Garage finance or loan?

[funbobby]

So to keep it simple if I had 20k deposit on a 40k car would I normally get a better deal on a used car with their than a loan?

[Monkeylegend]

funbobby said:

So to keep it simple

This is PH, no chance.

[barryrs]

If used then I think personal loans at just under 5% look a bit cheaper however if buying new there are some excellent contributions for using finance.

[funbobby]

Just had a quick look at loans and they start at about 4.5 % I'm thinking finance deals on used won't be as good ?

[PaulG40]

Awaits the typical PH argumentative response of "Finance is for losers, we only buy in cash, etc"...

[Four Litre]

Loan - you're not stuck with the car should your situation change. Just make sure your payments track its depreciation.

I've done that since I was 18 - now 40! No regrets. Once nearly took out BMW finance until I worked out how restrictive it was and you get raped at the end of term.

[bananaman1]

A garage offered me a loan yesterday at a rate of 3.8% on a 2nd hand car.which I thought was pretty good....wasn't interested so didn't read the small print

[Rakoosh]

How long do you need the 'loan' for?

If its just for a year / year and a half one option would be to get a few credit cards and get 0% for 15 months etc to make up the difference?

Mind you some/most dealers will charge 1~2% on the amount you put on the credit card!!

Generally though - the above posters have nailed it. For a lot of new cars you will get some great deals (close to if not 0% apr) - but on used it will not be as great and you may well get better on a personal loan. Can't really provide a definitive answer (sorry not simple) as it just depends but I think its pretty close tbh.

Not sure on your income etc but getting an unsecured personal loan of 20k might be tougher than most people think and its more circa 6%+ I would say and used car dealers often circa 7/8% (but there are deals to be had there).

Banks also do 'car loans' as well but similar rates to unsecured i.e. 6-7%

Obviously the best bet if you have a mortgage would be draw some out of there - umm best bet in terms of getting the lowest rate - don't want to open up a can of worms / start debate re: whether you should borrow off your house to fund your car!

[funbobby]

prob over 3 years.

[5paulmv]

Hi bob iff your looking for a noble upto 40 k have a nosey at my old m400 at track v road sure you could do a deal with some finance and the vx the m 400 s holding strong money regards Paul

[Northernchimp]

bananaman1 said:

A garage offered me a loan yesterday at a rate of 3.8% on a 2nd hand car.which I thought was pretty good....wasn't interested so didn't read the small print

APR or flat? One is excellent, the other isn't.

[Ozzie Osmond]

If you can borrow at 3.8%, go for it! That's barely above a fully secured mortgage rate.

Last week Halifax contacted me offering a personal loan. I clicked £10k to check for a "car purchase" and they came back with a very attractive ...... 9.8%. Idiots.