Rejected for finance

bigbadcredit · Derestricted Danger Joined: 18 Aug 2017 Karma :

I'm in the market for a new bike and was considering two models.

Went to look at the first one. Dealer does an application for blackhorse finance. Approved. So I take it out for a test ride but I don't like it so decide not to go ahead.

Off I go to look at the next bike. This one is a 1000 quid less. I've already rode this and want to buy it. Dealer does an application for blackhorse finance. Rejected.

How the flipping heck can the same finance company approve a 4k loan one day and then reject a 3k loan the next?

Oh and ignore the username. I don't have any bad credit or outstanding loans or anything like that.

ThatDippyTwat · World Chat Champion Joined: 07 Aug 2016 Karma :

kgm · World Chat Champion Joined: 04 Jun 2015 Karma :

Don't let the dealer do a finance application until you've decided you want to buy the bike. Each application for credit shows up on your credit report and if there's a few in there then it puts lenders off (it can make it look like you're desperate for cash, applying for lots of loans in a short period).

Try a different lender or give them a phone to discuss it. It's often worth looking at personal loans in any case as you will often get a better rate (assuming your credit history is good) and it's not tied to the bike if you decide you want to sell mid term or whatever. Unless it's a PCP deal you are looking at or a particularly low rate offered through the dealer of course

struan80 · World Chat Champion Joined: 04 Nov 2014 Karma :

Thankfully I can't get credit or I'd be trading my R6 in for a Honda Vulva for sure.

https://i794.photobucket.com/albums/yy224/struan80/honda-nm4vultus-motorycle-frontoffset-700x467-c_zpsbiqn9uzq.jpg

J4mes · World Chat Champion Joined: 18 Mar 2011 Karma :

Ste · Not Work Safe Joined: 01 Sep 2002 Karma :

kgm · World Chat Champion Joined: 04 Jun 2015 Karma :

bigbadcredit · Derestricted Danger Joined: 18 Aug 2017 Karma :

Thanks for the feedback. I knew that credit checks would show up on the history but the I didn't think it would have that drastic an impact. Sod it anyway.

I only wanted the credit so that I could avoid telling the girlfriend I'm pulling 3k from the savings account. But I guess I'll have that conversation.

Ste · Not Work Safe Joined: 01 Sep 2002 Karma :

From the salesman's point of view, it's a good way to limit your options so that your only choice is to buy from them which means he gets his commision on the sale of the bike and on the finance.

On that basis I wouldn't simply because he's fucked you over. You need to find a different bike to stop him getting commision.

A bank loan is another option but you're going to need to be cautious with making credit applications until you're 100% sure what you want.

- · Super Spammer Joined: 22 Oct 2013 Karma :

t121anf · World Chat Champion Joined: 23 Feb 2007 Karma :

Ring Blackhorse direct and ask them to finance the bike using the quote your have for £4K but ask for it to be reduced to £3k.

Can’t see this being a problem.

waffles · World Chat Champion Joined: 04 Oct 2009 Karma :

Or look at a bank loan instead, you may get a more favourable interest rate than a finance company would offer.
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Theory test - 19/8/09, CBT - 11/10/09, MOD 1 - 16/8/10, MOD 2 - 27/10/10
Past rides Yamaha XT125X, Triumph TT600, Honda XR250
Current rides Suzuki GSXR 600, Honda MSX125

u33db · Renault 5 Driver Joined: 26 Sep 2008 Karma :

Or just save up and buy it outright instead of renting it off a finance company.

bigbadcredit · Derestricted Danger Joined: 18 Aug 2017 Karma :

[quote="u33db"]Or just save up and buy it outright instead of renting it off a finance company.[/quote]

Trouble is I commute year round on the bike and my new job requires taking a stretch of motorway. On my little gn125 it's a ball ache.

andym · World Chat Champion Joined: 16 Nov 2010 Karma :

bigbadcredit · Derestricted Danger Joined: 18 Aug 2017 Karma :

[quote="waffles"]Or look at a bank loan instead, you may get a more favourable interest rate than a finance company would offer.[/quote]

Better rate alright but only when you borrow over 7500. But maybe I'll check it out again, if there's no fees for doing so I could borrow the 7500 and instantly pay back the 4500 I don't need.

t121anf · World Chat Champion Joined: 23 Feb 2007 Karma :

Credit card it.
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

iooi · Super Spammer Joined: 14 Jan 2007 Karma :

Tomzo47 · Brolly Dolly Joined: 29 Jul 2011 Karma :

If its unsecured you could always take the 4k loan against the 3k bike, instantly pay £1k off it. Take a look at bank loans instead of Black Horse too, I got one for 3% through Sainsburys, Black Horse was 14% Shocked

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Ybr 125 > Bandit 650SA > GSXR 600 > Triumph Sprint St1050 > CB1300 > Z1000SX + FJ1200 (written off) > VFR750 >FJ1200

andys675 · World Chat Champion Joined: 08 Feb 2007 Karma :

admiral, eager to lend as new in the market
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Monkeywrenche... · Nearly there... Joined: 27 Mar 2015 Karma :

Wafer_Thin_Ham · Super Spammer Joined: 18 Nov 2005 Karma :

Generally speaking applying for a loan knocks your score so if you were borderline, the first £4k could have knocked your score below what was needed for the £3k loan.

Also searching for a loan, getting approved but then not taking it can also (strangely) adversely affect your credit score.

Wait six months. Test ride some bikes THEN do finance on the one you want.

Personally I would expect a personal loan to be cheaper, but hey fill your boots.
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