How Long Does Car Finance Approval Take? A Clear Guide

Buying a car is exciting, but securing car finance can sometimes feel overwhelming. Understanding how long car finance approval takes can help you plan better and avoid unnecessary delays.

At Carboom car finance approval usually takes between one and two business days, but some lenders give a decision within 24 hours. The exact time depends on the lender and how quickly you provide the necessary details.

Before you can finance a car, the lender checks your credit history, income, and expenses to ensure you can afford the loan. If everything is clear, approval happens quickly. If details are missing or incorrect, it may take longer. Checking your information before applying helps avoid delays.

What Checks Do Lenders Carry Out for Car Finance?

Lenders need to confirm that you can afford the repayments and meet their requirements. To do this, they carry out a few checks before making a decision.

What Lenders Look At:

• Soft Credit Check – A quick look at your credit history that does not affect your credit score. It helps lenders see if you might qualify.
• Hard Credit Check – A full check of your credit report. This leaves a record on your file, so too many in a short time can make future borrowing harder.
• Affordability Check – A review of your income, expenses, and other financial commitments to see if the loan is manageable.
• Identity and Fraud Checks – A way for lenders to verify your details and make sure there is no risk of fraud.

If you have a poor credit history or little credit history at all, passing these checks might be more difficult. Some lenders specialise in finance for people in these situations.

Is It Difficult to Get Approved for Car Finance?

Approval depends on your credit profile and financial situation. If you meet the lender’s requirements, getting car finance is usually straightforward.

To improve your chances:

• Make sure all details on your application are correct and up to date.
• Check your credit report for mistakes or incorrect information.
• Show a stable income and employment history.
• Avoid making multiple applications in a short time, as this can lower your credit score.

Different lenders have different rules, so being declined by one does not mean you cannot get finance elsewhere. A broker can help find a lender that suits your situation.

Can You Get Car Finance with Bad Credit?

A poor credit history does not always stop you from getting car finance. Many lenders offer options for people with low or limited credit scores.

How to Get Car Finance with Bad Credit:

• Find a Specialist Lender – Some lenders work with people who have bad credit.
• Use a Guarantor – Someone with a better credit history can back your application to give the lender more confidence.
• Pay a Higher Deposit – A larger deposit means borrowing less, which makes approval more likely.
• Improve Your Credit Score – Paying off debts and keeping up with bills helps build your credit over time.

Before applying, compare options and check that the repayments fit your budget. Interest rates may be higher for bad credit finance, so make sure you can afford the deal before committing.