Car loans

If you’ve started an application already, it’s easy to pick up where you left off.

As a lender, we have a responsibility to act fairly and as part of this we have committed to follow the Standards of Lending Practice. This note sets out some of our key responsibilities and what we ask of you, to ensure that the relationship works well for both of us.

• We will lend responsibly and aim to provide a product that is affordable for you.
• We will provide you with information about our products and services and how they work, in a clear and understandable way, so that you can decide what’s best for you and your needs.
• We will endeavour to make sure our products and services offer, wherever possible, the flexibility to meet your needs.
• We will treat you fairly and reasonably at all times and make sure that you are provided with a high level of service.
• If you tell us about any inaccuracies, for example around the personal information we hold about you, we will act quickly to put it right.
• We will always aim to help you if we see, or you tell us, that you are having trouble financially. We will seek to understand your overall circumstances, try and identify options that you can afford and where appropriate, provide a reference to free debt advice.

What we ask of you

• We ask you to think carefully about whether you can afford to repay the money you want to borrow and to be open in your dealings with us.
• Take care of any cards, PINs, online log-in details and other security information to help prevent fraud and help us to protect your accounts.
• Tell us as soon as possible if your card has been lost or stolen, or if you know or suspect someone is misusing your confidential information e.g. your PIN or online log-in details.
• Carefully check your account statements to make sure they are accurate. If anything isn’t right, please get in touch with us.

Please let us know if

• Your contact details change, so we can keep our records up to date.
• Your circumstances change, particularly if what’s happened is likely to cause you difficulties in managing your account or financial problems.
• You think that you won’t be able to keep up with your repayments. The sooner you do this, the more likely it is we’ll be able to find a way to help you.

We would also encourage you to refer to the terms and conditions associated with your current account, credit card or personal loan.

Like many people, your budget and the car’s price are likely to be the main deciding factors when buying a new car. So, once you’ve chosen the type of vehicle that’s best for your lifestyle – whether that’s a coupe, an estate or a 4x4 – you should consider the engine size and fuel type. These are the things that’ll determine the day-to-day running costs.

You could also speak to friends and family to get an idea of how reliable their cars are.

Once you’ve done this, you can gear up your search, either in the car showrooms and forecourts, or online.

When you’ve found a car that looks promising, you should arrange to see it and inspect it thoroughly – both inside and out. It helps to bring along a friend or family member for a second opinion.

It’s also a good idea to write down the vehicle identification number and V5 serial numbers, and check them online to make sure they match the DVLA’s records.

If you take a note of the licence plate, you can find out more about the car’s history by getting an HPI check online. This will tell you whether the car has ever been stolen, written off, had altered mileage or if there’s any outstanding finance.

You should check the paperwork carefully – look for original versions of the V5 registration document and the MOT certificate. Do the seller’s details match the registration document exactly?

Finally, take the car for a good test drive, for at least 30 minutes. No matter what a seller says about the condition of the vehicle, you need to try it for yourself.

Unless you really know your motors, understanding how much a used car is worth isn’t easy – but it doesn’t have to be guesswork.

Trading in

If you’re trading in your old car, you’ll want to get the most money you can, so being prepared for negotiations is key. Get a free trade-in valuation of your car online – before letting the dealership tell you how much it’s worth. You can use this valuation as leverage.

Pricing and selling your car

If you’re selling your car, you’ll want to make sure you choose a fair price for it. Setting the price too low will, of course, lose you money – but setting it too high will lose potential buyers’ trust, or may mean your car is overlooked entirely.

Start by getting a free online valuation, and then find other ads for your car’s make and model for comparison.

Unless you’re a cash buyer, there are 4 main ways to pay for a new or used car:

• Hire purchase (HP)
• Leasing
• Personal contract payment (PCP)
• Bank loan