BMW Finance Decline

[Derek 911]

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?

[Derek 911]

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.

[Derek 911]

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?

[Derek 911]

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]

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.

[Derek 911]

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]

Yeah I agree with all of that from finance houses fair enough and that’s all well and good but if it does destroy your chances of applications with finance houses and you were categorically told to do it by the same finance company knocking you back now in order to facilitate the purchase of yet another car from them and the car salesmen tell customers to do it aswell then surely that’s some kind of mis-selling you may have a case to get the black mark removed from your score?

[Derek 911]

1 to Bmw but I’ve checked equifax and Alphera finance have recorded 2 in same day so that’s bmw.

Clydesdale didn’t do hard search cos I’m existing customer. They confirmed that.

[Derek 911]

Dunno bout Bm cos they don’t give you much info why they decline but Clydesdale said my affordability was good just purely on the credit score a no is what they said. That was on a lessser price car too secondhand similar value on the current loan I have with them so was basically a contra deal between them and a Bmw garage would been little money changing hands and similar monthly payments to what I have right now.

For question on lease or pcp it was pcp minimum deposit going in.

[Derek 911]

I come on here looking for advice and I get called a tosser by tannhauser haha just kidding.

And ok so if I punt Porsche I reckon there’s about 3k in it any advice on buying a old runner never really done it I like Bmw obviously any suggestions or what to look for and do bear in mind I dont wanna spend much on it cos I’ll prob just trade it on the M3 comp pack anyway when time comes.

[Derek 911]

Yeah I thought that too but given the pcp on a brand new M3 is more or less just a 3 year depreciation lease hand it back and get another I didn’t want to drop 10k in the front end and get nothing back.

Dealer were doing 6k deposit and I was doing 1500.

[Derek 911]

tannhauser said:

Derek 911 said:

I come on here looking for advice and I get called a tosser by tannhauser haha just kidding.

Not directed at you :-) and I have friends who have done the same - but it's ridiculous how things have got with finance - it's driven up car prices, devalued brands and exclusivity and enabled the unwashed to access cars they should never have been able to...

I kinda agree anyway but I don’t think its anyone fault other than the finance companies and car companies PCP since it gained popularity is what drove up the price of cars and the buy something you can’t afford trend. I personally would rather not do it but let’s take a little example from my car buying past I always stuck around 20k, always Bmw always HP I had nice stuff like 2-3 year old alpina d3 e92 & e46 330 clubsport decent cars decent money decent deal and bout 450-550 a month on the straight HP with 10% deposits.

Pcp rears it’s head and it’s f30 330d with all M performance kit 48k list price for 580 a month what you gonna do?

Same car today my old car went on Bmw approved used for 20k so to whoever bought it same monthly payment as me probably on the HP so it’s the finance products that are keeping prices high on retail of the cars but letting everyone get into them and charging double the cash on the price of the damn thing with the finance companies cos they all rub their hands together.

[Derek 911]

coljoh148 said:

For the sake of a couple months just rent something.

What would I rent what websites are best for this?
I’ve hired cars for like a week and stuff in the past but not months any advice?

[Derek 911]

One of the boys on the thread mentioned the 39k to another finance house was potentially something that might have put the Bmw lending off even thought it was expressly explained to them from the retailing garage

[Derek 911]

First garage and application it was explained to them in emails by the offer of a private Porsche specialist confirming he was chomping at the bit to buy it sent them the emails.

Second garage they were giving me a decent trade in price so it was gonna be cleared before I drove off the forecourt.

[Derek 911]

100% could sell the Porsche tomorrow and get a decent price

[Derek 911]

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?

[Derek 911]

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

[Derek 911]

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.

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?

[Derek 911]

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.

I paid 48k for the 330d trade value today is probably 15kish so depreciation of 32-33k in 3 years PCP was 580 a month so as others have said the finance company have taken the loss with me on this car which is why PCP is a good deal on new cars but potentially also a factor in why I am being refused car finance now.