PCP finished, not sure if I will get approved for new loan.
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Danielle1985x
Posts: 29 Forumite
in Loans
Hi guys.
So my PCP is over and I am due to hand the car back in a month. I went to the garage yesterday and had a look at some new cars, found one I really like and put a deposit now.
I’ve paid my PCP on time every month for the past three years and never missed a payment. The finance company that I will be applying with, is the same one that I’ve been with for the last three years also.
I ruined my credit history last year by not paying back a Shop Direct account for 5 months in a row.
It was about £100. So stupid I know. I’ve been so careful since this and not been late or missed any payments, set up DDs for everything etc.
I am super worried about not passing the credit check. Will the finance company take in to account the fact I’ve never misssed or been late with a payment for them? Or is it just going to be an outright no?
So my PCP is over and I am due to hand the car back in a month. I went to the garage yesterday and had a look at some new cars, found one I really like and put a deposit now.
I’ve paid my PCP on time every month for the past three years and never missed a payment. The finance company that I will be applying with, is the same one that I’ve been with for the last three years also.
I ruined my credit history last year by not paying back a Shop Direct account for 5 months in a row.
It was about £100. So stupid I know. I’ve been so careful since this and not been late or missed any payments, set up DDs for everything etc.I am super worried about not passing the credit check. Will the finance company take in to account the fact I’ve never misssed or been late with a payment for them? Or is it just going to be an outright no?
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Comments
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No way of knowing, but your chances have certainy taken a knock.
Wouldn't it be super cheaper to buy a cheaper car for cash?0 -
We have no way of accessing the database.
Whats wrong with using cash, a used car.0 -
Danielle1985x wrote: »I am super worried about not passing the credit check. Will the finance company take in to account the fact I’ve never misssed or been late with a payment for them? Or is it just going to be an outright no?
They may decide to not bother with a credit check if you're continuing with them or may take into account your history with them.
Shame you put the deposit down on another car, you had the ability to get out of the PCP trap.0 -
They may decide to not bother with a credit check if you're continuing with them or may take into account your history with them.
Shame you put the deposit down on another car, you had the ability to get out of the PCP trap.
Why a shame? They might want a new car, work hard and use their money how they want to use it. Not everyone wants to drive around in an old car to save money for when they are dead.0 -
camelot1971 wrote: »Why a shame? They might want a new car, work hard and use their money how they want to use it. Not everyone wants to drive around in an old car to save money for when they are dead.
If you're getting a new car on finance you aren't using your own money but the finance company's because you don't have enough to buy it. If you did you'd not be buying it on finance.
Why does it mean you have to buy an old car if you don't buy on finance? I have enough in the bank to go buy a brand new replacement for my Mondeo or MX5 today outright in cash and still have five figures left.
And it isn't saving money for when you are dead, its about paying what something costs, not what something costs plus £1000+ in interest, its having some money so you don't have the bailiffs turn up if you lose your job and you don't have to go get loans where you repay over twice what you borrowed when the cooker breaks like that silly cow with the seriously bad makeup on the TV loan adverts. Its about not retiring and having to survive on £150 a week.0 -
I!!!8217;m a Business Manager in a franchised dealer group.
There is no clear cut answer - it depends on the lenders criteria. Subjectively, I have noted that the acceptances on existing customers do seem a little more likely in these cases.
Have you looked at your Experian score? Generally !!!8216;house finance!!!8217; (the manufacturer backed option) requires prime profiling, but there are brokers available for other options but you pay more interest. The dealership will ring you and ask permission to propose you elsewhere and see what terms they can get you.
So maybe see what they come back with. With a Pcp you can (lender dependent) defer paying the gfv and pay your normal monthly payment for up to a year- so there is probably another option aside from !!!8216;handing it back!!!8217;0 -
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If you're getting a new car on finance you aren't using your own money but the finance company's because you don't have enough to buy it. If you did you'd not be buying it on finance.
Why does it mean you have to buy an old car if you don't buy on finance? I have enough in the bank to go buy a brand new replacement for my Mondeo or MX5 today outright in cash and still have five figures left.
And it isn't saving money for when you are dead, its about paying what something costs, not what something costs plus £1000+ in interest, its having some money so you don't have the bailiffs turn up if you lose your job and you don't have to go get loans where you repay over twice what you borrowed when the cooker breaks like that silly cow with the seriously bad makeup on the TV loan adverts. Its about not retiring and having to survive on £150 a week.
I'm about to buy a new car. The finance rate is 0% APR. I have and continue to save for my pension. I have savings.
Just because YOU see no value in a new car doesn't mean everyone should. Do you buy second hand clothes? I hope so, why "waste" money on something new. Better put some more money in the pension so when you retire you can, er, do what exactly?0 -
camelot1971 wrote: »I'm about to buy a new car. The finance rate is 0% APR. I have and continue to save for my pension. I have savings.
Just because YOU see no value in a new car doesn't mean everyone should. Do you buy second hand clothes? I hope so, why "waste" money on something new. Better put some more money in the pension so when you retire you can, er, do what exactly?
Each to their own....
Some people must see value in new cars otherwise people would not buy them! Whether this is simply the new factor, the warranty, status or whatever. They are happy to spend their disposable income on this or borrow money to finance it - which of course is the opportunity cost of doing something else with the money e.g. buying something else or having a relatively more prosperous retirement down the line.
Likewise other people hate the idea of buying a depreciating asset where they lose 20% of the value the day it is driven out of the showroom and will wait for 3 or 4 years to buy it off the person who bought a new car.
That's how the market works...I buy 2nd hand quality clothes but I would not be able to if someone didn't buy the stuff new in the first place!!!0 -
because you don't have enough to buy it. If you did you'd not be buying it on finance.
Not necessarily true. I bought a new car late last year on finance because of all the discounts that were not available for a cash customer. I left it a couple of months and then paid the whole lot off from my savings. I reckon I saved around £3K by doing this. Not everyone uses finance because they have to.I used to think that good grammar is important, but now I know that good wine is importanter.0
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