Bmw mini finance rejection

IAN1

Hi,

My partner has had 3 cars on BMW Mini Finance. The current one is due for settlement, re-finance or return. The outstanding balance if £6100 for a Mini one 58 plate. Unfortunately she has been rejected for credit on a new one and also re-financing this current model.


Therefore the option is handing the car back or trying to find a loan to cover this outstanding balance. Credit is poor as well as mine so obtaining another loan is very unlikely. Plus there isnt enough cash available to buy a cheap car. She really needs a car as she travels in and out of london for work.

Dilemma. Thoughts would be much appreciated?

steve-L

Perhaps I'm missing something but £6100 is the price of 3 or 4 cars.

How much is she paying per month?
How did you get into that situation? Surely if you have no money buying a car over £6,000 is somewhat of a luxury?

Don't get me wrong.... there are people with a lot more problems... somewhere Martin has the story of the couple who he was helping for a media event and had £60,000 in credit card loans and it later turned out another £120,000 of converted card payments so I think compared to that you are not doing too badly....

The main issue is everything you wrote seems to indicate you are living outside your means. The old dickensian saying goes something like income £20 a year and expenses £19 and 19 shillings = happy.... income £20 a year and expenses £20 and a shilling = misery

In other words, if you don't have the money then don't buy it....
Unfortunately we all get bombarded with finance deals...I can hardly buy a new printer without being offered finance.

So you already spent money you couldn't afford on the mini? Do you want to get further in debt just to keep a 58 plate car when you could get something for £2000 or less and live within your means?

I don't want to sound unsympathetic but .....

BenL

Hand it back and walk away.

I was going to say "sell it and use the money to pay the finance off and keep the extra" but as I could buy one for £5000 http://www.ebay.co.uk/itm/2008-MINI-ONE-SILVER-/271112053729?pt=Automobiles_UK&hash=item3f1f89a3e1 the car is not worth what you owe so handing it back to BMW is the best thing to do and they can have the problem.

Ben

bosseyed

I love how people are always so keen to start wittering on about living within your means completely unprompted. Certainly, I agree its admirable to do so, and clearly preferable and less stress - but thats not what the OP asked; they have a situation, they're asking for opinions on what you would do, we don't need the critique on their lifestyle choices and financial decisions.

The situation (assume I'm reading correctly) is they have a car that they have to either give back or find finance on to cover the outstanding value. As finding finance appears to be an issue, the only realistic option would appear to be hand the car back and then look for something properly cheap and craptastic for a few hundred quid. Alternatively see if you can find a loan for £1,000-1,500 to buy a slightly less craptastic car which will be less onerous to pay back.

And good luck.

steve-L

bosseyed wrote: »

I love how people are always so keen to start wittering on about living within your means completely unprompted. Certainly, I agree its admirable to do so, and clearly preferable and less stress - but thats not what the OP asked; they have a situation, they're asking for opinions on what you would do, we don't need the critique on their lifestyle choices and financial decisions.

The situation (assume I'm reading correctly) is they have a car that they have to either give back or find finance on to cover the outstanding value. As finding finance appears to be an issue, the only realistic option would appear to be hand the car back and then look for something properly cheap and craptastic for a few hundred quid. Alternatively see if you can find a loan for £1,000-1,500 to buy a slightly less craptastic car which will be less onerous to pay back.

And good luck.

Sorta exactly the point I was making.....
They have a car they can't afford unless they borrow money ?
(If I'm reading correctly)
Regardless of if someone gives them finance or not it seems pointless to keep the car unless there is something outside the information in the post like waiting for an inheritance, selling a house ???

Other than examining the do I need it and can I afford it I can come up with several ways to keep the car from borrowing from a loan shark, rack up debts on a credit card or remortgage the house but these all seem on the face of it to be rather poor advice.

IAN1

steve-L wrote: »

Perhaps I'm missing something but £6100 is the price of 3 or 4 cars.

How much is she paying per month?
How did you get into that situation? Surely if you have no money buying a car over £6,000 is somewhat of a luxury?

Don't get me wrong.... there are people with a lot more problems... somewhere Martin has the story of the couple who he was helping for a media event and had £60,000 in credit card loans and it later turned out another £120,000 of converted card payments so I think compared to that you are not doing too badly....

The main issue is everything you wrote seems to indicate you are living outside your means. The old dickensian saying goes something like income £20 a year and expenses £19 and 19 shillings = happy.... income £20 a year and expenses £20 and a shilling = misery

In other words, if you don't have the money then don't buy it....
Unfortunately we all get bombarded with finance deals...I can hardly buy a new printer without being offered finance.

So you already spent money you couldn't afford on the mini? Do you want to get further in debt just to keep a 58 plate car when you could get something for £2000 or less and live within your means?

I don't want to sound unsympathetic but .....

thanks for the reply. £6100 on the current car had it for 3 years and had been paying £225 now, its the 3rd one she has swapped but there were no issues on the previous. Obviously now as circumstances change the outcome is this.

forgotmyname

Maybe your not thinking cheap enough? You can buy a car for the same amount you paid for one month on the mini.

OK your not going to get much choice and all you can look at when buying is does it start and stop reliably.
Forget does the radio, aircon or electrics work.

It wont be long before you can save enough for a cheap car with a working radio.

£2700 a year.. My current car cost less than that 3 years ago. And still running well. With approx £600 in servicing and repairs in 3 years.
My last one had less work done than this one. It never even needed a bulb. But still cheap.

Credit is poor so finding a cheap loan is probably a no go. Car finance is usually easier to get.
The only options are lenders that send the boys round or interest that will bankrupt you in a short time.

Take the change from your pocket and buy a car or get a buspass.

fivetide

I would concur. Whilst it is nice to have a fashinable car, if it is simply a matter of getting from A to B then it matters not whether it is a Mini or a Daewoo.

Hand it back and look at travel cards if that is a possibility for getting into London or look at stuff like this http://classifieds.pistonheads.com/classifieds/used-cars/honda/civic/honda-civic-95-vti-1997/934603 as cheap transport.

worried_jim

fivetide wrote: »

I would concur. Whilst it is nice to have a fashinable car, if it is simply a matter of getting from A to B then it matters not whether it is a Mini or a Daewoo.

Hand it back and look at travel cards if that is a possibility for getting into London or look at stuff like this http://classifieds.pistonheads.com/classifieds/used-cars/honda/civic/honda-civic-95-vti-1997/934603 as cheap transport.

Great car the money-that would last for another 10 years.

gerkin

Well, somebody has to buy those nice new BMW Mini's and the lovely ladies like to be seen in them. Not many can afford to fork out 15K for a brand new Mini from the savings so the obvious choice is to take finance. Sadly, the prospect of being seen in a brand new Mini far outweighs the enormous and frightening depreciation that then follows.

Providing an advice on taking a car finance is not money saving at all and hence the replies are veering towards saving and spending kind of lifestyle.

IAN1

Thanks for your opinions. Appreciated. In the long run it doesnt make sense getting a crippling high interest loan for the sake of a car of £6100 that isnt even worth that. I guess thats how Mini and other dealers tie people in. As if the credit was accepted for the new mini we would have taken it. Maybe this is a blessing in disguise getting rejected.