Alphabet Alphadrive
Alphabet Alphadrive
Author
Discussion

Mackle

Original Poster:

27 posts

115 months

Wednesday 19th April 2017
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I've joined an organisation that offers the BMW Finance "Alphadrive scheme" as part of their benefits package - so instead of being salary sacrifice, it comes out of the benefit points allowance that each employee is free to spend.

What I am finding quite odd about this though, is that despite the fact that the organisation pay Alphabet directly and nothing is sacrificed from the employees salary, part of the car order process is a successful credit check of the employee.

Does anyone know how strict this process is, as don't want to order a car if it screws up my credit rating and then get told that Alphadrive aren't going to let my employer pay for the vehicle, and cancel the order!


Any details on this part of Alphadrive would be gratefully received smile

Challo

12,888 posts

186 months

Wednesday 19th April 2017
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My girlfriend and her 2 sisters all work for Alphabet and have cars on the Alphadrive scheme. Unfortunately I'm not sure how the credit piece work and if it impacts your credit rating. I would have thought as technically your not paying for the car, and Alphabet manage the finance piece you wont need to worry.

If its good credit then would it not improve your credit rating?

Just to add do you have a poor a credit rating now? I think as they are loaning you money they need to run the credit check, but neither my gf or her sisters have fantastic credit ratings and none of them suffered or declined the car.



Edited by Challo on Wednesday 19th April 15:37

Mackle

Original Poster:

27 posts

115 months

Wednesday 19th April 2017
quotequote all
I was thinking that if the Alphadrive car added say a £30/£35K credit agreement on to my credit file, that could have a negative effect on what I could borrow as a mortgage whilst I've got the car. Or doesn't it work like that?

Challo

12,888 posts

186 months

Wednesday 19th April 2017
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Mackle said:
I was thinking that if the Alphadrive car added say a £30/£35K credit agreement on to my credit file, that could have a negative effect on what I could borrow as a mortgage whilst I've got the car. Or doesn't it work like that?
All of the girls rent, but we are in the process of looking to apply for a mortage so its something to maybe be aware of in the future. I think you will need to speak to HR and understand how it works as they should know.

Mackle

Original Poster:

27 posts

115 months

Friday 21st April 2017
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The official answer from Alphabet:-

With regards to your email in reference to the credit check, this will show as outstanding finance on your credit file. This is an employee loan scheme so will show as any other loan would do. In regards to whether this will impact your credit score, it could do as is an outstanding loan. Even though the car can be taken as part of your company benefit points, this is still a loan in your own name so as part of the FCA regulations a credit check must be carried out to proceed. This is in line with the policy set out between your employer and Alphabet.


So if for arguments sake I was to get a 440i, that's a £40K finance agreement against my name - for a car that I'm not actually paying for.

AB

20,644 posts

226 months

Tuesday 25th April 2017
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My 435d never showed up on my credit file when I did a search. They did credit check me though.

I wasn't in any scheme other than my brother working for BMW so was eligible was what was a decent deal back then. The prices seemed to rocket end of last year meaning it wasn't as competitive as it was.

Challo

12,888 posts

186 months

Tuesday 25th April 2017
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Mackle said:
The official answer from Alphabet:-

With regards to your email in reference to the credit check, this will show as outstanding finance on your credit file. This is an employee loan scheme so will show as any other loan would do. In regards to whether this will impact your credit score, it could do as is an outstanding loan. Even though the car can be taken as part of your company benefit points, this is still a loan in your own name so as part of the FCA regulations a credit check must be carried out to proceed. This is in line with the policy set out between your employer and Alphabet.


So if for arguments sake I was to get a 440i, that's a £40K finance agreement against my name - for a car that I'm not actually paying for.
Not sure how this will screw up your credit rating??

VerySideways

10,272 posts

303 months

Tuesday 25th April 2017
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Challo said:
Not sure how this will screw up your credit rating??
It won't screw it up, but it will show as money you owe, which means they might not be willing to lend as much on the mortgage.