Refused car finance....not sure why!

Laurajo_2

I think it's the one month employment that's worrying them.

Daniel987

chanz4 wrote: »

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

I like the flexibility of being able to hand the keys back at the end of the term. Additionally this finance deal actually works out to be far less than the depreciation over the period.

chanz4

Daniel987 wrote: »

I like the flexibility of being able to hand the keys back at the end of the term. Additionally this finance deal actually works out to be far less than the depreciation over the period.

impossible, think need to re-look at the figures

Daniel987

chanz4 wrote: »

impossible, think need to re-look at the figures

Not at all impossible! Very common when you start looking at certain cars of an executive level.

molerat

With your history maybe they think you are just going to !!!!!! off out of the country again at any time.

inmypocketnottheirs

You do not meet their funding criteria. End of. Move on.

Eonel

Daniel987 wrote: »

Not at all impossible! Very common when you start looking at certain cars of an executive level.

I would also say it is impossible for leasing charges < pure depreciation. Unless the marque/dealer is pushing the lease as a loss-leader or unrealistically low mileage?

It is possible if depreciation is calculated from list price - such as the depreciation curves calculated by websites like WhatCar. But people buying cars outright are very rarely paying list price & the more executive the car, the bigger the absolute discounts available.

Leasing give you peace-of-mind, but at a price.

Be interesting if you could provide a worked example showing where leasing < depreciation.

Daniel987

Eonel wrote: »

I would also say it is impossible for leasing charges < pure depreciation. Unless the marque/dealer is pushing the lease as a loss-leader or unrealistically low mileage?

It is possible if depreciation is calculated from list price - such as the depreciation curves calculated by websites like WhatCar. But people buying cars outright are very rarely paying list price & the more executive the car, the bigger the absolute discounts available.

Leasing give you peace-of-mind, but at a price.

Be interesting if you could provide a worked example showing where leasing < depreciation.

If a car has not reached production capability the parent companies will offer great deals. Seen it many times over the years with various manufacturers including Audi, Mercedes and BMW. Head over to the piston heads forum.

One example - BMW M5. £73k list, close to £77k once you add a few fancy options. Many people have said they only got 10% discount MAX, so assume £70k.

BMW were recently offering £6k down and around £500 per month for a two or three year contract, 8k miles per year. Assuming two years that's £18k.

Looking on Auto trader the 2011/2012 models are already about £48k. So it's an £18k hire vs a depreciation of £22k (and the full two years are not even up). Then also remember the hire includes road tax (including the initial £500 luxury car tax!) and other benefits such as handing the keys and walking away, no more giving up your weekends to try and sell.

SeanG79

lack of 3 years trace on the electoral roll will result in a decline from most prime lenders. The job wont help either...

Eonel

Daniel987 wrote: »

If a car has not reached production capability the parent companies will offer great deals. Seen it many times over the years with various manufacturers including Audi, Mercedes and BMW. Head over to the piston heads forum.

One example - BMW M5. £73k list, close to £77k once you add a few fancy options. Many people have said they only got 10% discount MAX, so assume £70k.

BMW were recently offering £6k down and around £500 per month for a two or three year contract, 8k miles per year. Assuming two years that's £18k.

Looking on Auto trader the 2011/2012 models are already about £48k. So it's an £18k hire vs a depreciation of £22k (and the full two years are not even up). Then also remember the hire includes road tax (including the initial £500 luxury car tax!) and other benefits such as handing the keys and walking away, no more giving up your weekends to try and sell.

Thanks Daniel,

I looked up the M5 current finance deal. To be more realistic, I used 12,000 miles instead of 8,000. BMW are offering 0% finance at the moment that *looks* attractive.

Retail Finance.
On the road cost £73,375
Customer deposit - £6,000
24 monthly payments of £1,102.29
Cost for owning 2 years : £32,454.

Outright purchase.
Autoebid.com £68,885
Parkers part-exchange value of a 2011-61 plate M5 : £41,060
Cost for owning 2 years : £27,825

Outright purchase is £4,629 cheaper. I accept your points on the benefits of being able to walk away, but you are paying for that benefit. Most people who buy £70,000 cars do not spend their weekends trying to sell it – they take it back to the dealership and trade it in for a new one.