Car Loans

The Current State Of The Car Loans Business In The U.K.

The car loans business in Britain is now much more vibrant, thanks to the end of the government’s so-called scrappage scheme, which encouraged drivers to trade in their old vehicles for new ones in return for getting huge discounts from car dealerships. The scheme was put in motion in May 2009, as part of the country’s environmental drive to lessen carbon emissions.

There was a £2,000–discount awaiting car loans finders willing to bite into the car trade in scheme, and for a while there, it artificially boosted car sales in the U.K. until the scheme’s demise. However, it did not work too well for the car loans business because most car dealerships had to forego the equally attractive zero interest rate option in order to be able to offer the scheme’s discount. With the scheme gone, British local media have been reporting a substantial drop in new car sales for up to nine percent across the board.

For shrewd car loans seekers, however, the current situation presents a unique opportunity that would be hard to pass up. After all, who among these car loans seekers can resist zero interest rate financing. The door is now wide open, and with car dealers acutely aware or perhaps even scared of the vehicular sales slump, they are more likely to give in to a customer who has less than perfect credit history.

However, it is not the end of the world even if zero financing is not within one’s grasp, after all, there is the so-called secured loan. It requires collateral like the lender’s car, or a house in exchange for getting a much lower interest rate than is available in the open market. The collateral gives car loans lenders the assurance that they are getting something in case of car loans default. The other type of car loans is of course the unsecured variety, which as anyone can guess, does not require collateral, yet the interest rate would be much higher. How much such interest rate could go down in this situation depends on many factors. These are market forces, the lender’s financial influence, and the borrower’s credit rating as well as his or her determination to bring the rate down. The fact is, there are good and bad car loans negotiators. Some are born good negotiators, while others acquire the expertise from experience. Thus, people who are new to the car loans psychology are better off consulting someone who is knowledgeable or an expert on the matter. These people usually have a vast knowledge of the financial sector including car, home loans etc.

In summary, people who are interested in car loans in the U.K. market are likely to be dangled the zero interest stick by car sales representatives now more than ever. While there is no 100 percent assurance, there is at least more chance for a skilled car loans negotiator to get the better end of the deal, or if not, go for the win-win situation which is finding the best cheap loans.

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