Rejected car finance...

leedsem

Hi,

I put down a £250 deposit for a new car and had the usual credit check. I got a letter two weeks later stating it had been rejected. Panicking about what the hell was wrong with my credit report I paid to get it and had a look, only to find I have an excellent credit score. I have just one negative point on my report - i'm not on the electoral roll in my new flat (i've lived here just a few months).

I guess I have two questions:
1) Can I fight this decision on the grounds that I can prove this is my current address (I have utility bills and my driving license has my current address on)?

2) Can I get my £250 deposit back from the garage if either I can't get the decision overturned or I decide not to get the car from them because to be quite honest, they've hacked me off rejecting me on the grounds of something so small.

Thanks in advance!

leedsem

Portly_Pig wrote: »

The finance company rejected you not the garage, you face the same at the next garage.

Yes, I'm aware that they're two separate entities, though owned by the same parent company. I won't face the same at the next garage as i've now done the forms required to get on the electoral roll.

waynedance

What did the terms and conditions say about refunding of deposit?
Have you asked for deposit back yet?

leedsem

Nothing sadly, talks about refunding the deposit under certain clauses but it's all about non-delivery of the car, nothing to do with finance. No not yet, just got the letter and checked my report.

forgotmyname

Shows how your credit report score is totally meaningless.

You now have a declined application on it. How many points did that knock off the score? But again it's still a totally useless score.

leedsem

forgotmyname wrote: »

Shows how your credit report score is totally meaningless.

You now have a declined application on it. How many points did that knock off the score? But again it's still a totally useless score.

Thanks for your input there.

As an aside, I got my report after their search and decline and it was still firmly in the 'excellent' boundary.

forgotmyname

Its excellent yet you got refused credit? Thats exactly my point. Credit score = worthless.

Every lender will have their own system for scoring you. Seems they dont use the credit agencies scoring system.

colino

A few points here. They want to sell you a car and make money, they do not want to turn you away and lose a sale!
Speak to their in-house finance guy and be open and honest with him. While you can independently obtain your details of your credit worthiness, speaking to them will short-circuit the issue for both of you.
It could well be a glitch, transposition of information or whatever, but do check.
Finally if the answer is still no, as they are acting as a finance broker in this case, they can only charge you a fiver for what they have done.

arcon5

Getting on the electoral won't necessarily change things. They will also consider your age, your occupation, the level of current debt irrespective of whether you are paying on time or not each month, your income and much more.

All lenders have different criteria, usually reflected in the interest rate. So going to a different garage who use a difference finance company may help.

As for your current predicament, you could argue you bought the car in good faith that they would provide the finance, and since they cannot provide this, you should get your deposit back.

dld2s

Garages usually have more than 1 lender to use, you may find this garage has also and may get the credit with another finance firm, speak to the garage, myself, if I paid a deposit I would expect it back, to me part of the deal is that you are buying the car only if finance is approved, I would imagine with most reputable garages this would be the case, certainly I have not had many problems getting deposits back (albeit a little slow sometimes) from say Arnold Clark or BMW dealers

leedsem

colino wrote: »

A few points here. They want to sell you a car and make money, they do not want to turn you away and lose a sale!
Speak to their in-house finance guy and be open and honest with him. While you can independently obtain your details of your credit worthiness, speaking to them will short-circuit the issue for both of you.
It could well be a glitch, transposition of information or whatever, but do check.
Finally if the answer is still no, as they are acting as a finance broker in this case, they can only charge you a fiver for what they have done.

Thank you! Someone who actually answered me! I'll go the garage's finance person and fight my corner with him.