Likelihood of approval

harni2013

Before I go on, I appreciate no one can answer this exactly but I do need some help

During my “adult” life, I have always had credit but in small amounts. I think the most I have ever borrowed has been £3000. At the moment my credit utilisation is low compared to what’s available to me (3k over 2 credit cards with a total limit of 12k) and I’ve not had any defaults on payments except a mistake on Next Directory’s behalf which seems to have now cleared. This was about 5 years ago now

For the past 7 years I have had company cars. I have been given a new job paying about £40k but will be on a cash for cars scheme which pays an additional £5k on top of my wage. I am looking at getting a Skoda from a local dealer for £19k on PCP. My deposit is very low as I wasn’t expecting this to happen at the moment so can only put down 1k as a deposit.

I know no one can answer if I will get accepted or not but my concern is I haven never spent so much before on finance and wondered what could impact my chances of getting the PCP deal in my current situation? What I don’t want to happen is to fail their credit checks and have that showing on my credit file which will impact potentially get finance elsewhere.

Advice is much appreciated.

System

Current outstanding loans, mortgage and debt will be the biggest factor as it'll affect affordability assuming that you've no arrears, defaults etc on your credit file. However with PCP as the finance is secured on the car and not an unsecured loan the bar is set a bit lower and therefore more in your favour. Given I know people with quite low incomes getting new cars on PCP, one of them even only working part time at Tesco, I'd say you'll be fine on your salary.

harni2013

Thanks for the advice. My credit utilisation is relatively low. I have £900 left on a Hitachi loan via DFS for a sofa and my credit cards. Don!!!8217;t have a mortgage as I privately rent so seems like I should be fine then !

ReadingTim

harni2013 wrote: »

Thanks for the advice. My credit utilisation is relatively low. I have £900 left on a Hitachi loan via DFS for a sofa and my credit cards. Don!!!8217;t have a mortgage as I privately rent so seems like I should be fine then !

You might not have a mortgage to pay, but you do have to pay rent, so that's going to impact affordability. Regardless of whether you'll be accepted, do you know how much this arrangement will cost per month, and can you afford it? Also, could you afford it in the event the new job doesn't work out and you're out of work for a month or two...?

Maybe you've thought all of this through, maybe not. If not, suggest you do, because just because you could get a PCP deal, doesn't mean you should get a PCP deal....

harni2013

Yeah, all considered. It’s well within my affordability even if I lost the cash for cars payment so that’s not an issue.

Thanks for your help