Large finance deal agreed and then subsequently refused!!!!

BigJonny

Hi, I'm looking for a bit of advice from someone in the know.

A friend of mine placed an order for a brand new Mercedes in March this year. The car was on a 6 month delivery time which coincided nicely with a new registration date and a September 1st delivery was agreed.

He paid a £500 deposit and sorted all the finance out etc..

The vehicle is now in the UK and being prepped for collection in a few weeks time. However, the dealer called him yesterday and told him they have had to re-run his finance which is standard procedure and he now doesn't meet their lending criteria.

They are refusing his deposit back and they are stuck with a £60k motor to sell!!!

He's obtaining copies of his credit file and is at a loss to understand why this has happened (his circumstances have not changed at all since he placed the order).

Can they do this? Seems very strange to carry out a further credit check when they already have one in place.

Any advice would be appreciated.

Thanks

jobdone1

That will not help running another credit check within six months this can cause the negative score because it looks like he is asking for more credit. They should have no reason to re-run the credit check as the sale is agreed with a deposit in my view. I would urgently get legal advice or speek to the c.a.b. I would be going mad if it was me and rest assured i would not back off.

Strider590

jobdone1 wrote: »

I would be going mad if it was me and rest assured i would not back off.

About 60k worth of finance? I'd say you were bonkers in the first place.......

People who can afford a 60k run around, they don't use finance. The rest are just pretending.......

BigJonny

Strider590 wrote: »

About 60k worth of finance? I'd say you were bonkers in the first place.......

People who can afford a 60k run around, they don't use finance. The rest are just pretending.......

For the record, the car is worth £60k - I never mentioned how much of it is being financed.

Each to their own though!

diesel_dog

Surely the sales person at the dealers can talk to the finance company and ask why. That's what I would of done then maybe then they can sort out a solution, but it's hardly the customers fault - unless he's done something wreckless IMO.

colino

It does happen, especially with long build dates. Mercedes Finance are quite within their rights to reassess the risk, they don't do it not to sell cars, and it's came back negative in this case. Has your friend taken on any new credit in the meantime? It may well be he was borderline to begin with and something quite trivial has pushed him over.
Speak to the dealer, they want the sale!

GolfBravo

BigJonny wrote: »

Can they do this? Seems very strange to carry out a further credit check when they already have one in place.

Any advice would be appreciated.

Thanks

Standard procedure.

"and he now doesn't meet their lending criteria" - is this just a case of "the computer says no", or is the dealer business manager at least trying to approve it "manually" with the finance company?

What else is he saying? Is this a definite no-go, or are they asking for a larger deposit? Can they arrange finance for your friend elsewhere (usually a dealer would be an agent for 2-3 finance companies) at a slightly higher interest %?

BigJonny

colino wrote: »

It does happen, especially with long build dates. Mercedes Finance are quite within their rights to reassess the risk, they don't do it not to sell cars, and it's came back negative in this case. Has your friend taken on any new credit in the meantime? It may well be he was borderline to begin with and something quite trivial has pushed him over.
Speak to the dealer, they want the sale!

He hasn't taken on any new credit since ordering the vehicle, hasn't even applied for any credit and all other payments (mortgage etc..) are bang on time. This is why I found it very strange.

BigJonny

GolfBravo wrote: »

Standard procedure.

"and he now doesn't meet their lending criteria" - is this just a case of "the computer says no", or is the dealer business manager at least trying to approve it "manually" with the finance company?

What else is he saying? Is this a definite no-go, or are they asking for a larger deposit? Can they arrange finance for your friend elsewhere (usually a dealer would be an agent for 2-3 finance companies) at a slightly higher interest %?

This came as a bolt out of the blue for him yesterday - I think a sit down with the business manager is his next step

Strider590

BigJonny wrote: »

For the record, the car is worth £60k - I never mentioned how much of it is being financed.

Each to their own though!

You did, because you said £500 deposit

spacey2012

This is the other end of the deposit argument.
If the garage is refusing to honour the contract, they should return the full deposit .
Invoice them, LBA them, sue them.