Multiple Car Loan Enquiries

jackouk1234

Hi,

I understand that making several loan applications can cause concern for lenders but on the old internet search engines a lot of credit websites say that making several CAR loan applications are mostly classed as one application. However all these sites seem to be referring to the USA.

Does anyone know if UK lenders follow this practice when it comes to car loans?




Background:

I applied for two loans yesterday. YBS & Tesco. YBS came back with 3.9%. I left the window open at the point where it says "Yes I do" or "No I don't". Did Tesco, they won't give me an instant decision. In the meantime YBS had timed out.

YBS offer was only valid for the next 6 hours (strangely). Anyways saw the car this morning, fell in love. Went back to YBS and this time I got 10% APR! So then I've tried Sainsburys (no instant decision) and the AA @ 10%.

Appreciate I may have shot myself in the foot as I'd read that for Auto loans lenders aren't picky when it comes to multiple loan applications. If this isn't the case that would explain the higher APR.

I'm a high earner with an almost impeccable credit history but also self employed hence thats why I think Tesco & Sainsburys want to 'have a word' before approving/discussing APR.

System

No it isn't practice in the UK. They will be recorded as separate hard searches.

jackouk1234

Well looks like I made a mess for myself. Annoyingly I'd held back on applying for loans until the last minute as I didn't want to be negatively affected.

Don't believe everything you read on the internet! (or at least, make sure it applies to your country)

DCFC79

jackouk1234 wrote: »

Hi,

I understand that making several loan applications can cause concern for lenders but on the old internet search engines a lot of credit websites say that making several CAR loan applications are mostly classed as one application. However all these sites seem to be referring to the USA.

Does anyone know if UK lenders follow this practice when it comes to car loans?




Background:

I applied for two loans yesterday. YBS & Tesco. YBS came back with 3.9%. I left the window open at the point where it says "Yes I do" or "No I don't". Did Tesco, they won't give me an instant decision. In the meantime YBS had timed out.

YBS offer was only valid for the next 6 hours (strangely). Anyways saw the car this morning, fell in love. Went back to YBS and this time I got 10% APR! So then I've tried Sainsburys (no instant decision) and the AA @ 10%.

Appreciate I may have shot myself in the foot as I'd read that for Auto loans lenders aren't picky when it comes to multiple loan applications. If this isn't the case that would explain the higher APR.

I'm a high earner with an almost impeccable credit history but also self employed hence thats why I think Tesco & Sainsburys want to 'have a word' before approving/discussing APR.

Sainsburys can be picky who they lend to, you just need to check the forums for that.

jackouk1234

That's fine RE Sainsburys. I'm actually getting a little annoyed the more I think about it. If YBS gave me more than 6 hours to decide I'd have held off and accepted it today.Instead they told me to accept before midnight which I didn't want to commit. So I'm obviously going to need to apply again...

I guess 10% APR isn't the end of the world but now I'm stuck. I can't shop around for loans else it will go up to 20%.

As luck would have it I refused to put a deposit on the car even though it's perfect.