Refused car finance....not sure why!

Daniel987

Hi all,

Does anyone have any insight into the criteria of car finance companies? I was recently rejected by BMW Financial services and I’m struggling to find out why.

I applied for a BMW hire/lease via the dealership. It was a two year hire and well within my means (monthly payment was about 1/10th my monthly income after tax).

After it came back rejected I appealed and we sent information to the chief underwriter with further info including my work contract, proof I own a property, screenshots showing significant savings and investments. Still declined.

I’ve no idea why. I emailed BMWFS after the original rejection and all they said was my overall profile was judged too high risk. No details given but they said to check Experian, noddle, etc.

Perhaps it’s easier if I lay down the facts:

- I left the UK in July 2010 and I was living in Australia up until May 2012 when I returned to the UK before going traveling until August this year.
- I have a job which I started about a month ago. Well paying; easily covers the monthly payments.
- I own a UK property outright, with no mortgage.
- Noddle has me at 5/5 – top rating.
- Even though I was living in Australia I still had some UK credit cards and one goes back to 2008 with regular payments so i show a good credit history.

- Zero late payments, CCJ’s, etc
- Four Searches on my credit file for the same HBOS credit card in 2012 (Halifax Clarity – used for traveling)
- Some car insurance quotes searches from 2013 – against the property I own, not the property I’m living in now which I applied for the lease with.
- Lived in property I applied for the lease with for 32 years
- Am on the electoral register for almost 1 year.
- I provided screenshots of my current account, saving accounts and share investment accounts showing significant assets. I also provided a statement for the savings account to show this money had been put in over years, not placed for the benefit of a screenshot.

Yet I was still declined.

Could it be the fact I’ve only been working for a month or some other factor? Is it worth asking them for a specific reason why they have rejected me or would they likely fob me off?

Thanks for any input

gb12345

Daniel987 wrote: »

- Some car insurance quotes searches from 2013 – against the property I own, not the property I’m living in now which I applied for the lease with.

This sounds dodgy - insuring a car at an address it won't be kept at.

Daniel987 wrote: »

Could it be the fact I’ve only been working for a month

Possibly

Daniel987 wrote: »

Is it worth asking them for a specific reason why they have rejected me or would they likely fob me off?

You'll be wasting your time - they won't give you a specific reason.

You don't meet their criteria and they're not going to change their mind.

Daniel987

gb12345 wrote: »

This sounds dodgy - insuring a car at an address it won't be kept at.

So I live at one address but own a property elsewhere. I was looking at some quotes to see how much it would cost if I moved back to my property. Had no idea it would result in a credit check (edit: this was also 7 months ago, not recent)

I didn't insure anything, just did some online quotes.

You'll be wasting your time - they won't give you a specific reason.

You don't meet their criteria and they're not going to change their mind.

yeah thought as much

opinions4u

One month in job.

Three months back in the country.

That's the main two reasons for why you've been declined.

I left the UK in July 2010 and I was living in Australia up until May 2012 when I returned to the UK before going traveling until August this year.
- I have a job which I started about a month ago.

dealer_wins

I would say you need to be in permanent employment for 6 (ideally 12 months), and living in the UK for 2-3 years.

iolanthe07

The computer would have said no on residency grounds alone.

Daniel987

iolanthe07 wrote: »

The computer would have said no on residency grounds alone.

What do you mean?

Daniel987

opinions4u wrote: »

One month in job.

Three months back in the country.

That's the main two reasons for why you've been declined.

So as far as they know i've been in the country just not employed.

So likely to the 'one month on the job' but I think the time out of country is a non-issue

gycraig_2

i work with phones so not quite the same kettle of fish.

we wouldnt give you a 300 quid phone on credit if you have been in the country less than 3 years.

your also commiting fraud by saying you have lived in the country for the last 3 months, would you give a 10k car to someone who has only had a job for 1 month after being unemployed for 3 years ?.

your properties and your money are irellevant as its basically just a computer that runs your credit score then says yes or no

Daniel987

gycraig wrote: »

i work with phones so not quite the same kettle of fish.

we wouldnt give you a 300 quid phone on credit if you have been in the country less than 3 years.

I've been in the UK 32 years. I had a few contracts in Aus, came back tot he UK for 10 months and then went and did a bit of traveling for 10 months.

All of the UK stuff, such as credit cards, house, etc remained and I even kept spending on them. i've not had a gap in credit, just my employment was paid to a bank account in Australia.

I can get credit, I just got an Amex card to collect avios (after the car stuff).

your also commiting fraud by saying you have lived in the country for the last 3 months, would you give a 10k car to someone who has only had a job for 1 month after being unemployed for 3 years ?.

I'm not sure what you're getting at? I *have* lived in the country for the last 3 months. I landed back in August and everything i've told BMW FS has been 100% accurate.

your properties and your money are irellevant as its basically just a computer that runs your credit score then says yes or no

As said above if anything it's the simple fact i've only been employed for a month. If they went by my credit score i'd be fine - 5/5 from noddle, 515 from equifax ('top grade - excellent'). Naturally these companies have their own scoring systems, they use the agencies but don't use their score but I wanted to se what others thought.

Additionally, according to the car forums items such as houses and banking *are* important. The risk with a car on lease/hire is flight with the car. Assets in the UK reduces this risk in their eyes but job is still top of the list.

This is why they ask if you're a homeowner and also ask for bank details and how long you've been with said bank.

chanz4

If you have so much savings, buy a car out right