waiting on approval for car finance.

[bootnec]

Hi,

So i have applied for finance,which got denied,the finance rep i spoke to has asked for bank statements.

He said its not terminal and depending on what my statements look like will determine if finance approved.

My question is what exactly are they looking for? a large balance in my current account..evidence of bank charges? regular salary???

anyone else been in this situation??

cheers.

[jas xjr]

Have you tried your own bank first ? You would probably get a better deal from the

[AtticusFinch]

bootnec said:

Hi,

So i have applied for finance,which got denied,the finance rep i spoke to has asked for bank statements.

He said its not terminal and depending on what my statements look like will determine if finance approved.

My question is what exactly are they looking for? a large balance in my current account..evidence of bank charges? regular salary???

anyone else been in this situation??

cheers.

They are looking for a controlled income/expeniture and the ability to pay

[bootnec]

Hi mate no i havent actually,as the last time i got less than favourable rates,also im getting a ballon option at the end of the 3 years.

[stropley]

French car is it?

[crazy about cars]

First check would be credit history I think. If you fail that then more in-depth checks will be needed such as steady income, employment history etc.

[bootnec]

AtticusFinch said:

bootnec said:

Hi,

So i have applied for finance,which got denied,the finance rep i spoke to has asked for bank statements.

He said its not terminal and depending on what my statements look like will determine if finance approved.

My question is what exactly are they looking for? a large balance in my current account..evidence of bank charges? regular salary???

anyone else been in this situation??

cheers.

They are looking for a controlled income/expeniture and the ability to pay

so for instance if the amount being credited to the account is considerably higher than the amount getting deducted by the finance this should stnd me in good stead?

thanks for the replys so far.

[bootnec]

crazy about cars said:

First check would be credit history I think. If you fail that then more in-depth checks will be needed such as steady income, employment history etc.

well i failed the credit check,so this is the next option.

[bootnec]

stropley said:

French car is it?

jap.

[AtticusFinch]

bootnec said:

so for instance if the amount being credited to the account is considerably higher than the amount getting deducted by the finance this should stnd me in good stead?

thanks for the replys so far.

They will want see a well managed account. Enough left over each month to clear the finance. If you have £1000 pm income and want an £800pm finance deal this does not look good. (this situation is not that unusual as it sounds with people hiding cash income from the IR)

[avocado]

Are you sure you can afford this finance? Something clearly wrong somewhere.

[bootnec]

AtticusFinch said:

They will want see a well managed account. Enough left over each month to clear the finance. If you have £1000 pm income and want an £800pm finance deal this does not look good. (this situation is not that unusual as it sounds with people hiding cash income from the IR)

i see well im fairly confident the statements are in a healthy enough condition,no overdrught,and due to moving money around i have a high balance(for me)in the current account.

fingers crossed.

[bootnec]

avocado said:

Are you sure you can afford this finance? Something clearly wrong somewhere.

Hi mate yes its not an issue to be honest,although bad credit history years ago clearly is.

[james28]

sometimes having no credit cards loans bills actually goes against you.

[valiant1]

bootnec said:

Hi mate yes its not an issue to be honest,although bad credit history years ago clearly is.

If this bad credit was within the last 6 years it will go against you.


Agree with others in trying your own bank as they may be more flexilble with you.

The dealer may be trying sub-prime lenders for you but it will be at a higher APR.

[Fox-]

Given that car finance is so lax they don't even bother to ask for your annual income, something must have to be pretty wrong with your financial circumstances to get rejected for car finance. If this is the case is a financed car prudent?

[bootnec]

Fox- said:

Given that car finance is so lax they don't even bother to ask for your annual income, something must have to be pretty wrong with your financial circumstances to get rejected for car finance. If this is the case is a financed car prudent?

they have asked fo annual income,i suspect they eant the statements to verify what i have told them.

[bootnec]

im back in the UK mid feb i think i will pop into my bank and see what they say,i didnt even consider this before.

thanks.

[bootnec]

just to add the guy is well known and recommended by more than a few guys on another forum all of who,speak highly of him and got good deals/APR/ballon with him.

cheers.

[markcjd]

Be warned, bad things could be about to happen! I presume "finance rep" was the dealership business manager?

If you are looking at a manufacturer backed pcp (balloon payment) deal and have been instantly declined then there is no reason to ask for your bank statements. If you have yet to be accepted or declined then you may be a borderline case and the statements could make a difference.

What is far more likely to happen is the bad bit.

You have been declined by the first string lender/manufacturer's supported scheme. The business manager will now propose your details to every lender they use In turn until they secure an acceptance or strike out entirely.

There are 2 huge problems for you here. Firstly is the adverse effect upon your already troubled credit rating. Each search is recorded and more than 6 searches in a year will concern lenders and reduce your score. Each decline also affects your score and will again alarm potential lenders.

Secondly, assuming this was a manufacturer led pcp offer, they are unlikely to secure an identical deal due to variance in interest rates and residual values. As the dealership progresses through their lenders the interest charges will increase and you will pay more.

I would suggest talking to your dealer urgently and clarifying their intentions.