Cheapest way to finance a car?
Discussion
Loan rates are pretty low at the moment (if you use a reputable lender).
I'd recommend speaking to whoever you have your personal current account with, and seeing how much they will lend you.
Generally speaking, the more you borrow, the better the APR will be.
Then, when buying your new/used car, you'll be a cash buyer, putting you in a strong position, vis a vis negotiation on price.
I'd recommend speaking to whoever you have your personal current account with, and seeing how much they will lend you.
Generally speaking, the more you borrow, the better the APR will be.
Then, when buying your new/used car, you'll be a cash buyer, putting you in a strong position, vis a vis negotiation on price.
Surely the best way is the way that is cheapest in any given situation at a given time.
Take a look at leasing - go for a good deal through a broker etc who has cars they need to shift and you'll exceed any discount you'd get from a dealer, no hassle with px or disposing of the vehicle etc etc.
As an additional dividend you can get loads of PHers frothing at the mouth about you getting a car that you cannot really afford etc etc yada yade. Worth it in it's own right!
Take a look at leasing - go for a good deal through a broker etc who has cars they need to shift and you'll exceed any discount you'd get from a dealer, no hassle with px or disposing of the vehicle etc etc.
As an additional dividend you can get loads of PHers frothing at the mouth about you getting a car that you cannot really afford etc etc yada yade. Worth it in it's own right!
NewRulesPaul said:
Bank loan, better apr rate than most finance companies and no finance tied to the car should you wish to sell at anytime.
This ^- your experience may differ, yadda yadda yadda*
If you have to finance and you have a problem free credit rating a bank loan is the way to go, you will always get a better rate and that will save you thousands on for example a 4 year term.
Finance offered by the seller always seems to be targeted at those with troublesome credit ratings. The worst offenders from my experience seem to be car supermarkets and small 2nd hand dealerships.
eztiger328 said:
If you have to finance and you have a problem free credit rating a bank loan is the way to go, you will always get a better rate and that will save you thousands on for example a 4 year term.
Mine are on 0% PCP. Pretty hard to top that unless the salesman gives you a handy whilst you're signing the finance docs.Rawwr said:
Mine are on 0% PCP. Pretty hard to top that unless the salesman gives you a handy whilst you're signing the finance docs.
True, I was thinking along the lines of personal HP. If the OP went through his business and got one as a company car I suspect the PCP route may be better, especially at 0% ? I'm in a similar boat to the OP, had my current car written off, it was getting on a bit so my payout is going to be F all. Have about £3k,but all the newer motors which interest me are sitting at £4.5-5.5kish. I have a low credit limit and an inconsistent income, but a fairly good credit rating, toying with either just accepting my budget and going for a cheaper, older motor again. Or experimenting with a loan. Never borrowed before so I really don't know where to start 
Would really like something flexible, some months I could probably pay off £600 worth, other months £100 would be a struggle.
Would really like something flexible, some months I could probably pay off £600 worth, other months £100 would be a struggle.
Personally I`d be getting a Bank loan.
HP will leave you with a possible negative equity or very little left after selling, especially if you needed to do so in early in the loan term & PCP or lease would present issues if you wanted to get out early for some reason.
Good luck with your new venture.
HP will leave you with a possible negative equity or very little left after selling, especially if you needed to do so in early in the loan term & PCP or lease would present issues if you wanted to get out early for some reason.
Good luck with your new venture.
sat1983 said:
Bank loan it is then! Problem is I've never really borrowed much so I have no idea if I'll get the £12k loan I need... And trying it out mentions the fact that it can hurt your credit rating!
Thinking out loud here. If all your money is tied up, do you really need a 12k car? You can get something reliable for a lot less than that if money is tight at the moment.sat1983 said:
Bank loan it is then! Problem is I've never really borrowed much so I have no idea if I'll get the £12k loan I need... And trying it out mentions the fact that it can hurt your credit rating!
As long as you've borrowed in some shape or form and haven't defaulted. When I first tried to get a car loan I was rejected because I'd never borrowed before or had a credit card. Apparently not being in any form of debt is a risk to the lender.... (I know there's more to it but i find it a bit silly) I'm no expert but from personal experience as long as your on the electoral roll, have never defaulted on a payment (loan, ccard , phone bill) and the loan amount is sensible when compared to your income you should be ok and not rejected.
sat1983 said:
Bank loan it is then! Problem is I've never really borrowed much so I have no idea if I'll get the £12k loan I need... And trying it out mentions the fact that it can hurt your credit rating!
I would have a chat with someone at the bank before applying. If you've been with them for 5 years+, kept your account in order, and have a half-decent credit rating, you should be OK.Talking of credit ratings, this lot will let you know what your credit rating is for free:
www.clearscore.com
Costs nothing to sign up, and there are no ongoing fees/trial periods, etc. I believe they make their money from recommending loans, credit cards, etc.
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