Worried about car finance - can anyone help?

Cave_Felem

Ok, so here's the background, sorry, it might be a long first post :

I enquired about a car for sale (was sure this was the one I wanted as long as all ok with the car) at Arnold Clark over the weekend. On Monday I got a call back from the salesman. At the time, I explained that I was worried about obtaining the finance as I had been refused for a personal loan from the Co-operative Bank the week before (I've got a few missed payments on my credit record, no bankruptcies or CCJs or anything like that). He said he would take all my details, put forward the proposal for finance and see what happened. Yesterday morning, I got a call back to say that one of the companies he tried had accepted the proposal and I'd been approved in principle. He also said that a few other companies had refused. The loan offer was a good one with a reasonable APR (found this a bit surprising under the circs, but was pleased).

So I signed for the car at 9pm last night and took it home. It turned out that the approval in principle was from Santander and this is what is concerning me. I have heard that they are one of the stricter lenders. I am worried that they will somehow retract the offer. I have read a couple of horror stories on here about people having to hand their cars back after a couple of weeks after problems with the finance. Can anyone put my mind at rest?

The details provided to Santander by Arnold Clark are all correct and I can see that yesterday they (Santander) have run a search of my credit record on Experian. Under type of search it says "Hire Purchase/Conditional Sale". I am a bit worried as I have heard that sometimes they only do a basic ID check with the CRAs before agreeing in principle, rather than a full credit check. But surely since the search type says for Hire Purchase/Conditional Sale it means they have run a full one before agreeing and in that case all they would have to do is double check the ID etc I provided at the dealers last night (which is obviously all correct and in line with the info they were provided). I did ask the salesman on the phone about this before I went through and he said there would be no issue with the finance providing my ID matched up etc. But I am more than aware that he would probably have said anything in order to get me to come in and take the car away so that he could meet his end of month targets!

Please, please, can anyone set my mind at rest? This is spoiling my enjoyment of my new car.

Cave_Felem

Bump - anyone?

I'm really quite worried about this.

wealdroam

So, what is the question then?

Credit has been agreed hasn't it?

Is that not what you wanted?

Are you now having second thoughts about your purchase?

fivetide

They can't take it off you now they've done it. they made the checks, pay the fees, enjoy the car.

5t.

Cave_Felem

Thanks guys - the question is: since the finance has only been approved in principle, can the company (Santander) refuse it at a later date? E.g. if they haven't actually run a full credit check, maybe only used Experian to confirm my basic details?
I'm asking cos I've seen a few threads on here where people have driven their cars away from the dealer and then had to return them a few weeks later when the finance fell through.

Basically, does anyone know if the words "Hire Purchase/Conditional Sale" next to a record of a search on your credit report indicate that a full check has been carried out? Or does that indicate that the searcher was only doing a brief ID check?

NeverAgain_2

Arnold Clark would not have let you take the car away unless the finance was order.

Presumably you have documents to show what you have borrowed and the repayments.

If these figures are correct, I don't understand why you are giving this any further thought.

dazzadub

they wouldnt let you take the car unless they have been paid for it, or intend to get paied under a contract.

like people have already said, they cant take it back you have a contract with them and you pay them for it, enjoy your new car.

ps dont forget to pay them lol

dazzadub

oh to anwser the question about other lenders refusing.

they all have different criteria some will lend some wont even with very good credit rating.

i couldnt get a personal loan but could get finance for a brand new audi a4 at £38k with only 6% apr with santander. its just one of those things.

Cave_Felem

Thanks guys, feel a bit more reassured now. I was just surprised to be offered credit by such a reputable lender, given my probs the week before. And the fact that I only have an acceptance in principle so far (haven't set up direct debit or anything like that yet) despite the fact I was able to take the car away. Fingers crossed all will be fine

wba31

You gotta remember that if you default on payments on HP they can reposess the vehicle, so they might be a little more likely to award finance than a loan company would an unsecured loan...

Experian_company_representative

The type of search conducted by Santander was a full credit application. An ID check would have shown as such. What they're essentially saying is you've been assessed and accepted, subject to your docs being ok, which I'm sure they are. Enjoy the car!

James Jones