PCP approval

Wildly Boaring · 21-11-2018 01:34PM #1

Trading in and going PCP.

VW Bank.
Name, address, employer, profession.

10 mins later .... Approved!!!

Ridiculous.

There will be consequences for easy money in the next downturn.
At least an idiot can only get in over their head on a car not a house with this lark.

Any regulation?

I'm happy with the deal, could pay now cash but hope to need my savings elsewhere in next couple years.

NIMAN · 21-11-2018 01:39PM

Isn't VW Bank just VW themselves?

VW must be happy enough taking the risk on you so.

btkm8unsl0w5r4 · 21-11-2018 01:42PM

They have your deposit and they have a lean on the car. If you default they have any repayments made also. There is very little risk in it for them. Also remember how little that car costs VW in comparison to what your paying.

nim1bdeh38l2cw · 21-11-2018 01:42PM

No bank statements? No documents required?

Wildly Boaring · 21-11-2018 01:45PM

Lyle Straight Universe wrote: »

No bank statements? No documents required?

Nope....
Name
DOB
Occupation
Employer
Years with employer

And I'm only 6 months with them......

Wildly Boaring · 21-11-2018 01:47PM

Ivan Moldy Sheet wrote: »

They have your deposit and they have a lean on the car. If you default they have any repayments made also. There is very little risk in it for them. Also remember how little that car costs VW in comparison to what your paying.

Less worried about VW and more the idiots who'll buy a 50 or 60k car cus Paddy next door did.

Doubt VW are a charity when they don't cough up.

I don't know what a tracker mortgage is....

easyvision · 21-11-2018 01:55PM

I tried to get approval with VW and turned me down twice and been 2 years with the company. Also no mortgage or rent, living at home! approved with AIB in 2 min! Put me ever going/trying with VW again even though I want to replace my car every 2/3 years

helimachoptor · 21-11-2018 02:39PM

Bought a new 5008 (will collect in Jan) on HP.

Similar experience, pretty minimal details to get "approved" but putting down deposit which is about 45% of car, so tbh little risk for BOI who provide the finance.

yosser hughes · 21-11-2018 02:41PM

Wildly Boaring wrote: »

Nope....
Name
DOB
Occupation
Employer
Years with employer

And I'm only 6 months with them......

No salary details? What deposit did you put down?

Wildly Boaring · 21-11-2018 03:36PM

yosser hughes wrote: »

No salary details? What deposit did you put down?

Nope
25% ish

Wildly Boaring · 21-11-2018 03:40PM

OSI wrote: »

That doesn't mean it's the same for everyone that walks through the door. They were obviously able to glean enough information about you from shared data that the system decided you met all the criteria. In contrast I had little prior finance agreements when I went for my first PCP and it took 2 weeks to get approved, requiring a letter from employer and multiple months bank statements.

Strange. I dunno.
Never taken out PCP or car loans etc.

What data would be shared that would give them the green light?

btkm8unsl0w5r4 · 21-11-2018 03:52PM

They just check your credit history and make sure you are not insolvent.

yosser hughes · 21-11-2018 06:29PM

Wildly Boaring wrote: »

Nope
25% ish

Well I suppose that's a hefty enough deposit; that will cover them for default and they can take back the asset. So the risk profile is greatly diminished.
What car did you get anyway? Golf ?

Wildly Boaring · 21-11-2018 06:45PM

Ateca

MarkN · 21-11-2018 08:01PM

It’s not just VW, if you have a clear record and a stress test deems you as an ability to pay they’ll lend money. Got approved for €50,000 on a car during the summer with a random garage provided by BOI within half an hour, no proof of anything required.

NIMAN · 21-11-2018 09:57PM

Haven't some financial journos said that PCP is potentially the next big bust in the economy?

bazz26 · 21-11-2018 10:25PM

PCP doesn't fall under the standard money lending regulations afaik. They just run a credit background check on applicants and away you go.

ddarcy · 21-11-2018 10:45PM

I got a car in August with VW bank. I was using a 20% deposit. I was approved, but I still had to give them bank statements and a letter from my employer. I’m also on an extremely good salary too. It was the same with Ford as well when I bought a car through them years ago. I’d say you don’t have the car yet and you’ll be asked for all of this later on before they give it to you.

Wildly Boaring · 21-11-2018 10:49PM

ddarcy wrote: »

I got a car in August with VW bank. I was using a 20% deposit. I was approved, but I still had to give them bank statements and a letter from my employer. I’m also on an extremely good salary too. It was the same with Ford as well when I bought a car through them years ago. I’d say you don’t have the car yet and you’ll be asked for all of this later on before they give it to you.

Nah. Was talking to them. That's it.

bazz26 · 21-11-2018 10:54PM

I'd say unless they discover your hiding your a chronic gambler with huge debts then once you pass the initial credit check your pretty much approved. The request for documentation is probably just proper confirmation and paper trail of that.

Atlantic Dawn · 21-11-2018 11:29PM

They can't really lose once the deposit is big enough, they simply reposes the car if you can't pay and will still be up.

21-11-2018 11:43PM

NIMAN wrote: »

Haven't some financial journos said that PCP is potentially the next big bust in the economy?

Vary lazy clueless ones maybe. If they had any clue at all they would see that there is almost no risk for the “lender” and the risk for the purchaser is limited to a worst case scenario of the car being taken off them. They aren’t going to be stuck in massive debt like defaulting in a mortgage, it’s far from ideal but still not that bad.

ShadowHearth · 22-11-2018 12:03AM

"Those bastards did not approved my pcp finance, this country going to ****!!!"

"Those bastards did approve my pcp finance, this country going to ****!!!"

You cant make them all happy....

There is such thing as credit rating/score. Its not as brutal as in US, but it clearly being used here. If they have your name, they can check it.

I went in to Seat and gave only my name, bank details, job description and my salary. After 15min I was approved and needed only to bring passport and prove of address.
Now I know my credit history is damn good. I took out few loans ranging from 1k to 5k over the years and payed them all off with no late payments. Last loan of 3.5k I payed out early. So they clearly can see I am responsible adult. And thing is am not making big money at all!
There were people with really good jobs turned down or asked for more documents. So they are doing their homework more where it needs to be.

Again, its a shame that dickheads who look good on paper and still can't afford those new cars will burn and then blame others instead of themselves, because they are too fecking stupid to manage their budgets. There are not enough crayons and time in this world to explain those people what they did wrong and its their fault.

Lantus · 22-11-2018 10:11AM

Cars are essential to most people. Our families, jobs and life depend on them. Most of us have a good sense of our budget as this isn't our first car and are not looking to endanger our entire way of life on one rash purchase.

What are the figures on pcp defaults? I'd love to see them but I doubt they vary from any other loan package. Also cars can just be resold into the market so losses are very low to the lender. In that sense there really isn't a bubble but new car sales would be expected to fall now the initial glut of pcp deals have run there course.

Wildly Boaring · 22-11-2018 02:55PM

Houses are essential.

Don't agree that it's a bubble.

Think it should be a bit harder to save the dopes from themselves.

martyoo · 22-11-2018 02:58PM

Can they generate an ICB report remote that quickly? Thought it took longer than 10 minutes. I'm assuming here that they check that!

TheShow · 22-11-2018 03:05PM

martyoo wrote: »

Can they generate an ICB report remote that quickly? Thought it took longer than 10 minutes. I'm assuming here that they check that!

Input name, address & DOB, then press a button. and just by magic they get an ICB report. it takes less than 5 mins.

If its clean with a decent history expect approval.
If you've no credit history, might need to provide bank statements.
If bad credit history, expect decline.

PCP approval

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