Wrong loan amount - what do I do?

plunket2808

Hi all - newbie here, so please forgive me if this is covered elsewhere (I did a search, but couldn't find anything relevant...)
This weekeend we took out a loan with Nationwide to buy a car - very easy process, and we got a great rate, with the loan paid out in less than an hour - so far so good.  However, we made the mistake of judging the car without driving it, and when we went to the dealership, discovered that what we felt was the perfect car was actually no good to us at all.  Doing some further research,we now realise we need to spend a bit more money and the loan we have is not enough.  
I've contacted Naitonwide who advise repaying the loan, waiting for a week and then re-applying in 8 days time, but I'm worried that our credit rating will be affected by this and we won't get the same good rate, or worse, we get turned down for the higher value, leaving us with no car and no cash.  In my mind, it should be simple for Nationwide to apply the same lending criteria to the higher amount and give us a decision, but it does not appear to work this way!
Can anyone advise?
Many sincere thanks in advance

sourcrates

Just save yourself the hassle and buy a cheaper car elsewhere my friend.

Don`t make things any more complicated than they have to be, there are literally thousands of dealerships, and millions of cars to choose from, surely you can find something suitable within your budget ?

plunket2808

sourcrates said:

Just save yourself the hassle and buy a cheaper car elsewhere my friend.

Don`t make things any more complicated than they have to be, there are literally thousands of dealerships, and millions of cars to choose from, surely you can find something suitable within your budget ?

Thanks for the advice and appreciate what you're saying, but this isn't about needing to meet the budget.  We need a car that is appropriate for my wife's daily commute (reliability and running costs) and that can accommodate bikes and camping gear or up to 7 passengers.  We aren't car enthusiasts and we just didn't do our research properly, basing our application on the wrong type of car for our needs.  On the deal we got at Nationwide, the increased monthly payment would be well within our budget, it's just about the best way of securing this.

p3ncilsharpener

plunket2808 said:

sourcrates said:

Just save yourself the hassle and buy a cheaper car elsewhere my friend.

Don`t make things any more complicated than they have to be, there are literally thousands of dealerships, and millions of cars to choose from, surely you can find something suitable within your budget ?

Thanks for the advice and appreciate what you're saying, but this isn't about needing to meet the budget.  We need a car that is appropriate for my wife's daily commute (reliability and running costs) and that can accommodate bikes and camping gear or up to 7 passengers.  We aren't car enthusiasts and we just didn't do our research properly, basing our application on the wrong type of car for our needs.  On the deal we got at Nationwide, the increased monthly payment would be well within our budget, it's just about the best way of securing this.

If Nationwide tell you you have to repay it and reapply, you have to repay it and reapply.

The alternative would be applying elsewhere, which runs the same risk of being declined or being offered a worse rate, but at least means you won't be entirely without a loan if things don't go your way.

sourcrates

There is no guarantee the new loan will be granted though.

At the moment credit files are taking much longer to update, if you repaid that loan, then applied for another, you may be declined due to affordability, or anyone of a dozen other reasons, then what will you do ?

I`m pretty sure I could find a suitable car, for the money you already have, in a few minutes online.

Is it a new car your looking at ?

You are aware cars can be delivered from anywhere in the country direct to your door, with a 14 day cooling off period ?

molerat

You have two simple choices.

1)  Buy a car with the money you have

or

2) Cancel the loan within the cooling off period, it will then be removed from your credit file but the searches will remain, and apply for a new loan with no guarantee of acceptance.

Roll the dice, do you feel lucky ?

Nebulous2

You're asking a lot of a car, a daily commuter and carrying bikes / camping gear or 7 passengers. Have you thought through all the options? How often do you actually camp and carry 7 people? If it is only a few times a year you might be better with a cheap small car for commuting and hire a van / minibus for the camping expeditions.

I've extensive experience of carrying bikes in, on top of or behind a vehicle and in a trailer and they all have their drawbacks. In fact purchasing a vehicle generally involves a lot of compromises and with all you are trying to do a two vehicle solution may be best. It may be you are lurching from one unsuitable buy to another. There wont be a perfect car for such varying needs. 

That's a diversion - but you haven't given us figures on how much you borrowed and how much you now think you need. If you have met most of your funding requirements with the loan and it is at a very low rate (around 3%) I wouldn't put it back. I'd be topping it up from elsewhere, possibly dealer finance. 

DCFC79

plunket2808 said:

sourcrates said:

Just save yourself the hassle and buy a cheaper car elsewhere my friend.

Don`t make things any more complicated than they have to be, there are literally thousands of dealerships, and millions of cars to choose from, surely you can find something suitable within your budget ?

Thanks for the advice and appreciate what you're saying, but this isn't about needing to meet the budget.  We need a car that is appropriate for my wife's daily commute (reliability and running costs) and that can accommodate bikes and camping gear or up to 7 passengers.  We aren't car enthusiasts and we just didn't do our research properly, basing our application on the wrong type of car for our needs.  On the deal we got at Nationwide, the increased monthly payment would be well within our budget, it's just about the best way of securing this.

No savings ?