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PCP For car

minnie9239
minnie9239 Posts: 10 Forumite
Went to look at a Kia Picanto today new one etc etc so took my details said he will let me know tomorrow if it has been approved. Naturally I worry will it get approved etc etc. My rating is 887 never missed any payments do have a outstanding CC and Loan but manageable on my 24k salary. No dependents on the electrol roll etc what are the odds of me being approved?? Its only a 6.5k car and im putting a £800 deposit on it. The APR is 4.9% xxx

Comments

  • chanz4
    chanz4 Posts: 11,050 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    99% chance, as they are cheap and even give it to students
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • minnie9239
    minnie9239 Posts: 10 Forumite
    I just worry cause the APR is so low they have strict guidelines and my new car dream will be crushed :( I have never missed 1 payment in my life had a few loans most settled one outstanding for 5k x
  • 24k salary.

    Already has debt of 5k and want to add 6.5k to that for the "dream of a shiny new car".

    This in my opinion is dumb beyond belief.

    Do yourself a favour now by not creating a future whereby you're swimming in debt.
  • KingElvis
    KingElvis Posts: 4,100 Forumite
    They'll do you a favour if they refuse you as they are awful little things...
    "We want the finest wines available to humanity, we want them here, and we want them now!"
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    minnie9239 wrote: »
    I just worry cause the APR is so low

    Are you sure it's the APR? I reckon that might be the flat rate. So the APR is double and a bit.
  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    You might find you are rejected due to your level of debt relative to your salary.

    £24k per year. £5k outstanding on a loan, plus some on a credit card. You want to add £5.7k to that. If the total debt you want to hold is more than half of your salary, you might find you are rejected. With good cause, the bank is probably doing you a favour because that level of debt is going to become unmanagemable should there be the smallest downward change in your circumstances.

    Save up a bigger deposit or clear your debt. Get your new car when you can afford it. I had the new car dream too, until I realised the thing loses approx 15% of its value the moment I put the key in the ignition. Depreciation on new cars is unbelievable.

    I went for a shiny old classic car. I mention it a lot, I'm still in love with it!
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • I would say high chance of success as the loan will actually be a type of secured finance, secured on the car itself. You will probably never own the car, as you will probably never pay for the full amount of the car.

    I assume that the PCP scheme was explained i.e. you pay a deposit and they tell you a guarenteed furture value based on the milage you do. you then finance the bit in the middle and at the end of the loan, you either pay/re-finance the rest, trade in for a new one or return the car and walk away.

    In my opinion, this is a better way of getting a new car. Most people used to finance the whole amount over 4 or 5 years (to make the payments affordable), but then swapped car after 3 years anyway. This way does the exact same thing, but the finance amount is much lower.

    Anyway, i think you would be accepted for the loan
    Santander Loan [STRIKE]£3003[/STRIKE] £2100
    AA Credit Card [STRIKE]£3148[/STRIKE] £2676
    Natwest OD [STRIKE]£1500[/STRIKE] £1370
    Cahoot OD [STRIKE]£1000 [/STRIKE]£650
    Capital One Card [STRIKE]£641[/STRIKE] £400
    Total [STRIKE](Jan 12)[/STRIKE] [STRIKE]£9546 [/STRIKE] £7196 (Now)
  • chanz4
    chanz4 Posts: 11,050 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    The car once used will not be worth much anyway
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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