Car Finance Question

[RSR]

Hi Chaps,

I am after some advice on car finance please. Ive never done this before as in the past ive bought my cars outright. The dealers has offered a few options that seem pretty interesting. However, ive not got a clue about this options.

Does any one have any advice on this?

Thanks

Andy

 

[RSR]

All I can really advise is that dealer finance is often a poor way to do things.

If you have to finance a car with loan capital, you might be better off looking at bank loans. Start by comparing rates at moneysupermarket etc.

What options has the dealer given you?

Ahhh i see ive got 3 options from the dealer the normal HP ,LH and a further option to have a trade in deal with a new car in 3 years.

Just looking for some advice on it

Thanks

 

[RSR]

What is the value of the car?

around 55/60k *goes red*

Andy

 

[RSR]

http://www.performancecarfinance.co.uk/

Give them a phone, I believe the guys name is Jamie. Don't think you'll find cheaper.

Thanks mate.

Andy

 

[RSR]

How much can you actually afford in cash?

I dont want to go in to details on a forum chap

I was just asking for advice. However, i do have a good deposit for it.

Andy

 

[RSR]

If you need to finance it, you can't afford to run it. (But maybe you just want to buy the option to keep your cash reserves and can afford it, in which case which car is it?)

Thats a bit of a narrowminded view. Also one of the reasons i dont want to give out too many details.

 

[RSR]

The last person who didn't want to go into details bought a Clio from Carshaft for double the sticker price on finance. Let us help you

Thats nice, well its going to be a expensive clio then

I was just asking for advice not, i should do this, this or this

 

[RSR]

at that price I assume that it is a new car (good on you) LH and HP are very similar however as with all things it's down to the small print, this depends on the company providing the finance, when they gave you the quote for the car they HAVE and would have given you a breakdown of whats involved and the costs,. I personnally have new cars every couple of years, not exciting cars mind just run of the mill family stuff. and have so far always gone with the options option( diffenent companys call it different things, basically deposit + monthly payment then either give car back or pay the MGF). I give back and start again.


I'm guessing a Merc of some kind ?

bullit

Well one option is new and the other is 2nd. Its not a merc unfortunatly but it is a sporty car haha.

Thanks for that, ill have to have a read then.

Thanks once again

Andy

 

[RSR]

You have to expect people chiming in with their "advice" in motors though!

Generally there are the people who don't finance cars, those who don't like new cars (because when you want a new Golf GT, a 5 year old M3 will suffice, as in one recent example) and the rest.

The link I gave you above should help - he's a helpful chap and consistently beats dealer rates by quite a bit.

Yea i know mate, i just dont like putting details about money etc.. on a public forum as i dont know who is reading it.

Ill pop them a email in a minute mate.

Thanks

Andy

 

[RSR]

Details about the finance options.

Well for a example.

Monthly payment: £805.67
Total cash price: £59,900
Deposit: £11,980.00
Term: 37 Months
Final payment: £31,137
APR: 10.5 %

 

[RSR]

that apr looks quite high.... I'm assuming now that it's not a main dealer at that price for the finance


£40K over three years providing you dont want to keep it at the end

£14K a year


to rich of me , but that might be perfectly acceptable to you, but that is still a hight rate IMO. main dealer rates on PCP are about 5% at the mo

bullit

That was just a example mate. Ill look around i think for a better deal.

 

[RSR]

59k and 54k OTR Prices. That was just a example i have. I am just working out the best way to finance the car.

 

[RSR]

LOL

 

[RSR]

The 10% was just a example. Ive just found a much better deal from the link jamief.

Thanks for the input chaps.

Andy

 

[RSR]

The main problem is the huge baloon in the deal, remember you pay interest on this - AND you're not making any capital repayments off it. All this does is rake up the interest.

Three ways to tackle it - get a lower rate from the dealer, get a lower rate from someone else, or get money knocked off the screen price to offset the 10% APR.

Last thing - make sure the residual value after 3 years is more than the balloon (or more to the point make sure the baloon is set to a figure lower than the residual) otherwise you might be walking away with nothing in your hand to put down on a new car, having spent 36 x £xxx and your deposit.

Thanks chap

Andy