Car finance help

[s99ane]

Hi I am looking for the best deal I can get on staright car finance. I have been offered 6% flat rate by the dealer. Is this good? Where can I get better.

Unfortunately Idont really understand the difference between flat rate and apr. Can some of you finance gurus help and explain this flat versus apr conundrum.

Thanks

[911wise]

s99ane said:

Hi I am looking for the best deal I can get on staright car finance. I have been offered 6% flat rate by the dealer. Is this good? Where can I get better.

Unfortunately Idont really understand the difference between flat rate and apr. Can some of you finance gurus help and explain this flat versus apr conundrum.

Thanks

6% Apr wouldn't be bad try and push him for a bit lower get the Apr rate cos thats the one that does the damage.

[s99ane]

So how does 6% flat compare to 6% apr? Its higher right? But how much higher?

[magic torch]

That's awful.

With a flat rate the interest is charged on the original amount you borrow. So, no matter what you repay, you still pay interest on the original sum you loaned. A 6% interest rate, works out roughly to be about 12% APR.

I'd be looking for about 1.5% over base interest rate APR.

Send me a mail if you'd like some contacts.

[911wise]

magic torch said:

That's awful.

With a flat rate the interest is charged on the original amount you borrow. So, no matter what you repay, you still pay interest on the original sum you loaned. A 6% interest rate, works out roughly to be about 12% APR.

I'd be looking for about 1.5% over base interest rate APR.

Send me a mail if you'd like some contacts.

Whats base at moment?

[2something]

911wise said:

magic torch said:

That's awful.

With a flat rate the interest is charged on the original amount you borrow. So, no matter what you repay, you still pay interest on the original sum you loaned. A 6% interest rate, works out roughly to be about 12% APR.

I'd be looking for about 1.5% over base interest rate APR.

Send me a mail if you'd like some contacts.

Whats base at moment?

5.25% projected to go to 5.50% at next MPC

[Egbert Nobacon]

s99ane said:

So how does 6% flat compare to 6% apr? Its higher right? But how much higher?

Blimey, just fired up my dusty old finance computer ....

6% flat (fixed rate) on a 24 month term = 11.7 % APR (no fees, payments monthly in arrears)

6% flat (fixed rate) on a 36 month term = 11.6 % APR (no fees, payments monthly in arrears)

6% flat (fixed rate) on a 48 month term = 11.5 % APR (no fees, payments monthly in arrears)

As a rough (and I mean rough) rule of thumb double your flat rate and subtract 0.3 gives you a guide to the APR on 24 to 72 month terms assuming no fees are included and payments are in arrears.


As an aside - you should be able to do significantly better than 6% flat unless you have a dubious credit history - rate reflecting risk and all that.

Get some personal loan quotes from major lenders and compare.

Edited by Egbert Nobacon on Tuesday 10th April 20:49

[butzi]

Hope the link works but consider Jamie as he's arranged finance for a lot of the guys buying 911s, and gives very good deals, and great service. He's arranged for the finance for my RS which was quite tricky because the car needed to be imported from Germany.

www.911uk.com/forum/display_topic_threads.asp?ForumID=41&TopicID=10019&PagePosition=1