what are the chances of getting a car on a PCP?

ladaowner55

I earn £37k a year have no children and no credit apart from a loan of £7k on my current car. My mortgage is only £500 so I have plenty of spare cash been employed for 15 years and I will sell the current car to webuyanycar.com once I get a new car. I want a new car on a PCP deal list price 21k with a 2k deposit and 7k left at the end of the term and £300 a month, so the amount on loan is only £15k. I have a perfect credit rating, equifax state it is as 999 (best possible).


Does anyone think this will cause a problem with the credit check at BMW? Not sure I could deal with the embarrassing after haggling a good deal with them.

Let me know what you think.

DevCoder

Right, lets start again.

You have 7K of car loan which the lender has no guarantee you will clear.

You want to borrow another £15K (if the lender takes into consideration the balloon payment at the end, some wont).

So you have potentially £22K of borrowing against £37K incoming, that's borderline.

However if this is through car finance then it will probably sail through as their lending criteria is more relaxed and takes into account other factors that mainstream banks ignore. (to the good or the bad, that's for another debate).

ladaowner55

yes the loan is on a brand new car from BMW ARP 4.9

Wages were only £34k for past year but have gone up to £37k for past 2 months and will continue too stay at this rate


Will get the car down from £21,000 to £19,500 the finance is over 4 year with a final payment of £7k. The deposit on the car will be £2k so will only need to loan the £10,500 and still have the old car loan of £7k total of £19k in loans and the final £7k payment in 4 years time.

I am thinking this should ok ok too but just don't want to be embarrassed at the dealership.

R_P_W

If you have plenty of cash why dont you just buy the car without PCP?

[Deleted User]

why people pay silly money for cars is beyond me,it would almost be cheaper to take taxis everywhere

kuohu

The bigger picture:
https://forums.moneysavingexpert.com/discussion/4352169

Apples2

kuohu wrote: »

The bigger picture:
https://forums.moneysavingexpert.com/discussion/4352169

Good grief.

Someone who is desperately TRYING to go Bankrupt or at least enter an IVA is also trying to take finance on a brand new BMW..... to park outside a drugs den? :rotfl::rotfl::rotfl:

Why is there always more to these type of posts??

ladaowner55

if you read that post fully it states i was desperate to get out of the flat because the leasehold company has gone bankrupt and drug dealers have moved into the other flats in the block.

I was not desperate to enter bankruptcy but saw this has my only way out. Since then I have seen a solicitor who has is going to try and sort out the leasehold and the drug dealers.

Not that it is any of your business but my financial situation is very healthy indeed. Never missed a payment had loads of credit. So why bad month me? You don't know me

Why is there always someone who thinks he is the funny man? :rotfl: :rotfl: :rotfl:

R_P_W

So with your flat issue still ongoing and not knowing what the outcome could be, you are looking to buy a £21k brand new car on a £37k salary? I'm sorry but even without the flat issue borrowing that much based on your earnings seems unwise, doing it with the living issue you have at the moment just seems plain crazy!

Wyndham

ladaowner55 wrote: »

Not that it is any of your business but my financial situation is very healthy indeed. Never missed a payment had loads of credit. So why bad month me? You don't know me

Then don't post on a public forum! By doing so, you've made it our business.

pheonixrising21

krisdorey wrote: »

Right, lets start again.

You have 7K of car loan which the lender has no guarantee you will clear.

You want to borrow another £15K (if the lender takes into consideration the balloon payment at the end, some wont).

So you have potentially £22K of borrowing against £37K incoming, that's borderline.

However if this is through car finance then it will probably sail through as their lending criteria is more relaxed and takes into account other factors that mainstream banks ignore. (to the good or the bad, that's for another debate).

I think you are getting confused with personal loans. That is how a consolidation loans work, or 0% BT deals on credit cards - they assume you won't pay off and close the old accounts and assess you based on the total amount.

If the current loan is secured on the car, then the dealer (or webuyanycar) settle the finance on your behalf. They have to do this as they cannot sell the car on with outstanding finance. Therefore, only £15k of borrowing, not £22k.

I don't know about you, but I have never once settled car finance personally with cash given to me by a dealer as trade in. Yet, somehow, all previous car finance agreements show as settled and closed on my credit file

I've had PCP agreements explained to me many, many times by dealerships and they always say that they don't take the balloon into account for the finance, as this is an optional payment, only payable if you want to keep the car. There is usually the option to finance this balloon payment when the time comes to pay it.

OP, why would you sell your car to webuyanycar? Surely BMW can better that valuation? Maybe you could use the webuyanycar valuation as a "minimum expected" guide and use that in your negotiations with BMW.