What checks are car loan applications subjected to with regard to obligations on other cars?

Farmingtons

MrFrugalFever said:

When I propose information to a well known consumer finance service, I have the ability to upload documents and make brief notes to the underwriting team to support the application. I would imagine, as an application to a bank or other lender by yourself won’t allow this, you’ll have some form of chance AFTER an application has gone through, I.e. the 7 day right of appeal. Often evidence and explanation can be provided at that stage I believe.

Thank you very much.  I was hoping this would be the case just because I figured there would be lot of cases where the end of one car and the start of a new one often overlapped.  Gives me a bit of hope.  At least I have a Plan B.

MrFrugalFever

The issue you have is that you’ll be applying for an unsecured loan which ultimately will be viewed as ‘in addition to’, however, with a contract hire leasing agreement there’s no real lump sum amount owed it’s simply just set monthly payments for a fixed term so perhaps it’s more of a case of how much you can afford monthly as opposed to how much debt you’re in? 

As always, do your eligibility checks first and if looking at a specific car loan that’s secured you may get the chance to submit a note during application, especially worth doing if with the same lender as leasing finance.

Farmingtons

MrFrugalFever said:

The issue you have is that you’ll be applying for an unsecured loan which ultimately will be viewed as ‘in addition to’, however, with a contract hire leasing agreement there’s no real lump sum amount owed it’s simply just set monthly payments for a fixed term so perhaps it’s more of a case of how much you can afford monthly as opposed to how much debt you’re in? 

As always, do your eligibility checks first and if looking at a specific car loan that’s secured you may get the chance to submit a note during application, especially worth doing if with the same lender as leasing finance.

Gotcha.  My monthly lease amount isn't a King's ransom, but I always get jittery when applying for anything - I might be in the clear even with it.  Just want to know what my possible avenues and options are before I get stuck in!

Herzlos

It's pretty standard to apply for a car loan whilst still having a car loan, because normally the first one is only cleared when the cars are exchanged, so they should understand it.

phillw

Herzlos said:

It's pretty standard to apply for a car loan whilst still having a car loan, because normally the first one is only cleared when the cars are exchanged, so they should understand it.

Is it standard? How would they know you wouldn't just keep both cars?

DrEskimo

phillw said:

Herzlos said:

It's pretty standard to apply for a car loan whilst still having a car loan, because normally the first one is only cleared when the cars are exchanged, so they should understand it.

Is it standard? How would they know you wouldn't just keep both cars?

Yea I don't think it is either.

Not to mention the OP is looking at an unsecured loan for a car, whilst having a lease payment active.