Lloyds Bank Car Loan

Lloyds Bank Car Loan

Author
Discussion

MKA29

Original Poster:

399 posts

134 months

Sunday 6th May 2018
quotequote all
I'm thinking of buying a lightly used car (value of ~£50-60k).

Due to my situation cash buying doesn't make sense so I'm looking at financing. I've been with Lloyds bank for over 10 yrs with a good credit history

The Lloyds car financing website says they will finance up to car values of £100k.

Anyone had experience of getting bank loans/finance for car values around 50k+? I would've thought such big unsecured loans were much harder to obtain than filling out an online form

Thanks

mike74

3,687 posts

131 months

Sunday 6th May 2018
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''Your situation'' being that you can't afford to buy it... but you'll give the usual BS that you're absolutely loaded and also happen to be an investment genius who can get returns which far outperform the interest paid on your car loan and your're definitely NOT a ten bob millionaire debt junkie?

CastroSays

182 posts

75 months

Sunday 6th May 2018
quotequote all
mike74 said:
''Your situation'' being that you can't afford to buy it... but you'll give the usual BS that you're absolutely loaded and also happen to be an investment genius who can get returns which far outperform the interest paid on your car loan and your're definitely NOT a ten bob millionaire debt junkie?
Always remember my dear old granny saying:
'If you don't have anything good to say, KEEP YOUR FKING HOLE SHUT......'

MKA29

Original Poster:

399 posts

134 months

Sunday 6th May 2018
quotequote all
mike74 said:
''Your situation'' being that you can't afford to buy it... but you'll give the usual BS that you're absolutely loaded and also happen to be an investment genius who can get returns which far outperform the interest paid on your car loan and your're definitely NOT a ten bob millionaire debt junkie?
I'm not loaded by any means.

However overpaying my mortgage and lumping all my remaining cash in my offset account will benefit me more in the long term, rather than tying it all up cash buying a car tbh... If you wanted to know the details


devnull

3,745 posts

156 months

Sunday 6th May 2018
quotequote all
OP, I’d advise you to sit down with Lloyds - as a customer myself, they never seem to advertise good rates online, even for existing customers but can usually do better rates face to face.

audidoody

8,595 posts

255 months

Sunday 6th May 2018
quotequote all
Why buy it even with a loan? Just lease a new one and chuck it back after three years by which time it will be out of warranty and you’ll be bored with it.

You’ll be losing £20k in depreciation over 36 months anyway.

Lucifer Morningstar

1,561 posts

142 months

Sunday 6th May 2018
quotequote all
mike74 said:
''Your situation'' being that you can't afford to buy it... but you'll give the usual BS that you're absolutely loaded and also happen to be an investment genius who can get returns which far outperform the interest paid on your car loan and your're definitely NOT a ten bob millionaire debt junkie?
Brutal...lol


audidoody said:
Why buy it even with a loan? Just lease a new one and chuck it back after three years by which time it will be out of warranty and you’ll be bored with it.

You’ll be losing £20k in depreciation over 36 months anyway.
Agreed.

Dolf Stoppard

1,318 posts

121 months

Sunday 6th May 2018
quotequote all
What's the car? As above, leasing might be cheaper.

MKA29

Original Poster:

399 posts

134 months

Sunday 6th May 2018
quotequote all
audidoody said:
Why buy it even with a loan? Just lease a new one and chuck it back after three years by which time it will be out of warranty and you’ll be bored with it.

You’ll be losing £20k in depreciation over 36 months anyway.
I plan to keep it for the foreseeable future, its done the bulk of its depreciation already

For those asking, it's a used BMW i8


MitchT

15,788 posts

208 months

Sunday 6th May 2018
quotequote all
At what age is the i8's battery likely to stop holding a decent charge and how much will it cost to replace? Could be a factor if you're keeping the car for longer than the foreseeable future as you'll have a car that's about to throw you a massive bill or is worth a whole lot less if you want to sell it with an imminent battery replacement looming for the next owner. I'm not generally a fan of leasing but for this new generation of cars which seem to have more in common with smartphones than they do with automobiles it seems quite logical.

MKA29

Original Poster:

399 posts

134 months

Sunday 6th May 2018
quotequote all
MitchT said:
At what age is the i8's battery likely to stop holding a decent charge and how much will it cost to replace? Could be a factor if you're keeping the car for longer than the foreseeable future as you'll have a car that's about to throw you a massive bill or is worth a whole lot less if you want to sell it with an imminent battery replacement looming for the next owner. I'm not generally a fan of leasing but for this new generation of cars which seem to have more in common with smartphones than they do with automobiles it seems quite logical.
That's a very good point, the maintenance and long term reliability of these cars are questionable at best! However I still would rather own it at the end of the day, and I fully expect this car to run up significant costs anyway, due to the type of car it is.

Anyone else had positive/negative experiences with bank car finance as opposed to manufacturer finance?


skeeterm5

3,328 posts

187 months

Sunday 6th May 2018
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You might be better off approaching a specialist high end car finance firm like Oracle who should be able to tailor to suit.

Camelot1971

2,698 posts

165 months

Monday 7th May 2018
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MKA29 said:
I plan to keep it for the foreseeable future, its done the bulk of its depreciation already

For those asking, it's a used BMW i8
I doubt it has. They aren't that rare and once a newer version comes out they will drop in price (like most other cars). That said, buy what you like and enjoy!

Donbot

3,892 posts

126 months

Monday 7th May 2018
quotequote all
MKA29 said:
However overpaying my mortgage and lumping all my remaining cash in my offset account will benefit me more in the long term, rather than tying it all up cash buying a car tbh... If you wanted to know the details
Are you sure about this? I'd be surprised if you can get a car loan at a lower rate than a mortgage.

MKA29

Original Poster:

399 posts

134 months

Monday 7th May 2018
quotequote all
Donbot said:
Are you sure about this? I'd be surprised if you can get a car loan at a lower rate than a mortgage.
The car loan is a higher rate than the mortgage by about 1.4-1.8%

To be honest this is the first time I'm considering finance so still trying to weigh up the (dis)/ advantages of buying the car this way

Manufacturer finance APR is 9%-11% which is outrageous.. while saving up a few more months and buying the i8 in cash would mean I cant offset and overpay my mortgage as much (which would save a considerable amount of ££££ in interest in the long term)

I don't expect to play the interest rates to 'make money' on the car, I dont think thats realistic. But definitely looks like spreading the cost with a low rate loan means I can make good use of the lump sum elsewhere during the term

Countdown

39,690 posts

195 months

Monday 7th May 2018
quotequote all
MKA29 said:
Donbot said:
Are you sure about this? I'd be surprised if you can get a car loan at a lower rate than a mortgage.
The car loan is a higher rate than the mortgage by about 1.4-1.8%
An unsecured loan for £40k is only 1.8% higher than your mortgage rate? That seems to be either an exorbitant mortgage rate or an extremely good value car loan.

Camelot1971

2,698 posts

165 months

Monday 7th May 2018
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First Direct do loans up to £50k unsecured at 3.0% APR.

audidoody

8,595 posts

255 months

Monday 7th May 2018
quotequote all
MKA29 said:
I plan to keep it for the foreseeable future, its done the bulk of its depreciation already

For those asking, it's a used BMW i8
An i8 you say? Even more reason to lease.

You're buying a computer with wheels.

bugmenot

129 posts

132 months

Monday 7th May 2018
quotequote all
Camelot1971 said:
First Direct do loans up to £50k unsecured at 3.0% APR.
The representative rate is 3% APR up to £30k. £30k+ is 6.7% APR.

Similarly with Lloyds, the current representative rate for personal loans is 3.9% APR up to £25k. 6.3% APR £25-35k and £35k+ is 7.3% APR.

Lloyds also do an online car finance product where the rep rate is 3.5% up to their max of £60k, though this is not unsecured.

MKA29

Original Poster:

399 posts

134 months

Monday 7th May 2018
quotequote all
bugmenot said:
Lloyds also do an online car finance product where the rep rate is 3.5% up to their max of £60k, though this is not unsecured.
Ah right, I believe this is what I'm looking at.


Countdown said:
An unsecured loan for £40k is only 1.8% higher than your mortgage rate? That seems to be either an exorbitant mortgage rate or an extremely good value car loan.
2.6% mortgage, 4-4.4% for bank loan at £60k

Though as the guy above correctly pointed out, it is secured against the purchased car

audidoody said:
An i8 you say? Even more reason to lease.

You're buying a computer with wheels.
biglaugh