Car Finance Rejected after originally been accepted

Gurn34

Based on the replies, all of which are appreciated, should the dealership of asked for a deposit for ordering the vehicle knowing that later on, that due to changes in a person's individual circumstances (ie credit score etc), that finance for the vehicle maybe declined and they may a unwanted vehicle?

[Deleted User]

Yes, they should. It enables you to secure the vehicle.

Thrugelmir

Yes as the dealership is forced to take delivery and pay for,  a vehicle built to a given specification . That it now needs to sell. 

Gurn34

I was just checking my paperwork for when i took out the finance agreement for my old car with the same lender.  That too was also done in the early part of the year with delivery in September again i was originally approved for finance so i ordered the vehicle signed the documents to proceed.  Only difference this time was that due to Covid finance was approved however signed no documents as no documents were sent to me or dealership.  Maybe processes change and i have just been unfortunate in that this is just a lesson in life that nothing can be guaranteed until you have the keys in your hand

MattMattMattUK

Can you actually afford the vehicle and what is it that makes your credit record poor? You may be able to get a personal loan/car finance loan via another method, but it would be for the full balance so payments would likely be higher.

Gurn34

My previous agreement was with the same lender and for a much higher value than the new agreement and all payments were made on time and the agreement fiinished in October. I had gone into the dealership to discuss options (pay balloon, return car etc) and after speaking with the salesperson decided that only if finance agreement was accepted would i place an order for car.  Dealership came back to me after providing lender with my details and finance proposal was accepted  From that time to November I had carried out no searches or new credit.    With regards to my credit report i have noticed some late payments however i have spoken to the company in question and they have files a complaint as it seems that this has been a gitch on their system has payments were made on time however this could take a while to update the credit report.
My only annoyance is that i got notified two days before collecting car by dealership that i had been declined after originally be approved the finance. Why could this have not happened much earlier in the process?.

[Deleted User]

Because final checks are always carried out at the end of the process.  They won't run multiple interim checks - not just because of resource, but because customers don't like multiple searches and neither do FOS.  

DCFC79

Gurn34 said:

Based on the replies, all of which are appreciated, should the dealership of asked for a deposit for ordering the vehicle knowing that later on, that due to changes in a person's individual circumstances (ie credit score etc), that finance for the vehicle maybe declined and they may a unwanted vehicle?

It definitely wasn't based on your score as only you can see it, lenders etc see your history, they may well use an in house scoring system and base a decision on that.

Gurn34

Does not having a previus agreement with the lender and how that was operated not help in decision making as new agreement would be significantly lower than previous agreement ?

[Deleted User]

Yes - you asked this further upstream.