PCP Acceptance Rates...

[Progject]

Been aiming to buy a car using PCP finance but I'm just waiting to complete on my new house first, as I can't risk getting any hard credit searches on my record just incase the mortgage lender decide to do a last minute check.

Anyway, having spoken to guys like Magnitude Finance and etc, I was told this is never a problem, so I'm not worried about having just taken out a mortgage.

Now I'm worried about something a dealer told me today as I'm eying up the car I want - the salesmen told me that currently lenders are choosing not to lend to a lot of customers right now. He told me that he had a customer who had "good credit" was rejected by two different lenders. Now I'm worried. I have perfect credit and good affordability, easily enough to afford the car.

So... has anybody been taking out PCP finance lately? Any issues?

[journeymanpro]

How does the dealer know said person has 'good credit'?

[mike74]

If it's all so worrisome for you why not just pay cash for a car you can afford?

[The Rotrex Kid]

journeymanpro said:

How does the dealer know said person has 'good credit'?

They don’t. They’re just being anecdotal, can’t see why you’d spin that yarn to a prospective customer though. Odd

[R2x]

Progject said:

Been aiming to buy a car using PCP finance but I'm just waiting to complete on my new house first, as I can't risk getting any hard credit searches on my record just incase the mortgage lender decide to do a last minute check.

Anyway, having spoken to guys like Magnitude Finance and etc, I was told this is never a problem, so I'm not worried about having just taken out a mortgage.

Now I'm worried about something a dealer told me today as I'm eying up the car I want - the salesmen told me that currently lenders are choosing not to lend to a lot of customers right now. He told me that he had a customer who had "good credit" was rejected by two different lenders. Now I'm worried. I have perfect credit and good affordability, easily enough to afford the car.

So... has anybody been taking out PCP finance lately? Any issues?

Dealers say a lot of things. Ultimately, the only person who will ever know the full story is the underwriter at the finance company.

The finance company will always look at whether or not you can afford the car, as well as your past credit usage.

A perfect credit rating is worthless if for example, you earn 3k a month, spend 1200 on a mortgage, 1k on other bills/outgoings, £500 servicing existing debts and want to take out PCP which will cost £400 a month (ie your outgoings breach your income)

As long as you aren’t gonna bust your monthly budget with your new car finance, and you have a decent background when it comes to paying your previous PCP/lease, I would guess you’d be fine. The dealer will never know the true circumstances of a customers credit acceptance or decline so best to ignore what they say in this regard.

[bristolracer]

My Wife has just gone for PCP on a new car,
The salesman pushed the button and it was immediately accepted, he said he doubted anybody at Toyota even looked at the proposal. The Matrix said yes and that was that.

[Sheepshanks]

Is all this new? I’ve used PCP a couple of times just to get the deposit contribution. I never use credit apart from credit cards and they’re settled every month, don’t have a mortgage and I get the minimum amount to trigger NI. Nothing was raised as an issue for either PCP.

[journeymanpro]

The Rotrex Kid said:

They don’t. They’re just being anecdotal, can’t see why you’d spin that yarn to a prospective customer though. Odd

Exactly

[Progject]

To the dude with the strange animosity towards PCP... I can very easily afford the monthly payments on this car. Especially with my combined income with my fiance.

I think in hindsight, the dealer was trying to justify why he wouldn't let me hold the car for a week while I wait for my house purchase to complete - his reasoning was that he could hold the car only for me to fail the credit check, so the dealer would be out of pocket by taking the car off their forecourt for a week. He probably threw in that example to back it up. That guy may have just said he has good credit but didn't, etc.

Just wanted some anecdotal stories from anybody that has very recently been accepted or rejected in these times.

[The Rotrex Kid]

Anecdotal from me. We work with 4 different finance companies, I haven’t had a customer in the last 6 months who’s applied and not been accepted by one of them. Nobody has been flat declined that I recall.

[HTP99]

Had a guy declined yesterday on PCP, he already has an agreement with the same finance company which will be settled when the new agreement goes live, the new agreement is £40 less per month too.

I'm hoping it's a mistake, and maybe something that has been missed, will find out tomorrow when the area guy is back in.

[Progject]

Thanks for all the input guys. Really really want this car so I'm having to hope nobody buys it this week and then that extra weird thing about PCP the guy told me!

[Anonymous-poster]

What % apr have you negotiated?

[R2x]

HTP99 said:

Had a guy declined yesterday on PCP, he already has an agreement with the same finance company which will be settled when the new agreement goes live, the new agreement is £40 less per month too.

I'm hoping it's a mistake, and maybe something that has been missed, will find out tomorrow when the area guy is back in.

I had something similar when applying for my 2nd PCP (in 2013). Alphera only approved the finance for the new PCP agreement (after an initial decline) on the basis that my existing car which was also Alphera funded would be VT’d and collected before they authorised the release of the new car. Took some hassle to get sorted. Essentially, they would allow me only one active agreement at any given time.

[Progject]

Anonymous-poster said:

What % apr have you negotiated?

6.4%. The car is a late 2017 BMW 440i. I'll be talking to Magnitude Finance who are suggesting they can do better but won't know until they can run an actual hard check, which I can't do yet.

[dmsims]

Progject said:

6.4%.

A fool and their money are easily parted

[Anonymous-poster]

dmsims said:

Progject said:

6.4%.

A fool and their money are easily parted

A lot better than BMWs usual pre owned rate but I would be looking at a 5 year loan and having the car bought but don’t know the figures to compare.

[Progject]

I've gotten quotes from quite a few brokers now and none of them have been able to quote me over 6.4%. It must just be how it is right now.

[anonymous-user]

6.4% may be the best pcp rate you can find but it's still very poor value compared to a personal loan.

[Weso]

mike74 said:

If it's all so worrisome for you why not just pay cash for a car you can afford?

There's always one idiot isn't there?
So boring.