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Frequently Asked Questions

1.   How Does It Work?

Vendor Finance is a broker, not a lender, and as such, we work with several finance companies. This allows us to try get your finance application approved with the most suitable lender for your circumstances. Many factors are taken into account when determining which lender we use for your application - some being the age of the vehicle, your credit history, financial position and/or which car dealer you wish to purchase through. We typically submit your finance application to the lender fully supported with all the relevant financial documentation the lender requires. This documentation can include bank statements, payslips and/or copy of drivers licence.   

Vendor Finance will always send in all required financial information with your application. This allows us to speed up the credit underwriting process and enable the underwriter to make a fully informed decision upon initial review.

 

2.    How Long does it take?

With our main lender, the credit process typically takes 3-4 hours once all the relevant information is supplied. Sometimes, a decision comes back sooner than that and other times, it may take a little bit longer, depending on whether the Lender requests additional information from you.  

Each lender operates their own credit policy and turnaround times can vary from lender to lender.

 

3.    Can I buy from any car dealer?

Just like each finance company has its own credit policy, they also each have their own panel of car dealers which they will accept invoices from. Vendor Finance removes all the guesswork for you and will only submit your finance application to a finance company who will accept invoices from the dealer you wish to purchase your car from.

 

4.    Can I buy the vehicle privately?

Finance Companies will not underwrite finance applications for private car sales. This is primarily because you are protected by the Sale of Goods and Supply of Services Act 1980 when buying a car for your personal use from registered car dealers. This legislation does not apply to private sales.  Furthermore, many car dealers now offer limited warranties with your car purchase, which are not available with private car sales.

 

5.    Can I buy in Northern Ireland/UK?

Finance Companies will not underwrite car finance applications for cars invoiced from Northern Ireland or the UK. This is because of the many additional factors involved such as the exchange rate, the VRT element (which must be paid after the car is purchased outside the jurisdiction) and the lack of warranty from NI/UK dealers selling into the South of Ireland. You can read our blog post all about buying imported cars to get more information on purchasing UK/NI cars.

 

6.    How much can I borrow?

€5,000 is generally the minimum borrowing amount, with no upper limit. Credit underwriting criteria usually depends on many factors such as repayment capacity, account management, equity/deposit in the transaction, year/age of the car and previous credit history obtained through an Irish Credit Bureau search.

 

7.    Do I need a deposit?

We work with a wide range of finance companies that cater for all types of finance - ranging from a minimum 10% deposit/equity to 100% finance.

 

8.    Poor Credit/ICB Issues:

Finance Companies will generally run an Irish Credit Bureau (ICB) check for all customers as part of their underwriting process, with applicants showing a poor ICB history being automatically declined. We work with one lender who will consider poor ICB histories once the reason can be genuinely explained and the customer’s current financial position supports the application. Customers can get a copy of their own Irish Credit Bureau report by clicking on the link.

 

9.    Age Limit on Cars:

Each Finance Company has its own individual credit policy concerning the age of vehicles it is willing to finance. Vendor Finance will go through all available options with you at the time of your application.

 

10.   Can I make a lump sum payment or settle off the finance agreement early?

Again, each Finance Company has its own individual policy concerning these options and Vendor Finance will go through the options available from the lender who approved your finance application. Early settlements are generally calculated  using the internationally accepted “Rule of 78”, and the actual cost can vary from one to three months’ interest.

 

11.    Do I need Bank Statements?

Very often bank statements are required to support your finance application as they are used to illustrate your ability to repay the loan, how you manage your account and also to verify your income, where it is mandated to the account.  If you bank online, the finance companies generally accept downloaded e-statements, in .pdf format, that clearly show your name and address - and which you can email to us.  Lenders will not accept statements that have been photographed with camera phones, screenshots from your mobile banking app or statements in excel format.   If you do not bank online, then you can send us a copy of your bank statements via the post or by fax.  

 

12.    Are there any other fees or charges?

Finance companies generally have documentation fees on commencement of the finance agreement and purchase fees with your last instalment. These charges vary from finance company to finance company, but Vendor Finance will explain all fees before you drawdown your finance.

 

13.    Does Vendor Finance charge a fee?

Vendor Finance provide our services to you free of charge.  For arranging the finance on their behalf, we receive a commission directly from the finance company.

 

14.    Anti-Money Laundering Documentation:

Finance Companies are required to verify your identity before funds are released. They do this by inspecting a copy of your drivers licence or passport (which must be within expiry date) and a copy of a proof of address,  dated within three months (e.g. a copy of a recent utility bill, bank statement or other official document clearly showing your name and address)

 

15.    Married Surnames:

Customers who may have a double surname such as Mary Kelly Smith may have to provide a marriage certificate if their Identification and Proof of Address does not match. For example, a Drivers Licence in the name of Mary Kelly and a Proof of Address as Mary Smith would require a marriage certificate.

 

16.    How do I get started?

All you need to do is fill in your details on the Vendor Finance website, and one of our representatives will be in contact with you to process your car or commercial finance application.

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