Approved Car Loans

How do you turn your cash into a car?

Once you've been approved car loans usually transfer the money into your bank, or send you a cheque. That's not always ideal, especially if you're buying a car from a dealer. You may need to get your bank to create a Banker's Draft, a kind of super-cheque.

How do you pay for a car when you've borrowed the money? When you've been approved car loans usually transfer the money directly into your bank account, or send you a cheque. The latter option isn't ideal if you're in a hurry, because you'll have to wait three or four days for the money to clear. You'll also find that in many cases, dealers won't let you pay with a big cheque: they might ask for a Banker's Draft, a kind of super-cheque issued by your bank. Getting a Draft is easy enough – phone your bank and you can usually get one the same day – but you'll pay a small administration fee.
When you're buying from a private seller, things are more complicated. Approved car loans may put the money directly into your account, but you'd be mad to walk around with a few thousand quid in cash. If you're paying the seller by cheque, they will almost certainly refuse to hand over the keys until the cheque has cleared. That's why it's essential to make sure that the seller is trustworthy: if they aren't, you could be left out of pocket as seller and car disappears.

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