Audi owners in here!

Jez said:
Haha, i will just absolutely not be corrected by Maccy :p

2.99% seems alright. At least this is a lot better than the PCP/HP deals mentioned a page back. Just get on convincing your wife. The paperwork is for a separate loan entirely, it wont affect your original mortgage. :) At least we have shifted the expectation on rate down somewhat.
Click to expand...

Oh, you don't know my mrs :p

The other thing about a loan is that the loan will be for £33k.....whereas the PCP will be for the difference between the sale price and future value. Say £33k - £25k = 8k
 
Mercenary Keyboard Warrior said:
Unsecured loan costs are going up not down right now
Click to expand...

I did notice sainsburys have bumped theres up a fair bit, although tescos is still low

My mind is thinking to take the PCP, get the car on the drive, get the mrs used to it, in six months when the house is done look into a loan. If I hate the car, I'll get shot, if I love it I'll take the loan.

Just before I do, I can put a few extra k down so the loan is less. Can't do it now.

Will be a waste of six months paying whatever rate I can get (supercar finance nor oracle can beat it)
 
TheOracle said:
The other thing about a loan is that the loan will be for £33k.....whereas the PCP will be for the difference between the sale price and future value. Say £33k - £25k = 8k
Click to expand...

This isn't the case.

Whilst the monthly repayment is based on the difference between the sale price and the future value, you are still borrowing the full amount and paying interest on the full amount. You're essentially still borrowing £33k, but then paying £8k off over 36 months or whatever and then paying the remaining 20k off at the end (by handing back the car).

Whether you fund a £35k car through a personal loan, a PCP or HP you are still borrowing £35k.
 
TheOracle said:
Oh, you don't know my mrs :p

The other thing about a loan is that the loan will be for £33k.....whereas the PCP will be for the difference between the sale price and future value. Say £33k - £25k = 8k
Click to expand...
You will still paying interest on the entire amount in that scenario. The rate is just as important as with a straight loan.

Edit: Fox has explained :)
 
TheOracle said:
and a loan linked to a mortgage is a no go.....the only reason the mrs would entertain something like that would be home improvements....like an extension....not a car
Click to expand...

In my head, if it's such a questionable idea to finance the car by using the house to get the best available rates, is the purchase of the car really that sensible?

If it fills you/your wife with doubt that your house would be at risk because of it, you shouldn't be buying the car, as if you're worried you'd not be able to pay it off at a good rate, then you probably shouldn't be getting into a deal at an even higher rate, even if it's not secured against your house.
 
Kenai said:
In my head, if it's such a questionable idea to finance the car by using the house to get the best available rates, is the purchase of the car really that sensible?

If it fills you/your wife with doubt that your house would be at risk because of it, you shouldn't be buying the car, as if you're worried you'd not be able to pay it off at a good rate, then you probably shouldn't be getting into a deal at an even higher rate, even if it's not secured against your house.
Click to expand...

It's not that, it's just she doesn't want anything touching the mortgage. It's a mindset.
 
Kenai said:
In my head, if it's such a questionable idea to finance the car by using the house to get the best available rates, is the purchase of the car really that sensible?

If it fills you/your wife with doubt that your house would be at risk because of it, you shouldn't be buying the car, as if you're worried you'd not be able to pay it off at a good rate, then you probably shouldn't be getting into a deal at an even higher rate, even if it's not secured against your house.
Click to expand...
This is where i am at too. The security is irrelevant when you are not going to default. This is why i find PCP/HP etc to be such awful products. They are sub prime options only as far as i am concerned when it comes to privately funded vehicles, and at that point you really need to consider whether you really want that car so badly that you cannot get it through a sensible funding option. It wouldn't be for me, when you can buy a car at any price and budget.
 
Jez said:
This is where i am at too. The security is irrelevant when you are not going to default. This is why i find PCP/HP etc to be such awful products. They are sub prime options only as far as i am concerned, and at that point you really need to consider whether you really want that car so badly that you cannot get it through a sensible funding option. It wouldn't be for me, when you can buy a car at any price and budget.
Click to expand...
Exactly this. PCP is always a terrible choice, but it gets people into fancy cars for not a lot per month - so they'll argue that it's brilliant in a hope to justify their decision.
 
Quick question, where are you guys getting these, quite literally, fantastical interest rate loans from?

Genuinely interested to see whose making them at sub 3% interest rates as I could buy out my car.
 
Jez said:
I have explained what a good rate should be at the moment, read up. For ease of reading; i would expect a sensible LTV additional loan to be offered at around 2% or slightly lower.

2.99% is not amazing, but it is a lot better than the awful deal which you signed, i think you would agree. Worth getting him to look into as it is likely unbeatable for his situation/current lender.
Click to expand...
As I said (read up), equity from my property was not an option due to my circumstances at the time. Therefore, a loan for over £40k would've been over 6% so I chose the HP option at 5.4%. I couldn't have got anything better.
 
You must log in or register to reply here.
Back
Top Bottom