Guaranteed car finance - are consumers being duped by false promises?

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moneybarn, the UK's leading bad credit car finance company denounce irresponsible lending promotions and advise caution when consumers are looking for guaranteed car finance or dealers.

bad credit car, guaranteed car finance, poor credit car finance

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..more often than not, the guaranteed car finance with bad credit offer is just a marketing gimmick that can’t be backed up.

moneybarn, the UK's leading non-prime car finance company have today published a warning for vunerable consumers who are being misled into believing that they can be offered guaranteed car finance.

A quick search online for guaranteed car finance or guaranteed car finance with no credit check and you’ll find lots of websites promoting this kind of service to consumers who are perceived to have bad credit.

In moneybarn's warning, the company has recommend consumers look carefully at these kind of promotions before making any application, especially as these offers are often made by companies who don’t actually lend money themselves, but work as third party introducers or affiliates. In short, the companies most likely to make these claims don’t actually control any money or set the lending criteria, so more often than not, the guaranteed car finance with bad credit offer is just a marketing gimmick that can’t be substantiated.

More important than this is the legal aspect of this kind of promotion. The Consumer Credit (Advertisements) Regulations 2010 clearly state that making offers of guaranteed finance is not permitted unless the offer is truly without condition. Adrian Leaman, moneybarn's marketing lead describes how this is being breached by unscrupulous advertisers,

"If you look closely at the organisations that claim to offer guaranteed car finance, there will always be some kind of criteria that needs to be met - whether this is being in employment, being over a certain age or having a monthly income above a set amount. This can hardly be described as guaranteed finance in any shape or form, and before putting your credit file at risk with an unncessary credit search, moneybarn would urge consumers to think carefully before applying on the basis of any such guarantee."

Finally, moneybarn warn consumers to be careful about 'tied' finance deals that are often advertised as part of guaranteed car finance promotions, where bad credit car finance is only offered on cars supplied by the advertiser. These often result in customers paying dramatically over the odds for both finance and the car, leaving vunerable customers with a high probability of being in a negative equity scenario should their circumstances change and the car need to be sold.

moneybarn doesn't claim to offer car finance with guaranteed acceptance, but a genuine next best alternative which is a range of car finance rates depending on a customer's overall circumstances. More than just a look an individual credit score, moneybarn also take into account factors such as the cars customers wish to buy, levels of debt, how affordable the loan might be in the short and long term and address and employment stability.

Shamus Hodgson, Commercial Director at moneybarn explains further, "The result of our unique approach is that we have one of the highest acceptance rates in the industry. We’ll consider offering car finance for customers who have been through IVAs or are ex-bankrupts, or have CCJs and defaults – what matters to us is the ability to repay your car finance now and in the future and we don’t judge people harshly for what has happened in the past."

About moneybarn
moneybarn creates more opportunities for more consumers to finance the purchase of cars with a responsible, ethical and inclusive approach to car finance. With over 20 years experience of working with customers with unusual and non conforming backgrounds who may have experienced difficulties obtaining credit elsewhere, moneybarn is the UK’s leading specialist car finance provider. More information can be found at http://www.moneybarn.com
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Adrian Leaman

Shamus Hodgson
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