Discussion
Is the flat rate I have been offered on a vehicle purchase with a large deposit on HP, or 8.2% on PCP which I don’t really want. Is the 3.99% as good as it gets as I didn’t have to try very hard for it, and have also a few other goodies thrown in.
I have never taken a loan near the amount that this would be, so have very little experience. It’s affordable after all other outgoings and leaves a decent enough sum for living costs.
I would never have considered this previously, but over the last few years a number or random events have transpired to remove some friends and family from this earth
I guess I just want to enjoy what I have worked hard for, and staring at a bank statement doesn’t fill me with joy anymore.
I have never taken a loan near the amount that this would be, so have very little experience. It’s affordable after all other outgoings and leaves a decent enough sum for living costs.
I would never have considered this previously, but over the last few years a number or random events have transpired to remove some friends and family from this earth
I guess I just want to enjoy what I have worked hard for, and staring at a bank statement doesn’t fill me with joy anymore.lingus75 said:
Is the flat rate I have been offered on a vehicle purchase with a large deposit on HP, or 8.2% on PCP which I don’t really want. Is the 3.99% as good as it gets as I didn’t have to try very hard for it, and have also a few other goodies thrown in.
I have never taken a loan near the amount that this would be, so have very little experience. It’s affordable after all other outgoings and leaves a decent enough sum for living costs.
I would never have considered this previously, but over the last few years a number or random events have transpired to remove some friends and family from this earth I guess I just want to enjoy what I have worked hard for, and staring at a bank statement doesn’t fill me with joy anymore.
If 3.99% is the flat rate then that works out to about twice that for APR and you can definately do better than 8% APR. You should be aiming to be nearer 6%. Is this from a dealer finance deal? I've found that they are very disingenous and will even outright lie about the interest rate to get you to sign. You need to take the amount you are actually going to borrow and just plum the figures into an online loan calculator which will tell you the real rate you are getting.I have never taken a loan near the amount that this would be, so have very little experience. It’s affordable after all other outgoings and leaves a decent enough sum for living costs.
I would never have considered this previously, but over the last few years a number or random events have transpired to remove some friends and family from this earth
I guess I just want to enjoy what I have worked hard for, and staring at a bank statement doesn’t fill me with joy anymore.Guvernator said:
If 3.99% is the flat rate then that works out to about twice that for APR and you can definately do better than 8% APR. You should be aiming to be nearer 6%. Is this from a dealer finance deal? I've found that they are very disingenous and will even outright lie about the interest rate to get you to sign. You need to take the amount you are actually going to borrow and just plum the figures into an online loan calculator which will tell you the real rate you are getting.
Yep, from Porsche dealer. On the rates they are stating that 3.99% flat is the best they can do as they are sacrificing all the commission, perhaps not a straight as I thought?! I have spoken in the past with a few brokers who will be keen to do a deal so I will see what they can do.
Defcon5 said:
What is the difference between flat rate and APR?
The flat rate applies throughout the whole length of the debt, but is a lot easier to work out.Say you borrow £1000 at 4% flat for 2 years, you would pay £1000 + (2 x 40)
With APR it takes into consideration that you have paid off a chunk of interest throughout the life of the debt, as well as any other costs incurred.
Usually the APR is around double the flat rate (ish)
3.99 flat isn't actually that bad.
I have been through a lot of finance deals recently as I have bought 2 new cars in the last couple of months.
There are so many factors to take into account. i.e. do you want the lowest monthly payments or the lowest cost over the term of the finance.
Are you looking at PCP, Lease purchase or HP?
Just as an example, I arranged the finance for my range rover and found the best quote i could at 8% apr. I mentioned this to my friend who is dealer principle at a bentley dealership. He said I can beat that so I said ok let me know what you can do.
Now, yes he could beat the apr (7.3%apr) but the residual value on his deal was £4k lower than on mine, making the monthly payments a lot more expensive but cheaper over the term of the finance.
As I tend to only keep cars around 2 years I always go for lower payments.
Also the choice of car and the deposit amount will both have an effect on the available rates.
Finally I would recommend you have a chat with www.car-finance.net. They are a broker that I have used to purchase my last 7 cars and on every one of the deals I haven't been able to find anyone that could beat them including oracle who couldn't get close. They use lots of different finance companies, the 2 that they arranged on my current cars are with alphera(BMW) and ALD both are regulated which is another thing I would suggest you check.
hope this helps.
I have been through a lot of finance deals recently as I have bought 2 new cars in the last couple of months.
There are so many factors to take into account. i.e. do you want the lowest monthly payments or the lowest cost over the term of the finance.
Are you looking at PCP, Lease purchase or HP?
Just as an example, I arranged the finance for my range rover and found the best quote i could at 8% apr. I mentioned this to my friend who is dealer principle at a bentley dealership. He said I can beat that so I said ok let me know what you can do.
Now, yes he could beat the apr (7.3%apr) but the residual value on his deal was £4k lower than on mine, making the monthly payments a lot more expensive but cheaper over the term of the finance.
As I tend to only keep cars around 2 years I always go for lower payments.
Also the choice of car and the deposit amount will both have an effect on the available rates.
Finally I would recommend you have a chat with www.car-finance.net. They are a broker that I have used to purchase my last 7 cars and on every one of the deals I haven't been able to find anyone that could beat them including oracle who couldn't get close. They use lots of different finance companies, the 2 that they arranged on my current cars are with alphera(BMW) and ALD both are regulated which is another thing I would suggest you check.
hope this helps.
I forgot to add that APR is representational of the full cost over the full term of the finance.
What this means is it takes in to account 1 off charges (like arrangement fees, document fees and option to purchase fees) and includes them in the total cost. These charges will vary between finance companies.
What this means is it takes in to account 1 off charges (like arrangement fees, document fees and option to purchase fees) and includes them in the total cost. These charges will vary between finance companies.
Generally HP rates will be a bit lower than pcp deals but the monthly repayments will be a lot more.
The reason a pcp deal will cost a lot more generally is because you are paying less capital off in your monthly payments as a large chunk is deferred to the end of deal, which will either need paying off if you have the cash, car handing back or the outstanding amount financed in another way(ie personal loan)
The reason a pcp deal will cost a lot more generally is because you are paying less capital off in your monthly payments as a large chunk is deferred to the end of deal, which will either need paying off if you have the cash, car handing back or the outstanding amount financed in another way(ie personal loan)
I imagine that your credit rating is pretty good if your in the market for a 997, in that case you can get 6% with Tesco or First direct (upto 15k) personal loan. Always worth extending your mortage if you can/if you have one too. I guess you could combine a couple of these to get your capital
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