Car Finance Refused

Craftyspace

We brought a new car last year on finance. Just after Christmas a car run into our parked car and to cut a long story short the insurance has deemed it a write off.

Luckily the payout covers all but £135 of the finance. Our problem is that the dealer we brought it from, eager to sell us another has done a credit check for another car and saying that we have been refused,

My questions are,
one has the dealer made a mistake applying to early, as the insurance hasn't settled the finance yet (figures only agreed today with all parties). He told us the credit had been refused due to information held on our credit reference file. I have tonight got a full report from the credit reference company he said they used and there is no defaults no ccjs nothing that's looks bad as far as our accounts but our score is low (we did recently buy a new boiler on finance)
Two, as the accident was not our fault why should we now be left with out the possibility of getting another car?

DCFC79

Well luckily your score isnt seen by anyone but you, what exactly is on your history as thats important.

Wouldn't have thought the boiler would have much effect.

boliston

A lot would depend on the finance house they use - some only deal in prime lending and others happily accept sub-prime at a higher apr

rtho782

Well they probably think right now that you are trying to purchase a 2nd car....

Gaz83

Surely you must have given the dealer permission to do a credit check, though?

Craftyspace

Yes we said he could do it but I did ask that would it not look good as our car finance was still showing as active. He assured me it made no difference. My understanding it that the "credit gods" give you a credit amount and the company's use this to judge if you can afford more? I know there's more to it than that but this is one factor I believe.

Hence (figure for explanation purposes only)

If our rating is 10,000 and our loan is 6,000 we apply for another 6,000 we get declined?

Or am I wrong?

[Deleted User]

Yes, you're wrong. There's not a credit amount you're entitled to.

You may need to wait until the finance is settled. Alternatively, do you absolutely need to finance the next car. Do you have any savings at all?

foxy-stoat

Craftyspace wrote: »

Two, as the accident was not our fault why should we now be left with out the possibility of getting another car?

You are put back to the financial position before the accident, in this cause they have paid out for the cars pre-accident value.


Unfortunately for you, you didn't own the car the finance company did - but at least you are, or should be, clear of the debt for the car.


May be there is something else on your credit file causing the decline, have you checked the information on it?