Need a car but the bank said no? Here is how you can get car finance approval without a deposit!

Need a car but the bank said no? Here is how you can get car finance approval without a deposit!

Car loans…. Who would have imagined how hard it can be to get approved! Having a few minor marks against your credit file could result in a big fat “DECLINED” stamp on your application. If this has happened to you, there is still hope! Don’t give up on your new wheels just yet! Below we explain how our team at Unicorn Auto can help you get across the line and into a new car, plus 5 tips on how to make sure you get approved!

How Unicorn Auto can help you get used car finance!

Unicorn Auto is a registered finance brokerage with access to over 30 lenders! We have our own team of dedicated brokers that work with the lenders to get our clients approval and the best finance rate available to them. We also have our own used car dealership for our approved customers to shop from, plus we source vehicles if our customers have something special in mind. This is how we can help Single Parents, Pension Holders, ABN holders, Casual Workers as well as those with Bad Credit Ratings get approval for car finance.

How does car finance though Unicorn Auto work?

It is simple and all done online in 10 minutes!

  1. Apply via our website and submit required documentation
  2. Once approved, choose the vehicle you want
  3. Collect your car and drive away or we can help organise transportation if you’re interstate!

If your application is not approved, we will send you weekly or monthly emails to coach you until you are eligible!

5 tips and solutions to prepare for a car finance application

1. Minimise ATM cash withdrawals and excessive gambling:

Make sure you stop withdrawing cash for savings straight away, even if you are using that cash for savings! Lenders can now easily calculate the percentage of income being withdrawn at ATMs and lenders often view cash withdrawals negatively as gambling, even if you are just putting it aside as savings.

How else can you put money aside to save?

Rather than withdrawing cash to budget or save, open a separate bank account and limit access, e.g. Do not activate a Debit card for the account. Online banking and immediate transfers between accounts makes it simple to create multiple accounts for a variety of uses. As an example, have a ‘rainy day fund’ for savings or an ‘everyday’ account for general living expenses. This shows lenders your capacity to manage your everyday expenses, savings and existing commitments, whilst also accounting for all income in your bank accounts.

2. Prevent dishonours on bank statements and financial commitments

When applying for additional finance, it is important to show good repayment history with lenders on existing financial commitments. Consistent dishonours on your bank statements shows lenders an inability to manage your funds effectively.

But what if dishonours are out of your control?

Sometimes these dishonours are out of your control and most lenders are aware of this; so, if you find yourself in a situation where you could miss a payment, it is always best to contact the lender prior to the drawing date and attempt to organise a resolution. Credit assessors would prefer to see clients organise ‘make up’ payments rather than dishonour and avoid the problem, burying their heads in the sand!

3. Avoid using payday loans for everyday expenses

Payday loans are a quick and easy solution for finance; however, they end up hurting borrowers with high interest and large ongoing repayments. Payday loans may be a viable option for unexpected emergencies or unforeseen financial situations, but they will have an adverse effect on your credit rating and chances at finance for the future.

But what if you don’t have enough money available for my commitments?

If you are struggling financially with your ongoing commitments, look into the possibility of obtaining a consolidation loan to manage your repayments and get on top of your financial situation.

Lenders will look unfavourably at the use of payday loans to facilitate general living expenses and could mean the difference between declining and approving your application.

4. Avoid high volume of bank transfers

Some borrowers prefer to siphon funds from different accounts on a daily basis for existing repayments and general living expenses. Not only does this behaviour run the risk of dishonouring on financial commitments, but also makes it difficult for lenders to track your bank statement activity. The easier it is for lenders to evaluate the inflow and outflow of income and expenses, the faster they can reach an assessment decision.

How should you manage your bank accounts?

Try and keep your bank statement activity as clear and concise as possible so lenders can reach a decision without any degree of ambiguity. Simply put, try keep your money in the one account as much as possible.

5. If you are uncertain about your chances of finance, ask for advice!

If you have any questions about your borrowing capacity or how your application might look to a potential lender, it is always best to consult a broker!

Our team of Brokers at Unicorn Auto will help to find you a potential lender that will assist with your funding requirements or give you advice that will improve your financial application for the future. We will even give you free financial coaching with regular reminders emailed to you to help keep you on track!

Get Car Finance Today with Unicorn Auto

If you are needing car finance, simply fill in our Finance Application form online today! Or if you have any questions, contact us today.

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