The banking world has changed as we all know. Before, banks would have a lending attitude that if you had loans elsewhere and you are making all the payments then you will probably be good for more credit.
We all know what happened next, so what has changed in the world of car finance?
What I am just about to say are the experiences that OSV have had over the last year in gaining car and van finance for customers, if it be a car lease, van lease or private car finance like hire purchase or PCP (Private Contract Purchase)
So the basics are:
1 Be on the electoral role
2 Be over 18
3 Have been up to date with all existing credit agreements
4 Not up to your limit on credit cards and overdraft facilities
5 No defaults, CCJ`s, IVA`s etc
6 Have a fixed address!
7 Have a regular income
Now here are the changes for car finance
1 Some car finance houses look very carefully at the value of the vehicle later down the line of the agreement, if they feel the car owner could be in a negative equity situation in a years time then they will ask for a larger deposit. There are some vehicles, because of the make or style, that will require significant deposits, therefore you could be declined, not because of your credit, but because of the car you are wanting to buy.
2 Previously as I said earlier, as long as you were good on your existing credit then you are good for more, not the case any more. Banks may ask you to provide bank statements and prove you can comfortably make the payments, particularly if you have a few credit cards where you are either making
minimum payments or significant balance to credit limit.
3 Length of the agreement is also considered, dependent on the customer and the car.
I am pleased to say that we get over 90% of our customers approved on finance, it is important that you help your car specialists by giving all the information they may need, there are plenty of banks to choose from with very different underwriting requirements, and even in todays world there is a bank for everyone.
If you want to discuss your likelihood of car finance approval then contact us in confidence. A strong “no no” is to randomly propose yourself to multiple finance houses, so talk to an independent car finance specialist first.
Do you feel that the banks underwriting is now better than before, or are they invading your finances too far?
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