Bmw Select Finance Credit Question...

dyoungson

Hi All,

I am new to this forum so please bear with me.

I have a query which I hope somebody can help me with.
I want to buy a BMW 118d Coupe on BMW Select, I have spent the past three months ensuring that I can afford the monthly commitment and that I am doing the right and I have decided that I am more than capable financially and have decided to go ahead and do it.

Before going to the dealership to place my order I decided to check my credit file with Experian and Equifax. To my surprise I have a default account on there from 2 1/2 years ago. I never knew this had defaulted, I understand I missed 3 payments but I then settled the account in full. Since then I have obtained credit in the form of credit cards, 1 master card, 1 Amex and an Argos store card along with a contract mobile phone all of which I have never missed a payment to date.

My scores are 300 with Equifax and 722 with Experian.

My question is, is this acceptable for BMW Select? If not am I able to have somebody be guarantor?

Please advise I hope somebody can help me.

Thanks,
D

harveybobbles

Can you afford the lump sum at the end of the deal?

If your're dithering a bit about it then why not buy a 2nd hand one on finance...

dyoungson

I can afford the deposit, and the monthly payments with ease, but can not avoid the balloon payment at the end.

Lemonade_Pockets

I don't know if its high enough but they aren't horrendous scores.

When you place the order explain the situation frankly and make it a condition of the deal that they refund the deposit if you don't get accepted on finance. They will probably be fine with this if they are not walk away as another dealer will be. Don't worry about it being a BMW dealership or anything like that they will get plenty of finance rejections.
I ordered a new Mini recently and the business manager (who looked after BMW too) reckoned only about 10% of his customers where auto accepted and about only a further 50% accepted after further review by the underwriters.

Yes you can get a guarantor if needs be.

dyoungson

Excellent, thanks for the info Lemonade Pockets.
Do you know the process in regards to a guarantor?

Lemonade_Pockets

Yeah they send of the proposal to the finance company in your name.

They will come back if you are of a suitable age and status to be guaranteed and ask if you can get a guarantor.

The process differs for each finance company but that will essentially be it. Mention it to BMW from the outset if its an option then they know to mention it to the underwriters should they decline a proposal just in your name.

NatD1978

We just bought a used 116i M Sport direct from BMW...



...it's on a 56 plate so still has about 3 months original manufacturers warranty, plus an additional 1 year as part of their used / approved deal.

It's a beautiful car, in immaculate condition, and we got a really good deal from them. Plus we got the M Sport spec, with full leather interior / comfort pack / light pack, for a price we would not of been able to afford from new. It's only got 20k miles on it too, and drives beautifully.

The buying experience was fantastic (Halliwell Jones Chester) but we spoke to a lot of approved dealers, and all were really good.

Have a look at their used / approved website, and you'll be surprised with some of the cars on offer.

Maybe wait till next week as well, as they have targets to hit for August, before the new 59 plates come out, so you may be able to get a better deal.

Re. finance, BMW offered to beat the APR we had in place, but because we only needed £4k on finance, this was below their minimum of £5k.

There's nothing worse than paying for a car over 3 years and then having to pay a lump sum, or trade in / up.

Check this link out for more info: -

http://www.bmw.co.uk/bmwuk/auc/homepage/0,,1156___sit-bmwuk,00.html

Good luck.

AdrianHi

dyoungson wrote: »

To my surprise I have a default account on there from 2 1/2 years ago. I never knew this had defaulted, I understand I missed 3 payments but I then settled the account in full.

Can't you contact this lender and get them to clear your record since you have settled this finance?