help with finance please
- Thread starter cm1179
- Start date
Flat rate is no trick! It's part of all finance be it bank or car. Car credit is a loan just like a bank. They are all underwritten by banks, high street banks in most cases. But unlike loans from the high street the advertised rates are fixed and not typical.
Best advice is still negotiate on all fronts-cost to change/rate.
Best advice is still negotiate on all fronts-cost to change/rate.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
I'm glad you now realise this. Perhaps you can stop implying that taking out car credit allows you to still take out a bank loan for other purposes as if taking out a bank loan doesn't allow this.
Exactly, so everyone has to pay the price of the additional security the lender requires for people with poorer credit. With a bank loan, two thirds of applicants get the decent rate and only those with poor credit (Who really ought to think hard about whether yet another loan is a good idea) pay more.
Well so is Fox...
If you're really so sure that your suggestion is better, put a bit of effort into backing it up, it would be to the benefit of many people if you were right and could show it clearly.
Ok simply put- 100% of customers entering my dealership will get rate offered on acceptance by underwriter.
As others have already stated 30% of bank customers will not.
People are under the illusion that not taking the finance offered by dealer will mean they get a better deal on the new vehicle. Not always true as some dealers will use the commission from the finance company to discount the car/van further.
Good luck with the purchase cm1179.
As others have already stated 30% of bank customers will not.
People are under the illusion that not taking the finance offered by dealer will mean they get a better deal on the new vehicle. Not always true as some dealers will use the commission from the finance company to discount the car/van further.
Good luck with the purchase cm1179.
torinn, can i ask (iye) how much a van of £11.5k could be knocked down? it's a vw transporter with 4k miles and has apparently 'just arrived'. do they want to get rid of stuff that has just arrived as quickly as possible, or is there less room for negotiation as compared to a car that has been on the forecourt for a few months?
If it's been there a while they will want to get rid of fast. Most dealerships have a 50/60 day stocking policy and it will be costing them money to have it there to long. New to the forecourt will have the bigger margin of profit for them, which they won't want to give to much of.
Exactly.
So 70% of your customers pay a higher rate than they should do in order to provide sufficient risk avoidance to the finance company for the remaining 30% who pay the same rate.
Whereas for a bank loan, 70% of people pay a rate that reflects their creditworthyness, and those with crap credit pay more.
How can your finance scheme be a benefit unless your credit rating is poor?
If you dont have bad credit, you'll almost always get a better deal from your bank unless the finance is in some sort of manufacturer sponsored deal or special offer.
Tw- at the moment with sales as low as they are within the industry it's possible that the majority of dealerships can now beat bank rates 9 out of 10 times. Again advice is to shop around. The average salesman won't care where the money is coming from as long as they can get a sale.
it's a 2009 model from a main dealer and has only got 4k on the clock, a quick bit of research shows this is a good price and i am going to ask them what finance payments would be (it's at the same dealership i bought the lupo from) i'm not commited to this route but finance does have it's benefits with a VAT registered business and cashflow against initial outlay
Yea i know that bit, im just wondering why you want to jump from a 4k car to a 12k van, whats the matter with a 6k van?
well, a 6k van (in all likelihood) wont be as reliable (if my van doesn't work, i can't work) it wont have a warranty and also i may be able to come to some sort of finance agreement as i know the dealership and brought the car from them, just weighing up my options atm
How do you get to work now if your car doesnt work?
Is your van being broken for a day or two likely to cost you the £6k extra you're looking to pay?
Can you settle the finance on your car so that's not a factor? (e.g., take a bank loan rather than using a dealer's finance facilities and take enough to also settle the car finance). Don't get trapped in the idea that you have to always go back to the same dealer or that they'll do you any "favours" for being loyal.
Is your van being broken for a day or two likely to cost you the £6k extra you're looking to pay?
Can you settle the finance on your car so that's not a factor? (e.g., take a bank loan rather than using a dealer's finance facilities and take enough to also settle the car finance). Don't get trapped in the idea that you have to always go back to the same dealer or that they'll do you any "favours" for being loyal.
Are you VAT registered?
Have you obtained a settlement figure?
Have you been given a PX valuation?
What sort of deposit do you have?
What's your monthly budget?
Certainly if you're looking at HPing a van and are VAT registered - I would NOT get a personal loan.
Biggest benefits here will be, ability to offset certain taxes, 1/2ths and 1/3rds (Voluntary termination, Repossesion Rights)
Ignore [TW]Fox he still lives at home with his parents and drives a car he bought with his student loan about 45 years ago.
Have you obtained a settlement figure?
Have you been given a PX valuation?
What sort of deposit do you have?
What's your monthly budget?
Certainly if you're looking at HPing a van and are VAT registered - I would NOT get a personal loan.
Biggest benefits here will be, ability to offset certain taxes, 1/2ths and 1/3rds (Voluntary termination, Repossesion Rights)
Ignore [TW]Fox he still lives at home with his parents and drives a car he bought with his student loan about 45 years ago.
