Discussion
pgilc1 said:
tuffer said:
LordGrover said:
Why? I'll bet it's not making much interest - may as well spend it and reduce the finance costs.
Because:A, I can make more on it by investing wisely
B, If things go tits up I have some cash to see me through
That would be my thinking too (FWIW)
Ean218 said:
tuffer said:
LordGrover said:
Why? I'll bet it's not making much interest - may as well spend it and reduce the finance costs.
Because:A, I can make more on it by investing wisely
£20k at 8% over 3 years is £425 with a final payment of £8000.
Or
£402 over 60 months with no balloon.
Good loan calculator....
http://www.dynamic-webs.co.uk/information/car_loan...
Or
£402 over 60 months with no balloon.
Good loan calculator....
http://www.dynamic-webs.co.uk/information/car_loan...
sinizter said:
Is it possible to bargain the APR down ? Or is it a matter of tweaking the term and initial deposit to get better rates ?
In my limited experience, yes. I didn't bother negotiating the odd £100 on the px value but asked for a better APR. The guy just changed the rate on the computer and recalculated - still too high so I had him change it again until it was acceptable.This all depends on how much they were taking the mickey in the first place of course. The APR is the most important figure in a PCP deal IMO.
You can always barter on APR, inter lending is at around 3% above base at the moment which means it is costing them around 3.5%.
I was offered 4% above base from Lombard last week, so 4.5% apr.
Tell BMW that you can get the loan through Lombard at 5.5% (which is pretty much the average at the mo) so they need to be close to that to get the business, they will move.
I am amazed at how many of my mates are chuffed to bits with £1k off the car and then they end up paying an extra £3k in interest over the term.
I was offered 4% above base from Lombard last week, so 4.5% apr.
Tell BMW that you can get the loan through Lombard at 5.5% (which is pretty much the average at the mo) so they need to be close to that to get the business, they will move.
I am amazed at how many of my mates are chuffed to bits with £1k off the car and then they end up paying an extra £3k in interest over the term.
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