BMW Finance Decline
Discussion
So reading this..
You’ve got a Porsche that you owe 39k on and have roughly 3k equity.
You want to from HP (ownership and amortising facility) to a PCP an M3 with a 1.5k deposit.
You want to keep your payments at circa 5/600.
You’ve missed some payments (recently).
And your wondering why it’s turned down?!
My view would be speak to Clydesdale see if they will give you an another HP deal (even with a bubble/bullet) at the end on the M3, you have track record with them, perhaps they will even put you in touch with a dealer who deals with BMW etc.
Think you’ll need to put a bit more in upfront to sastisfy the lender tbh...
You’ve got a Porsche that you owe 39k on and have roughly 3k equity.
You want to from HP (ownership and amortising facility) to a PCP an M3 with a 1.5k deposit.
You want to keep your payments at circa 5/600.
You’ve missed some payments (recently).
And your wondering why it’s turned down?!
My view would be speak to Clydesdale see if they will give you an another HP deal (even with a bubble/bullet) at the end on the M3, you have track record with them, perhaps they will even put you in touch with a dealer who deals with BMW etc.
Think you’ll need to put a bit more in upfront to sastisfy the lender tbh...
MDMetal said:
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?
Except by financing through BMWFS you'll get a chunky deposit contribution and generally 0% at the moment, neither of which you'll get by taking out a personal loan for the price of the car without the deposit contribution. Unsecured loans for over £25k aren't so straightforward to obtain either without going through house valuation and having sufficient equity as collateral etc. From a sanity perspective do you need these cars?
You've got a Porsche with a big outstanding balance and you want an M3 with a nominal deposit, but you've missed payments on the last (?) car you had? On the face of it that sounds like someone living beyond their means, to be brutally honest.
You've got a Porsche with a big outstanding balance and you want an M3 with a nominal deposit, but you've missed payments on the last (?) car you had? On the face of it that sounds like someone living beyond their means, to be brutally honest.
ScoobyChris said:
May be worth checking out ClearScore which is free and lets you view your credit report as well as flagging up things you can work on to improve it. App or website.
Chris
Good advice. Chris
On that note, don't forget there are three individual credit reference agencies used by lenders in the UK. The big two are Equifax and Experian, with CallCredit being the smallest.
There are free sites that give you an overview of each. ClearScore, mentioned above, checks your details against Equifax, the MSE Credit Club checks them against Experian, and Noddle checks them against (and is part of) CallCredit. Internet rumours vary on which lender uses which, but all the sites are free to use. If the overview highlights an issue with any agency, you can then request a copy of your credit report from the appropriate reference agency to see the detail, and get it corrected if appropriate.
The reference agency sites themselves will try to railroad you into signing up for a monthly subscription. Don't fall for this when you can simply pay £2 for a copy of your statutory credit report which has the same data the lenders see when you apply.
http://www.experian.co.uk/consumer/statutory-repor...
https://www.equifax.co.uk/Products/credit/statutor...
https://www.callcredit.co.uk/consumer-solutions/yo...
I wouldn't touch an M3 at the moment (or I'd want *massive* discount). They're about to be discontinued, because of emissions, and in readiness for the new model.
BMW price them high, offer large finance contributions and then depreciate like a stone. Never buy a new beemer, get an ex-demo and save yourself £1000's. I got £11000 off a 440i with 500 miles on the clock.
And with so little deposit, you will be in negative equity the whole way until you return it. You will be stuck with it, and when the new one comes out - you'll want that!
BMW price them high, offer large finance contributions and then depreciate like a stone. Never buy a new beemer, get an ex-demo and save yourself £1000's. I got £11000 off a 440i with 500 miles on the clock.
And with so little deposit, you will be in negative equity the whole way until you return it. You will be stuck with it, and when the new one comes out - you'll want that!
boitjie said:
BMW price them high, offer large finance contributions and then depreciate like a stone. Never buy a new beemer, get an ex-demo and save yourself £1000's. I got £11000 off a 440i with 500 miles on the clock.
You can get £10k off a brand new one so that's not the bargain it seems
To the comments on missing payments on the Porsche I never have it’s one credit card which I didn’t have direct debit set up for and it’s more on a forgetfulness factor than any kind of affordability.
I was running the 330d as a daily and had the 911 as a wkend car for most of last year it is not an affordability factor or me living beyond my means Clydesdale confirmed happy with affordability I was living with my girlfriend and not on top of my bills at my own house with the credit card only being the problem not clever I know and it’s my fault but it’s not an isssue with affording it.
Also for the later reasons mentioned about it depreciating like a stone that’s the whole point in pcp having 10 grand sitting in the Bank I wouldn’t put it into the bmw anyway cos it’s going to go over night monthly payments on my Porsche are £698 monthly payments on my old 330d which I had both at same time last year was £589 so I can afford it and no I’m not necessarily wanting to keep my payments to 500/600 I would consider a couple of options depending on the car younger than 18 months I would probably pcp it with little to no money in cos I don’t see point in owning a badly depreciating asset.
If older maybe 2-3 years value of 35-45k I’d probably put 10 grand down and pay off the rest over 24-36 months so assuming I’m living beyond my means is a little insulting I’m not gonna take a screenshot of my bank balance or say my wages but let’s assume for the benefit of doubt and based on the above that I’m ok with affordability and it’s more related to my silly missed payments maybe credit utilisation and the fact I have a big debt over my head with the porker so I could fix the last 2 quickly the first 1 would take some time my question is am I likely to be accepted upon fixing the issues that I can within my control?
Opinions?
I was running the 330d as a daily and had the 911 as a wkend car for most of last year it is not an affordability factor or me living beyond my means Clydesdale confirmed happy with affordability I was living with my girlfriend and not on top of my bills at my own house with the credit card only being the problem not clever I know and it’s my fault but it’s not an isssue with affording it.
Also for the later reasons mentioned about it depreciating like a stone that’s the whole point in pcp having 10 grand sitting in the Bank I wouldn’t put it into the bmw anyway cos it’s going to go over night monthly payments on my Porsche are £698 monthly payments on my old 330d which I had both at same time last year was £589 so I can afford it and no I’m not necessarily wanting to keep my payments to 500/600 I would consider a couple of options depending on the car younger than 18 months I would probably pcp it with little to no money in cos I don’t see point in owning a badly depreciating asset.
If older maybe 2-3 years value of 35-45k I’d probably put 10 grand down and pay off the rest over 24-36 months so assuming I’m living beyond my means is a little insulting I’m not gonna take a screenshot of my bank balance or say my wages but let’s assume for the benefit of doubt and based on the above that I’m ok with affordability and it’s more related to my silly missed payments maybe credit utilisation and the fact I have a big debt over my head with the porker so I could fix the last 2 quickly the first 1 would take some time my question is am I likely to be accepted upon fixing the issues that I can within my control?
Opinions?
Blanchimont said:
I've recently got a 1 series with BMW FS and have a worse credit rating that you, but got accepted no issues. As the general concensus on here seems to be, it's the missed payments causing the issue IMO.
I was accepted on an e92 in December by bmw for 15kish purchase price I was VT’ing my 330d and just getting something equivalent but older and cheaper as a daily to keep the Porsche but the dealer Berry Chiswick let me down and missed sales handover date as I explained. I think the M3 credit issue might be bcos it’s a higher amount and more risk to them I’m not sure I may have got approved if I was looking at a15k loan again
Some lenders won't go near someone who has a VT on their credit profile.
Alphera don't discriminate though, discussed this before with them - and they are BMW's finance provider.
Edit: just read the part about the missed payments ... kinda self explanatory why you could get knocked back, that and the higher cost of an M3 on finance
Alphera don't discriminate though, discussed this before with them - and they are BMW's finance provider.
Edit: just read the part about the missed payments ... kinda self explanatory why you could get knocked back, that and the higher cost of an M3 on finance
Derek 911 said:
Also for the later reasons mentioned about it depreciating like a stone that’s the whole point in pcp
Well you'll still be the one paying the depreciation with PCP. 
The deposit only effects the monthly payments. As you probably know the balloon is only going to be slightly higher than it's value. As per your other thread
https://www.pistonheads.com/gassing/topic.asp?h=0&...
You’ve had the 911 for less than a yr, meaning you’ve taken on a commitment of x for x months and a large debt is now outstanding (all be it serviced) on record.
Your previous bmw car finance (as you’ve stated 15yrs) is unblemished.
Your VT to me (a lender) would not sit well, as I would have paid finance commission (as well as the purchase price to the dealer) on the basis that the debt would be serviced I would have a shortfall of interest, on top of paying out the commission and I’m left owning a car that I have little interest in ( yep it’s part of the business), and have to dispose of.
You have purchased a very nice car but less than 12 months in your looking to change/add to your garage.
My question (underwriting) would be how long before we are looking at another VT as theres no equity (as your putting in the minimum).
I’d have to ask you why not a 12/18 month PCH, as it would seem to be a better fit for you?
https://www.pistonheads.com/gassing/topic.asp?h=0&...
You’ve had the 911 for less than a yr, meaning you’ve taken on a commitment of x for x months and a large debt is now outstanding (all be it serviced) on record.
Your previous bmw car finance (as you’ve stated 15yrs) is unblemished.
Your VT to me (a lender) would not sit well, as I would have paid finance commission (as well as the purchase price to the dealer) on the basis that the debt would be serviced I would have a shortfall of interest, on top of paying out the commission and I’m left owning a car that I have little interest in ( yep it’s part of the business), and have to dispose of.
You have purchased a very nice car but less than 12 months in your looking to change/add to your garage.
My question (underwriting) would be how long before we are looking at another VT as theres no equity (as your putting in the minimum).
I’d have to ask you why not a 12/18 month PCH, as it would seem to be a better fit for you?
boitjie said:
I wouldn't touch an M3 at the moment (or I'd want *massive* discount). They're about to be discontinued, because of emissions, and in readiness for the new model.
BMW price them high, offer large finance contributions and then depreciate like a stone. Never buy a new beemer, get an ex-demo and save yourself £1000's. I got £11000 off a 440i with 500 miles on the clock.
New model M3 won't be here for 2 years, the end of production on the M3 won't negatively affect values either BMW price them high, offer large finance contributions and then depreciate like a stone. Never buy a new beemer, get an ex-demo and save yourself £1000's. I got £11000 off a 440i with 500 miles on the clock.
As for your 440i deal, you can get circa 11k off a 440i on a factory order I'd have wanted more off a demo model that has been ragged from cold.
DeolTheBeast said:
Some lenders won't go near someone who has a VT on their credit profile.
Alphera don't discriminate though, discussed this before with them - and they are BMW's finance provider.
Edit: just read the part about the missed payments ... kinda self explanatory why you could get knocked back, that and the higher cost of an M3 on finance
Was my initial thoughts but on checking the MSE credit club thing it doesn’t mention them just the credit utilisation and having the big debt out against the Porsche as others have said. Alphera don't discriminate though, discussed this before with them - and they are BMW's finance provider.
Edit: just read the part about the missed payments ... kinda self explanatory why you could get knocked back, that and the higher cost of an M3 on finance
Quite a bit of comment then on the late payments stopping me getting through my own fault for not being on top of it you can’t explain away it’s not an affordability thing tho as others have said they just see it in the scoring model and say no so fair enough.
Realistically I assume then I’m unlikely to get anything sizeable loan wise from alphera most likely for what like a year or something?
RM88 said:
Derek 911 said:
Also for the later reasons mentioned about it depreciating like a stone that’s the whole point in pcp
Well you'll still be the one paying the depreciation with PCP. The deposit only effects the monthly payments. As you probably know the balloon is only going to be slightly higher than it's value. Deesee said:
As per your other thread
https://www.pistonheads.com/gassing/topic.asp?h=0&...
You’ve had the 911 for less than a yr, meaning you’ve taken on a commitment of x for x months and a large debt is now outstanding (all be it serviced) on record.
Your previous bmw car finance (as you’ve stated 15yrs) is unblemished.
Your VT to me (a lender) would not sit well, as I would have paid finance commission (as well as the purchase price to the dealer) on the basis that the debt would be serviced I would have a shortfall of interest, on top of paying out the commission and I’m left owning a car that I have little interest in ( yep it’s part of the business), and have to dispose of.
You have purchased a very nice car but less than 12 months in your looking to change/add to your garage.
My question (underwriting) would be how long before we are looking at another VT as theres no equity (as your putting in the minimum).
I’d have to ask you why not a 12/18 month PCH, as it would seem to be a better fit for you?
Fair comments and I agree and understand mostly. https://www.pistonheads.com/gassing/topic.asp?h=0&...
You’ve had the 911 for less than a yr, meaning you’ve taken on a commitment of x for x months and a large debt is now outstanding (all be it serviced) on record.
Your previous bmw car finance (as you’ve stated 15yrs) is unblemished.
Your VT to me (a lender) would not sit well, as I would have paid finance commission (as well as the purchase price to the dealer) on the basis that the debt would be serviced I would have a shortfall of interest, on top of paying out the commission and I’m left owning a car that I have little interest in ( yep it’s part of the business), and have to dispose of.
You have purchased a very nice car but less than 12 months in your looking to change/add to your garage.
My question (underwriting) would be how long before we are looking at another VT as theres no equity (as your putting in the minimum).
I’d have to ask you why not a 12/18 month PCH, as it would seem to be a better fit for you?
Excuse my ignorance what is PCH?
Also I’ve kept all my other cars between 3-5 years all bmw saloon or coupe I’ve always wanted a 911 and it’s a box I’ve ticked I’ve got a son as a daily it’s limited obviously in hindsight I would not have VT’d the 330 I don’t particularly now want to put another car on the road and keep the 911 so my solution was just get the M3 as it combines the best bits of the car I aspired to own the Porsche 911 with the practically of what I’m use to and likely to keep.
I would imagine lots of 911 owners are in and out of the cars within 6-12 months hence when you look at secondhand cars they often have many owners at relative age of other cars.
Edited by Derek 911 on Thursday 22 March 20:44
Derek 911 said:
Deesee said:
As per your other thread
https://www.pistonheads.com/gassing/topic.asp?h=0&...
You’ve had the 911 for less than a yr, meaning you’ve taken on a commitment of x for x months and a large debt is now outstanding (all be it serviced) on record.
Your previous bmw car finance (as you’ve stated 15yrs) is unblemished.
Your VT to me (a lender) would not sit well, as I would have paid finance commission (as well as the purchase price to the dealer) on the basis that the debt would be serviced I would have a shortfall of interest, on top of paying out the commission and I’m left owning a car that I have little interest in ( yep it’s part of the business), and have to dispose of.
You have purchased a very nice car but less than 12 months in your looking to change/add to your garage.
My question (underwriting) would be how long before we are looking at another VT as theres no equity (as your putting in the minimum).
I’d have to ask you why not a 12/18 month PCH, as it would seem to be a better fit for you?
Fair comments and I agree and understand mostly. https://www.pistonheads.com/gassing/topic.asp?h=0&...
You’ve had the 911 for less than a yr, meaning you’ve taken on a commitment of x for x months and a large debt is now outstanding (all be it serviced) on record.
Your previous bmw car finance (as you’ve stated 15yrs) is unblemished.
Your VT to me (a lender) would not sit well, as I would have paid finance commission (as well as the purchase price to the dealer) on the basis that the debt would be serviced I would have a shortfall of interest, on top of paying out the commission and I’m left owning a car that I have little interest in ( yep it’s part of the business), and have to dispose of.
You have purchased a very nice car but less than 12 months in your looking to change/add to your garage.
My question (underwriting) would be how long before we are looking at another VT as theres no equity (as your putting in the minimum).
I’d have to ask you why not a 12/18 month PCH, as it would seem to be a better fit for you?
Excuse my ignorance what is PCH?
Alternatively, take a trip to Mercedes & try to get approved for a new AMG!
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