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Anyone been refused credit with Volkswagen Bank?

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  • 09-12-2011 9:38pm
    #1
    hsebldMO
    Registered Users Posts: 9 ✭


    Hi,

    We (my wife & I) recently applied for & were refused car finance (5.9% APR on 09 Passat with trade-in) with Volkswagen Bank. Joint & singular applications, account statements and copies of ICB reports (flawless) sent in; all applications refused. We have never missed previous car loan repayments, credit card or mortgage repayments, and are both in well paid full time employment.

    I, myself applied for & was approved straight away by AIB (my bank) for the full amount. We ended up going with this as we were told basically there was no chance of getting the finance with VW Bank, no matter what we did.

    We wrote to VW bank to get the reason why we were refused; they first sent us a generic letter saying we hadn't met the criteria & that we could apply for our ICB reports etc, on looking for more information they just keep saying it's their policy not to state the reason for a refusal.

    My question really is has anyone else been refused car finance with Volkswagen Bank that they genuinely felt was an unfair decision. (and preferably were approved by another bank straight away). I am not really looking to get into a speculative discussion about the details of my case- why we might have been refused etc; I'm just curious if this is a common occurence with this institution. The cynic in me thinks its a low rate with a high refusal rate-maybe I'll be proved wrong by others stories!!

    Also, if anyone has had dealings with this institution in regards to getting a reason for loan refusal it would be great to hear from you.

    Thanks


Comments

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    #2
    -Chris-
    Closed Accounts Posts: 12,035 ✭✭✭✭-Chris-


    I always understood that the point of VW Bank was to support car sales figures rather than to make "banking" profits in its own right.
    Obviously they can't approve anyone, but their reason for being is to move metal.

    Was there anything that could have caused an issue - a large-ish guaranteed buyback or a balloon payment mid-term?


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    #3
    cookie1977
    Registered Users Posts: 6,794 ✭✭✭cookie1977


    Their metrics for deciding your suitability could be anything. Their idea of your job security could even be it. You'll probably never find out unfortunately. No doubt their offer was a HP agreement so at least with AIB you own the asset outright immediately.


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    #4
    Davy
    Moderators, Category Moderators, Business & Finance Moderators, Technology & Internet Moderators Posts: 19,340 CMod ✭✭✭✭Davy


    All companies/lenders do this, and never tell you why, I wouldn't take it to heart to much. The amount of people even refused for bill phones is a lot more than you would think, often because of something simple.

    I have never used the VW bank but did read something lately that they are lending a lot of money out, cant remember exact figures though


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    #5
    -Chris-
    Closed Accounts Posts: 12,035 ✭✭✭✭-Chris-


    >€100m apparently
    http://corkindependent.com/stories/item/5620/2011-47/VW-bank-beats-car-credit-squeeze


    Separately, I wonder if, at this stage of the year, they've hit all their lending targets and it's just a bad time of the year to be looking for money from them?


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    #6
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    I take it from your post that you intended to buy a 09 or was it to trade in a 09. The only thing I can think of if it was to buy an 09, was maybe they only finance new cars.


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    #7
    hsebldMO
    Registered Users Posts: 9 ✭hsebldMO


    Yes I too understood they were cheap credit just to shift metal. There were no complications - a straightforward HP agreement with 2 document fees. We were trading in an 03 Focus against the 09 Passat plus a small cash deposit.

    According to a friend who works in one of main banks, the banks overseen by Financial Regulator (I use overseen with tongue firmly planted in cheek!) have to give you a reason for refusal of credit or you have a case to take to the Ombudsman. Not sure how correct this is - I have already contacted the National Consumer Agency to see what our rights are. Of course VW bank are regulated by the German Financial Regulator so unsure where that leaves that..

    @Davy, I know but it's hard not to take it to heart when its costing me an extra 1.5K in interest!

    @ResearchWill, they finance both new & used cars; the interest rate for the newer cars is 4.9% APR AFAIK. Also there is a large deposit I think for the new car finance.

    They probably had reached lending targets as Chris said.. Who buys a new(er) car in November anyway?!!


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