Before you apply for a loan, it’s important to know what’s involved. A personal car loan, also known as an unsecured personal loan (UPL), allows you to borrow money with a fixed interest rate, without the need to put a hefty deposit towards the car you’ve got your eye on.
Unlike other types of car finance, buying a car with a UPL means you’ll own the car from the very first day. This is the go-to choice if you don’t plan on changing your car often and you have a good credit score, as approval can be slightly stricter than with other forms of financing.
Applying for a UPL is easier than you might think! You decide exactly how much you need to borrow – Oodle will lend you anywhere from £2,500 to £35,000, for example – and then apply directly to your lender of choice.
Okay, so you’ve been approved for a personal car loan – brilliant! But how do you actually receive the money?
When you get a UPL, the money is usually sent to you via a process called disbursement. Once your loan is approved, the funds are typically deposited directly into your bank account. This means you can access your money quickly and easily, ready to use for buying your new car.
Here’s how it works:
Approval: After you apply for the loan and it gets approved, you’ll be given the good news.
Verification: Before sending the money, your lender will double-check all your details to make sure everything is correct.
Disbursement: Once everything is verified, the loan amount is transferred directly to your bank account.
Direct deposit into your bank account is the most common method because it’s fast and convenient. You get the money without any hassle, and you’re ready to buy your car right away.
While there might be other methods, like a cheque or even paying the car dealership directly, a direct deposit is usually the quickest and simplest way to get your loan funds. So, when you’re ready to finance your new car, you can count on the money being available in your bank account, ready to go when you need it.
As we’ve mentioned, while direct deposit is the most common method, there are other ways to receive your personal loan funds.
Cheque
Your loan can be issued as a cheque, which you can deposit into your bank account. This method provides a physical record of your loan disbursement, which is handy for keeping track. Remember though, it’s a slower way to receive your loan as you have to wait for the cheque to arrive and clear.
Direct payment to the dealer
In some cases, the loan amount can be sent directly to the car dealer. This simplifies the process by sending the funds straight to your purchase. However, you won’t have immediate access to the cash, which can be limiting if you need to cover other expenses related to buying your car.
Each method has its pros and cons. Cheques are tangible but slow, while direct payments are convenient but limit your control over the funds. So, if you prioritise a speedy loan process and control over your funds, opting for direct deposit means both boxes are emphatically ticked!
A few things can impact when you’ll receive your personal loan. The most common reason a loan may be delayed is how quickly – or slowly – you provide the necessary documentation and how accurate the information is.
Sometimes, delays happen if there are mistakes in your application or if your lender needs extra verification. For example, if there’s a mismatch in your details or missing paperwork, this will need sorting out before you can move forward. Bank processing times can also play a part.
To keep things moving smoothly, double-check your details and send in everything you’ve been asked for as soon as possible. That way, you’ll receive your personal loan quickly and be ready to buy your new car without any hiccups.
Once your loan has landed in your bank account, it’s time to put that money to good use and manage it wisely! Here’s how to make sure everything goes smoothly:
First, use the funds for their intended purpose – buying your new car. This keeps you on track with your financial plans right from the beginning and ensures you’re making the most of your loan.
Next, create a budget to manage your loan repayments alongside your regular expenses. Make sure you know when your payments are due and set reminders to avoid missing any. This will help keep your credit score in good shape and demonstrate your reliability.
If you have any leftover funds after making that all important purchase, think about putting them to one side for future car-related expenses, such as maintenance, insurance or unexpected repairs. Being prepared for these expenses can save you a lot of stress and financial juggling down the road.
Lastly, be sure to regularly check your bank account to track your spending and ensure everything is going as planned. By staying organised and proactive, you can enjoy your new car and keep your finances in check.
Ready to finance your new car?
We’re here to make financing your car as easy and stress-free as possible. With competitive rates, flexible terms and a friendly team ready to help you, Oodle is the smart choice for car finance. Whether you’re upgrading or buying your first car, we’ve got you covered. Get a quote today (representative APR 16.9%) and drive away with confidence.
