Mini/BMW Finance Credit Score?

Star2018

Hi,

Im looking to purchase a Mini One. I have done a cracking deal with them, I now just need to give them the nod and they will process it, however they need to accept me on the finance first! I tried previously last year, unfortunatley I was turned down for the finance scheme. I have now registered on the electorol roll and checked my credit rating with Experian, the company BMW finance told me they use. I am 18, have never been in debt. After I was turned down i checked my credit score it was 831 it is now 878 which is fair but only 3 points off being good. Just wondered if anyone has used BMW finance or works for them and could give me an idea if i will be accepted as i dont want to be turned down again. Any tips or ideas are also welcome!!

Thanks Katie!

vansboy

Have a look for posts by Doozergirl - she got her MINI on their PCP plan.

& not wishing to be a spoilsport, but have you REALLY done all your homework on the car & repayments?

Not sure if you're buyiung new/nerly new, but MINI is becoming a lot more affordable, generally, without resorting to main dealer prices!!

VB

Doozergirl

If you have never had debt then that might be why you're having issues. A car is pretty expensive and it's possible they want a good credit score in order to show that you are capable of paying back what you owe, not just that you've never been in debt - they've nothing to base the decision on.

It might be worth asking your bank for a credit card and using it and paying it off each month. That will help your credit score.

Tiddlywinks

Just to add another consideration for you - insurance - at age 18 this will be pretty expensive so don't forget to make sure you can afford this as well BEFORE you sign on the dotted line for the car.

Your choice of model can also dramatically alter the insurance group.

After all, you don't want to buy a shiny new car and then not be able to use it because you can't afford the insurance.

Star2018

thankyou for you replies, yes iv done my home work and thought long and hard about it, this is a big thing for me. I just want to be able to look out of my window and see where my money is going and that I am not slogging away at work for nothing! I thing your right with the credit card idea i may try a capital one classic to start with to be on the safe side as I am sure I will be approved for as it is for people with low credit scores. I was previously looking at the fiat 500 however its residual value was awful and they were doing no deals whatsoever on the car or finance, so I looked at the mini. I chose the mini one as it was the entry level model with the smallest engine for insurance purposes. I have also got insurance quotes for 5 new small cars; aygo, corsa, fiesta, fiat and mini, and to be honest they range from 770 - 950. The aygo was the cheapest however i wasn't a big fan. And in my opinion buying a new car is a big thing so i wanted to be happy with my choice, and i wanted something that would put a smile on my face every time i looked at it. The reason I have gone for a main dealer new mini is becuase; I want hassle free motoring as i live in the middle of nowhere and have no ideas about mechanics, its only costing £150 for 5 yrs worth of servicing, i have got a fantastic deal from them (i know how to play the wheeling and dealing game and some of you may think this is naieve but i trust them, they have really looked after me.

vansboy

Hi Katie!

Thanks for coming back to us!

The TLC package is well worth going for, compared to actual service costs, in 'real life'!!

The only other real concern, is buying an entry level MINI, 'cos the better spec the car has, the easier tosell on, again.

It's one of the hidden costs of choosing MINI & one of the main reasons depreciation APPEARS low, 'cos the true on the road price, isn't truly mentioned at trade in time. This means you might THINK your carts holding value pretty well, but the figures won't account for the couple of £000they expect you to have spent to get YOUR car a true MINI experience!

VB

Hintza

Are you sure your going to be in a job in 12 months time? Not many folk will be that confident just now.

Doozergirl

My Mini isn't brand new. I bought it nine months old and saved 3000 off the list price. Don't buy the MINI brand new. I hunted down mine with all the exact bells and whistles I wanted and with 4000 on the clock there was no way anyone was going to know how old it was, me included. I drive around with a plate that makes the car look older than it is anyway!

The first car I ever bought was Ford KA ( the new one looks mighty cute!) and it was brand new and oh lord did I get spanked when I came to sell it too early. I haven't learned to to tone down on buying extras (and I get spanked on the 17" alloys, the chrome mirror caps, the parking sensors, the chrome line interior and the white indicator lenses on the Mini too :wall:) but I have learned that straight from the factory means nothing.

The extras are a killer and i'll tell you now - your mini is worth nowt without air con so you may as well throw in the Pepper Pack and watch the repayments rocket.

Do look around because you will find fun in cheaper cars and used cars as well. When you look out on the drive you will see the money is going on the thing sitting on the drive. If you're buying it on PCP then it's the monthly repayments that matter over residual value really and some thing like a pretty pink new style KA (you'll be cool in that or the Fiat 500) is going to cost you less than the Mini because it costs less in the first place!

Interested to hear who told you the residual on the Fiat 500 was poor - was it the Mini dealer perchance?

pepperwhitemini

If you want some other good advice then I would suggest registering at www.mini2.com/forum and going to the finance section. There are some very good tips and pointers on there to do with MINI finance. And it's also worth registering on there because it is a goldmine of information for everything MINI (new MINI of course). It's not a small website by any means but it has less users than this one although I think there are still around 40,000 members worldwide on there. And the social scene is very good too.

BenL

Will your parents act as guarantor?

At 18 my best friend bought a car on finance from a dealer and his parents went on the agreement.

AdrianHi

As said, you need the Pepper Pack on this car for resale, alloys, air con etc. everyone wants these extras.
Building a history of paying back loans is what you need for a better credit score. Get a cashback credit card, set up a direct debit to pay back the full balance each month, should take long to improve your score.
At the age of 21 when I had my first "real" job after College I had to get my parents to act as a guarantor for a car loan, never borrowed money before.