Discussion
never bought a car on finance so just looking for an overview before I make a fool out of myself at a dealer.
How much percent of a deposit do you need for a car, and does it depend on the brand or the cost? If I wanted to buy a car worth say about 39,000, would a 25,000 deposit make most finance companies happy?(assuming your salary and credit rating suffice, which they do).
Curiously, I looked at Mercedes finance and they want £11k down for a C63 AMG which is not a lot considering the car is over £60k
How much percent of a deposit do you need for a car, and does it depend on the brand or the cost? If I wanted to buy a car worth say about 39,000, would a 25,000 deposit make most finance companies happy?(assuming your salary and credit rating suffice, which they do).
Curiously, I looked at Mercedes finance and they want £11k down for a C63 AMG which is not a lot considering the car is over £60k
ks. Generally dealers will tailor finance for you, but at the figures you are talking about then it may be worth looking into brokerages like Oracle etc.
If you have a look on the BMW Approved used website a lot of the cars have a finance calcualtor attached that helps you get an idea of how big and small deposits will affect the monthly and potential baloon payments. I know you're not looking at BMWs but the figures for a nearly new M3/5 should be broadly similar to those for the C63.
If you have a look on the BMW Approved used website a lot of the cars have a finance calcualtor attached that helps you get an idea of how big and small deposits will affect the monthly and potential baloon payments. I know you're not looking at BMWs but the figures for a nearly new M3/5 should be broadly similar to those for the C63.
Edited by Chrisw666 on Sunday 12th June 17:38
Chrisw666 said:
Generally dealers will tailor finance for you, but at the figures you are talking about then it may be worth looking into brokerages like Oracle etc.
If you have a look on the BMW Approved used website a lot of the cars have a finance calcualtor attached that helps you get an idea of how big and small deposits will affect the monthly and potential baloon payments. I know you're not looking at BMWs but the figures for a nearly new M3/5 should be broadly similar to those for the C63.
You mean like a bank loan, why is that?If you have a look on the BMW Approved used website a lot of the cars have a finance calcualtor attached that helps you get an idea of how big and small deposits will affect the monthly and potential baloon payments. I know you're not looking at BMWs but the figures for a nearly new M3/5 should be broadly similar to those for the C63.
Edited by Chrisw666 on Sunday 12th June 17:38
theres a lot of choice for 30k odd cars so no idea what ill go for. Does car brand matter? I remember readng how its very difficult to get a porsche on finance, no idea of that comments credibility though
Don't be surprised that MB are happy with a relatively small deposit - it means you're paying the agreed interest rate on a larger amount. That means more profit for the dealership / finance company. You're best off therefore paying for as much of the car in advance of possible, generally speaking. You'll pay less in interest and should the car be written off you can be sure the insurance payout will exceed the remaining finance amount. Even allowing for a reduced payout due to depreciation
In general you may find that finance is offered at a lower APR when borrowing larger amounts. Your challenge should be to haggle down the APR they offer for the relatively small amount you borrow. You'll then pay less money for the car of course. As has been said it may be worth investigating specialist finance company (see back pages of Evo etc). As with car insurance you should shop around and keep a careful eye on what APR is being quoted, always ask for the total amount to be repaid and check for restrictions like max mileage and costs for early settlement. You may also be offered useful options like payment holidays once a year etc. Always check the features you want aren't excluded by the finance agreement. E.g. GAP insurance
If all else fails collect the details for the two best finance offers and pop them on here for the experts to dissect
HTH
Andy
In general you may find that finance is offered at a lower APR when borrowing larger amounts. Your challenge should be to haggle down the APR they offer for the relatively small amount you borrow. You'll then pay less money for the car of course. As has been said it may be worth investigating specialist finance company (see back pages of Evo etc). As with car insurance you should shop around and keep a careful eye on what APR is being quoted, always ask for the total amount to be repaid and check for restrictions like max mileage and costs for early settlement. You may also be offered useful options like payment holidays once a year etc. Always check the features you want aren't excluded by the finance agreement. E.g. GAP insurance
If all else fails collect the details for the two best finance offers and pop them on here for the experts to dissect
HTH
Andy
TheStoat said:
Don't be surprised that MB are happy with a relatively small deposit - it means you're paying the agreed interest rate on a larger amount. That means more profit for the dealership / finance company. You're best off therefore paying for as much of the car in advance of possible, generally speaking. You'll pay less in interest and should the car be written off you can be sure the insurance payout will exceed the remaining finance amount. Even allowing for a reduced payout due to depreciation
In general you may find that finance is offered at a lower APR when borrowing larger amounts. Your challenge should be to haggle down the APR they offer for the relatively small amount you borrow. You'll then pay less money for the car of course. As has been said it may be worth investigating specialist finance company (see back pages of Evo etc). As with car insurance you should shop around and keep a careful eye on what APR is being quoted, always ask for the total amount to be repaid and check for restrictions like max mileage and costs for early settlement. You may also be offered useful options like payment holidays once a year etc. Always check the features you want aren't excluded by the finance agreement. E.g. GAP insurance
If all else fails collect the details for the two best finance offers and pop them on here for the experts to dissect
HTH
Andy
wow brilliant thanks. i mean I could buy a 32k car cash but then id have sod all money for food, so I can either save for a few more months and buy in winter (no thanks), or pay a bit of interest and have it now. In general you may find that finance is offered at a lower APR when borrowing larger amounts. Your challenge should be to haggle down the APR they offer for the relatively small amount you borrow. You'll then pay less money for the car of course. As has been said it may be worth investigating specialist finance company (see back pages of Evo etc). As with car insurance you should shop around and keep a careful eye on what APR is being quoted, always ask for the total amount to be repaid and check for restrictions like max mileage and costs for early settlement. You may also be offered useful options like payment holidays once a year etc. Always check the features you want aren't excluded by the finance agreement. E.g. GAP insurance
If all else fails collect the details for the two best finance offers and pop them on here for the experts to dissect
HTH
Andy
MattVXR87 said:
You mean like a bank loan, why is that?
theres a lot of choice for 30k odd cars so no idea what ill go for. Does car brand matter? I remember readng how its very difficult to get a porsche on finance, no idea of that comments credibility though
I would always look at more than a couple of options, dealer finance is sometimes at low subsidised rates especially on new metal but a bank loan is often a cheaper way to borrow money than used car finance.theres a lot of choice for 30k odd cars so no idea what ill go for. Does car brand matter? I remember readng how its very difficult to get a porsche on finance, no idea of that comments credibility though
I would imagine some brands (Mercedes, BMW being 2 that come to mind) where finance is the rule rather than the exception for most of their sales. No idea about porsche but I am certain the specialists if not the OPCs will help you finance cars and I can't see why OPCs wouldn't either.
Whether or not finance is for you only you can decide as you have all of the details about your income and other commitments. But one word of caution I would give you is don't borrow over a long period if you are likely to need to change cars, and make sure you budget for repairs.
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