Do people really get low dealer APR or am I missing a trick?
Discussion
Been looking at a used car but many dealers will only go as low as 10.9%
I have a pretty decent credit rating and track record. I can get offers from banks for around 6% or less on a car loan.
Is there some kind of way pushing dealers? Even when I told the dealer I could do better they wouldn’t budge from 10.9% and one was even refusing to move from 14.6%
Browsing some other forums there are a few people boasting about a 3.6% rate from a dealer.
What gives?
I have a pretty decent credit rating and track record. I can get offers from banks for around 6% or less on a car loan.
Is there some kind of way pushing dealers? Even when I told the dealer I could do better they wouldn’t budge from 10.9% and one was even refusing to move from 14.6%
Browsing some other forums there are a few people boasting about a 3.6% rate from a dealer.
What gives?
t show as you are finding. Recently drove 150 mikes to view a car over xmas and hadnt arrsnged bank loan, liked it so much we bought it there and then. 7.5k on the credit credit and balance transferred it to a new credit card 0% transfer fee and 0% for 20 months. Further to this £20 cashback from Barclays aswell due in a month or so.
Recent legislative changes means you can't be charged a transaction fee for using a credit card either.
Credit is cheaper everywhere (0% from next, Ikea, credit cards, jewellers etc) apart from used dealers it would seem.
Recent legislative changes means you can't be charged a transaction fee for using a credit card either.
Credit is cheaper everywhere (0% from next, Ikea, credit cards, jewellers etc) apart from used dealers it would seem.
It’s always high on used cars, bank loans or credit cards are better
Unless you buy a new seat, they have 0% APR, although I’m sure they’ve just poped the interest into the monthly payment!
Wasn’t it the case that recently you could buy w brand new 5 and 6 series cheaper over a term than buying a BMW approved one due to massive finance contributions and 0%
Unless you buy a new seat, they have 0% APR, although I’m sure they’ve just poped the interest into the monthly payment!
Wasn’t it the case that recently you could buy w brand new 5 and 6 series cheaper over a term than buying a BMW approved one due to massive finance contributions and 0%
Friend of my daughters wanted a new car and on the spur of the moment went to one of these large car shops with her step dad.
Found a 13reg DS3 for £5600!
I'm sure it's a nice car but she then took out their finance deal so is paying £200 pcm over 48 months.
Total payable = £9600!
Not sure what APR that is but it must be well into double figures.
Guaranteed she will be bored of it in 2 years max and will then want to change hence she is in the never ending finance trap now.
Also she traded in her 09reg Corsa 1.0. It was the base model but still an ok car.
They gave her £390 for it :-)
Found a 13reg DS3 for £5600!
I'm sure it's a nice car but she then took out their finance deal so is paying £200 pcm over 48 months.
Total payable = £9600!
Not sure what APR that is but it must be well into double figures.
Guaranteed she will be bored of it in 2 years max and will then want to change hence she is in the never ending finance trap now.
Also she traded in her 09reg Corsa 1.0. It was the base model but still an ok car.
They gave her £390 for it :-)
My GT86 was offered on PCP or HP for 2.9%, that was on a 6 month old car. New cars at the time were 4.9% if you wanted one.
That was a flat-rate offered by the dealership at the time on used cars, some (including at least 1 GT86) were being offered at 0% used. They do exist, but they're not very common.
This was a year ago, Steven Eagell group.
That was a flat-rate offered by the dealership at the time on used cars, some (including at least 1 GT86) were being offered at 0% used. They do exist, but they're not very common.
This was a year ago, Steven Eagell group.
I tried to negotiate a lower rate at Volvo having been offered 7.9% telling the salesman I can get a person loan of 2.8% and no interest in moving to get my business was shown. Finance rates on some cars can make no sense and I’m pretty sure the franchises simply rely on people that are not to smart to challenge or even understand the interest rates offered.
If you follow any motor groups on social media you’ll notice they always punt a deal on low deposit and monthly payments only mentioned. No mention of interest rate, total amount payable or even the screen price. Just xxx deposit and xxx a month, I think for the majority that’s all that matters.
If you follow any motor groups on social media you’ll notice they always punt a deal on low deposit and monthly payments only mentioned. No mention of interest rate, total amount payable or even the screen price. Just xxx deposit and xxx a month, I think for the majority that’s all that matters.
Edited by Edible Roadkill on Monday 14th January 10:07
silentbrown said:
indestructible focus said:
Recent legislative changes means you can't be charged a transaction fee for using a credit card either.
Doesn't mean they have to accept your credit card payment, though. They just can't charge a fee if they do.I thought I read somewhere that FCA regulation meant that dealers could only offer advertised interest rates on finance packages (as a reseller) meaning there was no way they could negotiate the interest. So they could sell you a different finance product but they couldn't negotiate on the APR%.
I may have dreamt that.
I may have dreamt that.
I've recently dealt with a main dealer and the advertised rate on the approved used website was 12.9% or thereabouts.
Before i even asked for the APR to be reduced it has been knocked down to 10% of which i then asked again and it was knocked down to below 9%.
What is the scope of these rate drops....
Also i was also told that using a credit card i would only be able to place either £1000 or 5% of the vehicle purchase price whichever was greater.
Before i even asked for the APR to be reduced it has been knocked down to 10% of which i then asked again and it was knocked down to below 9%.
What is the scope of these rate drops....
Also i was also told that using a credit card i would only be able to place either £1000 or 5% of the vehicle purchase price whichever was greater.
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