I got a bank loan easier than a PCP deal...

Hi,

I was trying to apply for PCP finance in February with Volkswagen Bank and got declined. I then applied for a car loan off AIB and got accept for €6k more! Do you think this would give me a footing to apply for PCP next year with Volkswagen?

They seem very strict!

Kevin

Kevin Hunt (Dublin)

Jul 2016 Filed under: finance

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Expert answer

Hi Kevin,

The acceptance by AIB might well give you a little more leverage with Volkswagen next time around, not least because it will be another tick on your credit rating. Oddly, it’s usually the other way around – high street banks tend to be harder to get a loan from than car company banks, but acceptance criteria vary hugely across the different financial institutions so you never know until someone puts the details into the computer and someone says yes or no.

Having said all that, you might actually be better off with the bank loan than with the PCP. Although the monthly repayments might be higher, you do have the advantage of owning the car outright from day one, and not having to worry about condition and upkeep.

Neil Briscoe - Complete Car Advisor
@neilmbriscoe