Financing oddness

[Bendolfc]

Originally Posted by ITSv40

I have had a credit card for 40 years and pay off the balance every month. In other words I should be a money lenders wet dream - if I wanted to borrow money.

Not really, they much prefair someone who will miss the odd payment here and there. Lending to someone that doesn't incur any charges isn't as profitable.

[happyfeet]

Hi All,

Thanks for the replies. I have checked my score on experian and its 980 / 1000... So its pretty damn good. My wifes is classed as "Good".

The part im more concerned about is the whole decline because we tried putting it through under my wifes name first.
The guy at santander even told the dealer that all would be fine had we put myself forward in the first place.

I have got in touch with santander to find out what happened and what ramifications this will have in the future, so im awaiting their reply.

The volvo dealer has his regional manager coming in today and apprantly he is their link to santander so he is going to find out what has happened.

Sadly though, i have cancelled the order on my xc90. The lease deal didnt suit me, and to be honest, it feels to me like someone is either taking the **** or is messing me around. I love the xc90 and am totally gutted but im not prepared to be messed around. It is a bit of "cutting my nose off to spite my face" but im just so angry about the whole thing.

[Bendolfc]

One thing to note is that score is unimportant, that is just something the credit reference agencies put on to package it nicely for consumers, the likes of Santander etc will have their own algorithems that look at the data within to check you make your payments on time, you don't a high %age utilization of credit etc.

My Wife has a good score, but it isn't worth much as she doesn't do a lot with credit so there isn't much meat for the lenders to get their teeth into.

[DaveNP]

Not having all of Happyfeet's financial details and not having Santander's loan criteria I can't comment on that but..

Just 10 years ago we were all slagging off the bankers for the financial crash and subsequent recession caused by toxic debt where banks lent money to people who couldn't repay them, each individual case was probably not too drastic but added together they caused the mayhem we should all be able to remember. I seem to recall also reading (possibly in the forum) where someone with more financial acumen than me pointed out that the current rash of PCP type schemes for cars had the potential to be the next toxic debt crisis. Again individually one loan for one car shouldn't bring down a bank, but with so many people now using PCP type schemes the banks are effectively loaning large amounts to finance the car companies that build the cars then trusting that the driver will repay them, hopefully enough of them will because the cars that the loan is effectively secured against will be worth a lot less than the starting price. So Santander seem to have gotten a bit wary on car financing and declined Mrs H, and then caught the ruse of using someone else's creditworthiness for what was transparently the same deal. Should we feel sorry for Mr and Mrs H, or feel glad that the banks are being cautious with 'their' (our) money? I guess it depends where you're looking from.

[happyfeet]

Originally Posted by DaveNP

So Santander seem to have gotten a bit wary on car financing and declined Mrs H, and then caught the ruse of using someone else's creditworthiness for what was transparently the same deal. Should we feel sorry for Mr and Mrs H, or feel glad that the banks are being cautious with 'their' (our) money? I guess it depends where you're looking from.

Is it really a "ruse"? Using my own credit isnt really a ruse, considering,you know, we are married. Money goes in the household pot, and gets spent on the things we all use.

[Considered1]

One thing I forgot to mention is its worth asking the silly banks if you can have the money over a longer term as they are more likely to say yes as your "affordability" for each repayment is better as its slightly lower.

Maybe they also like it 'cos they get more interest as its a longer term.

I remember getting my first car loan at 21 as I need a more reliable car to get to my new job when I was single, had no habits and still lived at home, hsbc wouldnt lend me the money over 2 years but would over 4!, apparently their system always assumed you were married with 2 kids and a mortgage.

Dont thing much has changed , apart from some folk who've never used credit and possibly got rich in the property boom years or when Final salary pensions were around getting a bit snooty at other folk trying to earn a living and having a decent car to get to work and back reliably!

[I-S]

As Sasha said, credit ratings are as much about whether you will make money for the lender as whether you will not lose them money.

The case of ITSv40 is indeed nothing to do with whether you are creditworthy, but rather whether or not they know whether you are creditworthy or not. If they have no information (as is the case, because you've never borrowed a significant sum of money) then they must assume the worst (even though you've not borrowed because you've kept your financial affairs in tight order).

Remember that a credit check does not show how much money you have stored away - that would be a breach of data protection. You could have every penny needed to pay back a loan sat in a bank account and other financial institutions would not be able to see that.

There are ways to play the system. A strong credit record can be built using 0% financing. I took a couple of small 0% deals (a sofa and a mattress - there was no "discount for cash") and these improved my credit no end. Weirdly, another strong positive on a credit record is to have large lines of credit available to you (eg high limit credit cards) but not actually USE the credit. This demonstrates that you're not tempted by the cash and that you make sound financial decisions. It leads to the situation where I am that I could easily buy a new car using my credit cards (but paying for it would not be so easy).

It also leads to rather extreme lending, even in this day and age of supposed lending prudence. I have actually had an outstanding credit card balance for more than a year now - and yet it hasn't cost me a penny in interest as the card offered 0% interest on purchases for over 2 years (and I've used the line of credit to cover a lot of costs associated with moving into our new home and some improvements, and now I'm reducing the debt as quickly as possible and should 0 it out with about 6 months to spare). The more you do this sort of thing, the more they are keen to lend you.

As for the OP - it's remarkable that they declined you with a 980 experian score. However, there are some real peculiarities in the system. When we moved house our mortgage provider (who I'd been with for almost 9 years by then) grilled me for 20 minutes over how I was going to maintain my income to pay off this mortgage within 25 years - given that I was 33 at the time it seemed odd that they would think I wouldn't still be working by age 58!

[DaveNP]

Originally Posted by happyfeet

Is it really a "ruse"? Using my own credit isnt really a ruse, considering,you know, we are married. Money goes in the household pot, and gets spent on the things we all use.

Sorry 'ruse' is a loaded word and from our side of the situation knowing your circumstances seems unfair and inappropriate, from outside of the situation it could well look a different story. They're using some computer scoring system that doesn't know you personally, they don't know whether you and Mrs H keep all your money in one pot or have strictly his and hers accounts. So then what's to say that after she was declined you felt sorry for her and despite not keeping your money together agreed to put it in your name and she could pay you back? A year down the line you fall out and stop paying 'cos it's not your car. Now that's not your case, but I know at least one of my extended family that would do such a thing, trouble is the computer doesn't know either of you or your backgrounds. I can remember back in the day when if you wanted a loan you had to go in personally to see the actual bank manager, he would check your account then give you a grilling as to why you wanted the money and how you would repay it, he could then use his discretion to loan or not, but there were a lot less people borrowing money back then.

[NigelDay]

Originally Posted by happyfeet

The volvo dealer has his regional manager coming in today and apprantly he is their link to santander so he is going to find out what has happened.

Sadly though, i have cancelled the order on my xc90. The lease deal didnt suit me, and to be honest, it feels to me like someone is either taking the **** or is messing me around. I love the xc90 and am totally gutted but im not prepared to be messed around. It is a bit of "cutting my nose off to spite my face" but im just so angry about the whole thing.

The other option would have been to take a print out of your Experian Credit Report, slam it on the Dealer Principal's desk and tell him, "sort it and I'll order an XC90 -- it's your choice".

[Craigtange]

Originally Posted by happyfeet

Hi all,

Im currently in a strange situation in regards to getting my finance sorted for buying a new xc90, ill start from the beginning... (apologies for the incoming wall of text)

Went to a local dealer, spec'd the car i wanted and got a PCP plan which seemed good. The wife did some digging and got a better deal from a dealer a few hours away Buy here pay here, we decided to go for that deal.

Before going through the order process we pushed for the financing check to make sure we wasnt wasting anyones time, my wife has historically had better credit than me, so we tried it through her name. that got declined so we tried it using my name. I got accepted.

Roll on a couple of weeks later to today. I get a call from the dealer saying santander have pulled the financing offer, stating that because we tried under my wifes name first, it was unethical for them to then accept me as it would be financing by association.
I dont really understand WTF is going on here, we are married, we pay for things together! We have a joint mortgage with santander so they bloody know we are married. My name was on the order form as the registered keeper. Its a bloody family car, going to be used by a family.

What i also dont understand is, what if i bought a car from the forecourt instead of getting a factory build, would they then have called me up and said i have to give the car back? The dealer said he didnt know as he hadnt seen that happen.

The dealer has now put together a leasing plan for me which (as it includes road tax and servicing) is very competitive compared to the PCP deal on the exact same spec car, so we are thinking about going for it, but i just want to try and get some idea on what the hell has gone on here, whether santander ****ed up initially, or (and i do doubt this) whether my dealer is trying to screw me over.
Also, because of santander doing this, if i went to another dealer - even another manufacturer, would i get declined for this exact reason. It just seems a little odd to me.

Again, sorry for the long post / rant, just wondering if anyone else has had anything like this happen?

Can anybody recently financed their new Macan purchase or are in the process of financing make a recommendation of finance providers? I'm yet to meet with Porsche FS but don't expect them to give me the best rate. Can you please also let me know what interest rate you received?