Car Loan

zarkrax

Hi All,

I have ordered a car and the PCP deal has been approved, the car I wanted was not being made by the factory, so I ordered a different specification and again the dealer approved the finance.

I had a phone call saying there would be a delay on the car until next year, and they were happy to for me to back out of the deal if I chose to.

The car is still on order, but I am not sure I want to wait to next year now, so I am test driving other vehicles, and I have since discovered that I can get a better loan rate with the bank, rather than take a HP route.

So my question is if I see a car I like, and want to take out the finance or bank loan, do I need to do anything with the pre-approved finance on the car that is on order before applying for a loan/finance?

Thanks in advance.

DCFC79

Well you should cancel the finance on the other car and make sure its cancelled eg get something in writing (they may even do this).

zarkrax

Thanks
I am not sure how the pre-approval works:
All I have signed is an order form for the Car. In the my name and the fiance company.
I have not signed the contract yet, as I don't think I do this until delivery.

I just don't want to be in the situation when I cancel the Car order and find I can't get finance due to the pre-approval.

ricardinho88

Has the finance lender performed a credit check on you yet? 'Approval in Principal' can occur even when a soft search has been carried out.

Having a pre-approval won't necessarily affect your application for finance elsewhere, it's just counted as another search on your credit profile (again, if they've even performed a full credit search yet).

zarkrax

I signed a vehicle order form to agree to purchase from the fiance company.
Part of that form was to agree to a number of searches if needed.

The first approval came back in quickly according to the dealer, as that spec vehicle was no longer being produced. So I did another order for another spec, which meant the finance had to be re-approved. This didn't come back straight away, but the dealer would let me know if there were any problems (then I got confirmation of order). Then a few days later I got the news there was a delay on production. So I am not really sure if they did a hard or soft searches on the finances.

andyfromotley

Put in writing that you no longer wish to take the finance irrespective of what you do with the car.