Car Finance Acceptance Question

CAG_8888

Hello,

Can I ask your opinions of the following please: -

We are looking at a used car from a main dealer. The car would be purchased using a cash deposit & PX value and then the remainder on the dealers finance.

The finance amount would be £27k.

I'm trying to understand if my wife would be accepted on this finance before applying for it.

Her credit score is good, no late payments, CCJ's or defaults.
She has three credit cards with an outstanding balance of £4000 on a total CL £12000 which is a 33% ratio.
The monthly car payments would be £450 on a salary of £27k. Does this sound like it would fit the affordability criteria used by most main dealers? Does it make a difference who it is? BMW by the way.

Thanks in advance.

forgotmyname

£27k loan when she earns £27k ? Does she not need money to eat and bills to pay?

Although car loans are easier to get I would think thats way too much credit for the salary.

alexjonsson

(sits back to enjoy the show)

No.

dgtazzman

27k finance with 12k already available on credit cards...

I think something like this would be in for a better chance:

http://www.brookemotors.co.uk/used-cars/bmw-3-series-316ti-es-3dr-london-201320514590318

Any particular reason it would have to go onto your wife's name and not in your name/both names?

You're asking for 1,5 times total income as available credit, which is very unlikely to be even remotely considered this day and age, I'm afraid.

CherlokHomes

CAG_8888 wrote: »

Hello,

Can I ask your opinions of the following please: -

We are looking at a used car from a main dealer. The car would be purchased using a cash deposit & PX value and then the remainder on the dealers finance.

The finance amount would be £27k.

I'm trying to understand if my wife would be accepted on this finance before applying for it.

Her credit score is good, no late payments, CCJ's or defaults.
She has three credit cards with an outstanding balance of £4000 on a total CL £12000 which is a 33% ratio.
The monthly car payments would be £450 on a salary of £27k. Does this sound like it would fit the affordability criteria used by most main dealers? Does it make a difference who it is? BMW by the way.

Thanks in advance.

Another wind up post got to be!

Talking about credit scores and borrowing 27k on a 27k salary

BMW will tell you to shove it.

CAG_8888

Interesting responses.

Having spoken to both an independent finance broker and the BMW folk both say they do not require any salary details. They say it is done on the profile of the applicant in terms of length of time at address, no defaults or CCJ's or late payments and not max'd out on available credit.

It is surprising they do not ask for salary, but I guess it works for them.

gazfocus

CAG_8888 wrote: »

Interesting responses.

Having spoken to both an independent finance broker and the BMW folk both say they do not require any salary details. They say it is done on the profile of the applicant in terms of length of time at address, no defaults or CCJ's or late payments and not max'd out on available credit.

It is surprising they do not ask for salary, but I guess it works for them.

I'd say that's rubbish. We've just bought an £10k 11 month old car from a Ford Dealer and they asked for Salary details on the application form. I cannot imagine any finance company offering a loan (especially one for £24k) without knowing your income.

Is there a particular reason you feel the need to lumber your wife with £24k of debt for a car just for the sake of having a BMW?

CAG_8888

gazfocus wrote: »

I'd say that's rubbish. We've just bought an £10k 11 month old car from a Ford Dealer and they asked for Salary details on the application form. I cannot imagine any finance company offering a loan (especially one for £24k) without knowing your income.

Is there a particular reason you feel the need to lumber your wife with £24k of debt for a car just for the sake of having a BMW?

Because she doesn't want a Ford?

Thanks for your comments and your opinion. I can only tell you what they are saying.

SeanG79

Innovate wrote: »

Another wind up post got to be!

Talking about credit scores and borrowing 27k on a 27k salary

BMW will tell you to shove it.

Are you sure that will be their response?

If searches are clean (no late payments, defaults or CCJ's) and listed on the electoral roll with other credit managed responsibly, Alphera (BMW Finance) have a rather large appetite for risk and will most likely approve the finance.

OP doesn't mention the amount of deposit + part-ex vs. finance as this will be taken into consideration.

In terms of affordability (if they even request bank statements - often request salary slips if anything) if they request last 3 months bank statements, they will look to see that you have roughly the payment available at each month end.

With payments of £450 borrowing £27k, either its a 5 year 0% finance offer or its over a shorter term with a balloon. Have you looked at how much you are spending on interest for this vehicle?

Not condoning the purchase of this vehicle, but it does not mean the OP's wife will not be approved for the finance.

Eonel

BMW finance does seem to work differently. My wife got BMW finance on a Mini & she is a home-maker with no income. ( a 0% 50/50 deal )

The form asked for her employment details, but cant remember if it asked for salary. They did not ask for my employment details.

moohound

Whether they will let you have it and whether it is a good idea are not the same thing, but do what you like with your money, I would rather stash 30K in an ISA and stay debt free over the same term, and drive my little Ford but each to their own.

What if the flat rate and the APR you have been quoted, how much will this car cost you in total over the term, is it worth it?

Or do you just want a blue propeller to impress people?

I owned a BMW 318i once, (1998 to 2000) and repairs/parts were horrifically expensive, it was a money pit for parts and fuel, would never have another, having said that it was top entertainment to drive (except in the snow!), only kept it for 2 years and glad to see the back of it.

There are two recent long threads on here started by people over stretching themselves with car finance and now having defaults and hiding from the repo men.

did you really say this is for a USED car?