Lack Of Funds Means Tighter Lending On Cars

Saturday, 18. October 2008

Fuel is coming down, the sun is shining and the banks are lending again. Well 2 out of three can’t be bad! I think the email from the Government to the banks must have got lost in cyberspace somewhere or maybe they sent it in the post without a large letter stamp attached. Either way I am still waiting, as are most in the finance industry, for the glimmer of light that suggests that Chancellor Brown oops I mean Darling did the right thing for us common people or whether things will continue to deteriorate. The annoying thing is that we don’t have a shortage of potential customers as people start to see the benefits of leasing but underwriting is becoming a nightmare and that is where the bottleneck is occurring. So if you have a change of car coming up make sure that your credit is looking good. Make sure that you don’t miss any payments especially mortgage and loan payments. Try to ensure that you don’t have any returned items on your bank statements. Better to negotiate with anyone you owe money to and spread the payments rather than raise cheques that you know won’t be honoured. Also make sure that you are on the voters role. Most funders are now looking for 5 years address history so make sure that you have proofs of address going back 5 years. This way you give yourself the best opportunity to be offered finance. By Graham Hill