Refused car finance PCP

Sea_Shell

Let me guess.... Audi S3 ??

ndf9876

I would be surprised if you did manage to get finance with those sorts of figures. Buying a car (or renting as I prefer to think of it with PCP) valued at twice your annual salary is, quite frankly, pretty far from money saving. Some might even call it bonkers.

Best of luck to you though, I hope you don't end up on the Debt-Free Wannabee board in 6 months' time.

AstroTurtle

To be honest, Affordability assessments don't just look at how your finances are as of today. They will stress test you against how you're likely to survive if mud hits the fan.

Chances are having £1800 take-home but a £400pcm car on £20,000 of credit + 6-9% interest.

If you lost your job or encountered unexpected expenses (Insurance, Tyres, Mot, Service, Repairs, Faults) they could be accused of irresponsible lending by allowing someone to take on such a heavy commitment.

BakingC

Ignoring any affordability issues / the merits or lack thereof of a £40k car on finance.

If you are looking at building a credit history by "I also have a credit card which I use as a credit builder. I just buy stuff with it and pay it back pretty much immediately (I get points from it which contributes to an Amazon voucher for every 1000 points earned) Credit limit £1000" do you mean you wait until statement date and then pay off?

If not then it might look like the card has no activity from a history perspective. If you pay off in full after statement date but before due date you will not be charged interest (excluding other transactions like cash, balance transfers etc).

Mutton_Geoff

My first car, age 17 was 2x my monthly salary. My latest car, age 60 was 2x monthly salary. Why would you want to spend twelve times that amount on a depreciating asset?

Thrugelmir

LR2015 wrote: »

The PCP works out at about 390-400 a month with 20k deposit which I can easily afford to pay every month.

What's the insurance cost?

What's the likelihood of you looking after the car properly?

Flowersinmyhair

40k car �� don’t do it! Save the money & buy a cheaper car.

Gaz83

Schools out for the weekend?

teameffort

Cars are a depreciating liability where as savings are an asset

I think it's Dave Ramsey who says if your car costs more than half your salary you can't afford it.

Walk away from the overly expensive car and buy a cheaper car out right.

nyermen

Sea_Shell wrote: »

Let me guess.... Audi S3 ??

At that price, 2 of them. You can get an RS3 for a little over 40k.

More seriously - if they "re-ran" the check, you'll now have 2 hard searches on your file as applications for credit. Those will also count negatively for the immediate future.