BMW FS Declined

Lakha123

I recently applied for a PCP on a New BMW list price of around £34k
I had a deposit of 5k with repayment of around £400 per month for 48 months.

However my proposal was declined with no reason given.

I recently took out my first mortgage in January and also took out my first credit card in February with a limit of £500.

All accounts are up to date and paid on time in full.

Credit card utilization is less than 30% and always paid in full when I receive my statement.

Experian score 830 so just over 'Fair'

Bad Points which are listed in Experian

Try to Increase credit limit
2 New accounts within the last 6 months
And the average age of the accounts.

I have never missed any payments and don't have an CCJ'S and affordability is not a problem.

Age 21

How long should i give it before I try and re apply.

beckysheffield

PCP with who?

Lakha123

BMW Financial Services

Lakha123

I'm also registered on the electoral roll.

bengalknights

Most likely you have taken out to much credit to soon or your income doesnt cover all debt so they have declined

sourcrates

or you just don`t meet there own criteria for a loan of that size.


My first house cost less than that.

System

What is your income? Chances are wanting £34k on finance you've failed an affordability check because of your income. The fact you can afford the monthly repayments is neither here nor there.

Thrugelmir

Lakha123 wrote: »

I have never missed any payments and don't have an CCJ'S and affordability is not a problem.

Your perception of affordability and the lenders will differ. A £400 commitment not long after being granted a mortgage may well have triggered concerns.

What's the insurance cost?

Larac

I would suggest that they may consider you are overstretching yourself financially and hence the reason for the rejection. Personally I think it is complete madness spending such money on a car and spending the next five years paying it off - but each to their own. Think you have been given a lucky break with the rejection, although you may not see it like this at the moment.

usefulmale

Why do you feel the need to pay 34 grand for a car that will spend 8 hours a day parked up at work and another 8 parked in your drive overnight?


Just use the 5 grand to get a reasonable car and put the £400 a month into your savings for 4 years instead. An easy way to make 24 grand.

msallen

If a credit card company will only give you a £500 limit then I wouldn't expect anyone to lend you £34K for a quickly depreciating asset.