If You Take Your Time You Could Lose The Deal!

Tuesday, 11. May 2010

There are two reasons why you should not procrastinate when you have found a great deal on a car that is in stock and for which you’ve been approved for finance. Firstly, whilst lenders don’t like to provide information regarding fraud, as it may alert the crooks out there as to how the latest frauds are working, fraud has increased, according to some insiders, at an alarming rate. As a result we are seeing some of the knee jerk reactions that hit the mortgage market when things started to go wrong for them. You may recall the procedure whereby a mortgage would be approved then when the applicant had finalised a purchase and wanted to draw down the funds, the lender would revisit the application and in some cases withdraw the offer. This is now happening with motor finance. It is getting very tough to get deals underwritten in the first place but if a client is offered finance and takes time to take up the offer there is a very good chance that the application will be re-visited and possibly declined. This may be because the lender has become suspicious but it may also be because he has run short of money to lend which is still a big problem. On the other hand we have seen several deals suddenly go after the manufacturer has hit his sales target. The Volvo XC90 deal that we had was suddenly pulled, increasing the monthly rate by £100 + VAT overnight. Other deals have gone the same way with either rates increasing dramatically or delivery suddenly stretching out to 12 – 14 weeks. So if you are offered finance on a car you can get quickly you should act immediately, just a couple of days will make all the difference and could not only lose the car but also the finance approval. By Graham Hill