Any info on why I would be unlikely to be accepted for loan?

Nasqueron

[Deleted User] said:

Nasqueron said:

MEM62 said:

@Conor19 Do you really want to borrow £10K and pay interest on it to buy an asset with a value that falls like a stone?  You can't help the fact that a car depreciates in value but if you save for it you at least minimise your losses.  

Does anyone buy a car with the intent of selling it for a profit? You buy something, you use it, it is worth less than it was before, that is how things work, very few things appreciate in value after purchase (and particularly with use). Someone buying a car intending to use it for years for what it's intended for has got the value that they "lost" by the depreciation fake cost. The only people who are really genuinely affected by it are people who buy with the intent of selling or using the car as a deposit for the next like on PCP, your average person should never care about this nonsense 

Regarding your last sentence about PCP, that is probably about 90 per cent of people who buy cars! 

Of course cars are a depreciating asset, but why lose more by paying interest as well? Fortunately I see my car as a means of transport and not a status symbol. I buy my cars for cash and never brand new. Current car is 2016 model and cost £13000 in 2018 now currently worth just over £7000, so not doing too badly.

PCP makes up just 13% of car sales - cash is 59.8%, bank loan 8.7%, HP 6.6% and lease 5.8%. You can't assume everyone who buys on PCP also sells after 3 years.

Plenty of 0% finance available

You could equally argue why buy a house with a mortgage - you should buy cash to save interest? We only decide that houses are appreciating because that is the way our society wants it to be. Japan has a huge number of houses built as depreciating assets, after 20 or so years they knock them down and build new ones, they don't see a house as something you must buy then magically it becomes worth more because it's a year old, it's a farce. People take out loans all the time, interest is part and parcel.

Again though, car depreciation is not a cost of owning a car, there is no bill or invoice for depreciation, only if you bought a car with the intention of selling it and trying to recoup money, without using it, would it be relevant. You use something, it's worth less over time, as with almost everything.

In 2014 I bought new car, it's 2023, still waiting to pay the cost of depreciation, still driving it

[Deleted User]

I was referring to new cars where percentage of PCPs is just over 80 per cent.

enthusiasticsaver

There could be no end of reasons why you have been declined assuming nothing untoward on your file.  It could be you do not fit their risk criteria or you may have recently moved or not worked in your current employment for long enough, not registered on electoral roll, affordability etc etc. I would check your credit file as a first step.