance promises but there are still those out there promising it.
The car dealer does not agree the finance, the lender does. Even if it’s in-house, the loan will be underwritten separately from the sales department.
The process works a little something like this:
- You find a car and work out a deal with the sales person
- They contact the lender or underwriter to approve the loan
- The lender or underwriter approves it and only then can the deal proceed
Only when the car loan has been agreed by the lender or in-house underwriter can the deal go ahead. The sales person has nothing to do with approving or otherwise.
They can help, offer advice on your application and be of assistance but they cannot make the final decision.
It is this way for a reason and guaranteed finance scams are one of those reasons.
What can you guarantee?
We cannot guarantee a lender decision. What we can guarantee is to only use reliable lenders. We can also guarantee to represent you fairly and accurate to those lenders. We can guarantee to work on your behalf to find the most suitable loan for your situation and ensure you understand exactly what you’re getting into.
We also guarantee that we will be straightforward and honest with all of our dealings with you.
Everything else is out of our hands.
Thankfully, guaranteed car loans are becoming fewer and far between but they are still out there. We hear of them all the time.
Hopefully now you will know enough to walk on by when you see an advertisement for such a deal or put the phone down if you’re called.
It’s certainly what we would do!