PCP Help - Seat Finance

Lozfow32

Hi All,

Sorry if this thread is misplaced I'm new and still finding my navigation tools.

I'm going to try and keep it short and informative.

2 years ago I needed a new car and had bad credit, I had recently completed an IVA and revived a completion notice, never missed a payment and was so happy it was over. As I knew I had to wait 12 months for this to be removed from my credit file my mother offered to take on the PCP with seat for me! I have paid every monthly payment on time and now mum wants this off her file and it's almost due to be handed back or changed.

I visited seat yesterday to ask when I could hand it back and they said it would be better to swap, they would buy it and then I choose a new car! This is all good and well but I am worried I won't get the finance PCP with them in my own name, I have only 1 credit card which isn't maxed up and always pay on time but due to my IVA only being renoved/corrected 3 months ago which I thought had been done in 2014 I wasn't happy, they've now added a notice to the file saying it was completed and removed in 2012 but the scores are still low?

I can prove that the last 24 payments have come from my bank on time every month would this helps to get it? Even though the agreement was in mums name the payments came from my bank.

They called me yesterday with a quote for a car I seen which was resasonable but I am scared the computer will say no. I've a full time job and been there 7 years but does this really matter? I would of throught as it was PCP the car is the security for the finance companies so wondered if it was easier to go that route? Also if it is declined are there other companies seat will try?

They really want my car which is only 2 years old and few miles settling my PCP figure and a little spare cash too so wondered what are the odds of being accepted?

Any advice from people would be great and again I apprciate all help and feedback.

Cornucopia

You're right, it can be easier to get car finance than other forms of secured & unsecured borrowing, so if you want to do that, then it's certainly worth trying. You could even fore-warn the dealer that it might be declined, to avoid embarrassment if it does,

If you don't want another new/new-ish car, then ask them if they will buy your car for cash, redeeming the finance as they do. You can then sort out whatever vehicle (if any) you need without pressure from them.

The whole point of PCPs is to have flexibility at the end of the term, so don't get pressured into something you're not comfortable with.

Lozfow32

Thanks you so much for your quick response. I definitely don't feel pressured and was not aware when taking out the PCP in 2013 that instead of handing it back I could change it for another vehicle. My balloon payment is 9k but they will offer me 10.5k so it would allow them to by the car I have and finish the PCP for me and I start from scratch without my mum involved and with 1k over to put toward the new PCP.

I just hope that all will be ok, it's an amount of 14k so that's what's making me think it will decline as its a high amount but I have the money for payments and I'm on a good wage.

Initially I was going to hand it back and try and save and hope my score increases and try in the new ye year but I do need a car and want to have this taken off mums file also.

I just wondered if anyone on here had dealt with seat finance/VW finance or Audi finance with similar situations as all three groups are the same.

Thanks again.

Cornucopia

The reason why car finance tends to be relatively easy to obtain is because the finance is secured on the vehicle.

Hopefully it will work out for you.

Just to be clear, the options available at the end of all PCPs are...

1. Hand back the car and walk away with nothing more to pay.
2. Trade in the car, benefiting from any equity in excess of the MGFV (balloon payment).
3. Pay the balloon payment and keep the car.
4. Sell the car for cash, using a reputable dealer so that the finance is cleared.

Lozfow32

Yes thank you.

I was just a little scared that as its a main dealer they will be strict when offering, unlike other dealers such as Arnold Clark etc.

I just don't want to apply, get knocked back and have my score reduced even more after trying so hard to improve it and it won't budge.
Thanks again for your advice.

Lozfow32

Are main dealers harder to get PCP with? Will they try others if declined?

Thanks

Cornucopia

Lozfow32 wrote: »

Are main dealers harder to get PCP with?

Not as far as I know. I recently took out a Manufacturer's PCP, and rather get into the vast amount of details a self-employed employment status would have entailed, I just put down "Retired", and it went through without any queries.

Will they try others if declined?

I imagine they may have access to sub-prime lenders, however, the terms and interest rates may be disadvantageous.

Unfortunately, I don't think you are going to get the answer to your underlying question here. The best thing, I would have thought, is to explain the situation to the Dealer, and perhaps have this conversation with their Business Manager (if they have one) prior to putting in the finance application. He/She will have seen how different applications have fared recently, and may be able to direct your application in a particular way so as to give it the best possible chance.

Lozfow32

Thanks, but the bullet and decided to try! Seat just called and said its 'Pending further information & checks" doesn't look good.

Thanks anyway for your help and feedback

loskie

thats why dealers like pcp deals. They can lock you in to being a long term customer.

Lozfow32

Thanks Loskie, unfortunately ive not had a PCP agreement with seat before my mum did it but now I want to do it alone.

Still on answer but due to the pending decision for further information I'm taking that as a decline so I will wait 12 months before applying again as a decline knocks my score down from what I've increased it!

Thanks again

Mercdriver

Lozfow32 wrote: »

Thanks Loskie, unfortunately ive not had a PCP agreement with seat before my mum did it but now I want to do it alone.

Still on answer but due to the pending decision for further information I'm taking that as a decline so I will wait 12 months before applying again as a decline knocks my score down from what I've increased it!

Thanks again

A decline doesn't affect your score as it doesn't give the result. It's multiple searches that can do that. The reason being that the system doesn't know you haven't taken out multiple commitments.