BMW Finance Decline

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Discussion

Derek 911

Original Poster:

161 posts

76 months

Thursday 22nd March 2018
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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?


Toaster Pilot

14,615 posts

157 months

Thursday 22nd March 2018
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Late payments will be a big no no when it comes to approving you I would have thought

Derek 911

Original Poster:

161 posts

76 months

Thursday 22nd March 2018
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I did think that too to be honest but the MSE credit club thing attempts to give you the reasons why your application looks bad to lenders and it’s only mentioned utilisation ratio.

RM88

82 posts

109 months

Thursday 22nd March 2018
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Finance companies won't be able to see the amounts that you missed so it will just be marked as late payment. Unfortunately it could be a few £ on a mobile phone contract or hundreds on a car etc it'll just be marked as a late payment. These are a killer when applying for finance.

Toaster Pilot

14,615 posts

157 months

Thursday 22nd March 2018
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Not sure using nearly all of a £3k credit card is that big a deal - if you had £60k available to you and were maxing it out that’s a lot different

IanCress

4,409 posts

165 months

Thursday 22nd March 2018
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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.

Toaster Pilot

14,615 posts

157 months

Thursday 22nd March 2018
quotequote all
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 eq

GM 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....

Derek 911

Original Poster:

161 posts

76 months

Thursday 22nd March 2018
quotequote all
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?

xjay1337

15,966 posts

117 months

Thursday 22nd March 2018
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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.

GregK2

1,651 posts

145 months

Thursday 22nd March 2018
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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.
Make sure you're on the electoral roll if you moved recently.

AllyBassman

779 posts

111 months

Thursday 22nd March 2018
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Could be the change of address too? Have you updated the records to show your change of address on all finance agreements? I assume you're on the electoral role for the new property too?

Could be a number of things


RM88

82 posts

109 months

Thursday 22nd March 2018
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Late payments can stay on your file for 7 years so it really depends how many you've got and when they were but yes I'd imagine that they won't be helping and continuing to apply won't help either.

Derek 911

Original Poster:

161 posts

76 months

Thursday 22nd March 2018
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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.

Derek 911

Original Poster:

161 posts

76 months

Thursday 22nd March 2018
quotequote all
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.

MDMetal

2,775 posts

147 months

Thursday 22nd March 2018
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Do you have to buy the car through BMW finance? Could you not just get a chunky personal loan pop it in an account and just pay BMW monthly? I'll admit I have no clue how these things work but surely the deal is £x a month not £x a month only through BMW finance?

Derek 911

Original Poster:

161 posts

76 months

Thursday 22nd March 2018
quotequote all
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.

MDMetal

2,775 posts

147 months

Thursday 22nd March 2018
quotequote all
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.

anonymous-user

53 months

Thursday 22nd March 2018
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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.



Bumblebee7

1,527 posts

74 months

Thursday 22nd March 2018
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I think the late payments and the change of address were the biggest factors. My OH has an excellent credit rating but two years ago was declined on a phone contract as she'd just changed address two months prior.

xjay1337

15,966 posts

117 months

Thursday 22nd March 2018
quotequote all
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.