BMW Finance Decline
Discussion
Ok so I've had bmw finance on various car's for about 10-15 years now got a knock back on application for a Yas Marina Competiion Pack M3, checked the equifax and stuff.
Currently sitting at 760 out of 999, only negative factors from the martin money saver credit plus club thing says credit utilisation is pants cos I only have 1 credit card and it's got a 3 grand limit and a 2500 balance so looks like I'm maxing out probably which will pull it down. I was paying this off this week anyway so it's not a big deal I moved house at start of the year but cos I don't really have other cards or stuff it's maybe reading to the underwriters like I'm maxing everything and struggling?
The only other negative's I can see on my score is the obvious recent searches by BMW for the knock back applications 2 of them and then I VT'd my old F30 330d to them in December last year would that hurt my new application
I have a couple of late payments here and there over a 2 year period just through forgetting I know this isn't great but it's nothing excessive no mega late payments or defaults or anything?
I know this isn't a credit specialist website but would assume since lot of guys buying on finance then will be clued up on the chances of a successful application upon completing the above plan?
Currently sitting at 760 out of 999, only negative factors from the martin money saver credit plus club thing says credit utilisation is pants cos I only have 1 credit card and it's got a 3 grand limit and a 2500 balance so looks like I'm maxing out probably which will pull it down. I was paying this off this week anyway so it's not a big deal I moved house at start of the year but cos I don't really have other cards or stuff it's maybe reading to the underwriters like I'm maxing everything and struggling?
The only other negative's I can see on my score is the obvious recent searches by BMW for the knock back applications 2 of them and then I VT'd my old F30 330d to them in December last year would that hurt my new application
I have a couple of late payments here and there over a 2 year period just through forgetting I know this isn't great but it's nothing excessive no mega late payments or defaults or anything?
I know this isn't a credit specialist website but would assume since lot of guys buying on finance then will be clued up on the chances of a successful application upon completing the above plan?
IanCress said:
I have heard that finance companies don't take too kindly to customers VT'ing cars. Although it goes on your credit report as being satisfactorily completed, the finance house themselves may 'blacklist' you.
This is trotted out by car salesmen quite often usually after they have given you a PX value that puts you in a little bit of neg eqGM finance wrote a letter to my dad when he VTed a Vauxhall saying “thanks for settling your agreement, we would love to give you finance again in the future” or whatever, which they then immediately did for another car....
So other than the obvious sit and wait and pay bills on time I would assume sitting at 760 I’m not gonna get anywhere soon by paying off the balance on the credit card and getting the boost from the utilisation ratio?
I have been approved for bad car finance like 15-18% Apr crap up to like 25k but obviously the bmw pcp finance is the high end of the market and would need better score than current I assume but even if I boost it up then the late payments will just give me an instant no?
I have been approved for bad car finance like 15-18% Apr crap up to like 25k but obviously the bmw pcp finance is the high end of the market and would need better score than current I assume but even if I boost it up then the late payments will just give me an instant no?
xjay1337 said:
How can you "forget" to pay when everything is on D/D?
I'd think you'd have to just wait or get a loan on the car if you can do that instead.
This. Think you'll also struggle to get approved for a loan at a decent rate though.I'd think you'd have to just wait or get a loan on the car if you can do that instead.
Make sure you're on the electoral roll if you moved recently.
I’ve read both sides of the coin on the VT thing too but been assured by Bmw salesmen and Bmw finance customer service reps that VT will not hurt my score with Bmw finance so wether that’s a line or not I dunno.
I was approved in December when I done the VT for a cheap e92 330d from a Bm retailer in London but it was 2 weeks before Xmas and they dicked me about on the sales handover date I lost 200 pounds on flights and the sales manager answer to the problem they caused me was taking 200 off the price of the e92 and I should book more flights and I just fell out with them cos of that.
Bm finance told me to VT the previous car in order to gain the finance to get the e92.
On the subject of maxing finance I do have 39k on HP outstanding for my 997 911 to Clydesdale asset finance but all applications I’ve made to Bmw and actually to Clydesdale have been in settling that agreement so I assumed when I got 2 knockbacks the late payments must been what screwed me up and I better buckle down for a year or so but upon checking the MSE credit club thing it just says it’s credit utilisation and debt to earnings ratio I have my mortgage as only other debt at 500 a month and I do earn good money and been approved 50k finance deals in the past so I’m kinda unsure.
I was approved in December when I done the VT for a cheap e92 330d from a Bm retailer in London but it was 2 weeks before Xmas and they dicked me about on the sales handover date I lost 200 pounds on flights and the sales manager answer to the problem they caused me was taking 200 off the price of the e92 and I should book more flights and I just fell out with them cos of that.
Bm finance told me to VT the previous car in order to gain the finance to get the e92.
On the subject of maxing finance I do have 39k on HP outstanding for my 997 911 to Clydesdale asset finance but all applications I’ve made to Bmw and actually to Clydesdale have been in settling that agreement so I assumed when I got 2 knockbacks the late payments must been what screwed me up and I better buckle down for a year or so but upon checking the MSE credit club thing it just says it’s credit utilisation and debt to earnings ratio I have my mortgage as only other debt at 500 a month and I do earn good money and been approved 50k finance deals in the past so I’m kinda unsure.
Always been on electoral roll at that address for over 15 years I moved in with a girlfriend but still had that property and yeah I appreciate the forgetting to pay thing I’ve always been very organised and paid on DD but it’s juat one card cos that’s all I’ve had and it’s been for piddly amounts but living more with the girlfriend and having mail redirected etc and no DD set up has meant I’ve missed couple.
I don't think the personal loan thing will ever be viable cos they are probably harder to get than dealer finance cos there is no asset attached to it also you couldn't have two sets of loans from them the bank would pay bmw directly the cash lump sum for the car and you pay the bank back then taking bmw finance out the equation but as I've said clydesdale knocked me back aswell so I had gave up thinking it's a late payment thing and my own fault however checking the MSE Credit Club thing seemed to suggest I wasn't as far away as I maybe thought if I paid the current balance on credit card off.
Derek 911 said:
I don't think the personal loan thing will ever be viable cos they are probably harder to get than dealer finance cos there is no asset attached to it also you couldn't have two sets of loans from them the bank would pay bmw directly the cash lump sum for the car and you pay the bank back then taking bmw finance out the equation but as I've said clydesdale knocked me back aswell so I had gave up thinking it's a late payment thing and my own fault however checking the MSE Credit Club thing seemed to suggest I wasn't as far away as I maybe thought if I paid the current balance on credit card off.
? Personal loans have far better rates. I took out one for my recent car and the interest rate might as well be zero, there's no early repayment charge either on any amount. Depends on the amount you'd have to borrow and what you're already doing. I used a loan as the interest rates were lower than the growth on my shares so figured I'd end up better off in the long run. I tend not to borrow money on anything else mind as I can't stand owing money to anyone.IanCress said:
I have heard that finance companies don't take too kindly to customers VT'ing cars. Although it goes on your credit report as being satisfactorily completed, the finance house themselves may 'blacklist' you.
You're absolutely right.Although voluntary termination provides a safety net for consumers, it generally loses the finance company money. Usually, you haven’t paid off enough to cover your car’s depreciation, so the finance company is taking back a car which is worth less than the outstanding finance amount.
Understandably, finance companies do not like this one bit. But there is nothing they can do to stop it as the law protects termination rights.
The reality is if you do voluntary termination properly, they can’t stop you. What’s more, voluntary termination will not affect your credit score or credit rating. However, some finance companies may decline any further finance applications from you. And you can't blame them.
Derek 911 said:
I don't think the personal loan thing will ever be viable cos they are probably harder to get than dealer finance cos there is no asset attached to it also you couldn't have two sets of loans from them the bank would pay bmw directly the cash lump sum for the car and you pay the bank back then taking bmw finance out the equation but as I've said clydesdale knocked me back aswell so I had gave up thinking it's a late payment thing and my own fault however checking the MSE Credit Club thing seemed to suggest I wasn't as far away as I maybe thought if I paid the current balance on credit card off.
No idea in your case but I was able to get 28k at 6% over 5 years within 24hours , online only no forms, not secured.You can do some loan comparisons with MSE etc, might be worth a look.
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