APR on car loans
Discussion
MannyLon said:
Has anyone managed to get a good APR for a car loan recently?
I've been taking a look recently and the best that I could get was 5.9%
I thought every one bought their cars with lost of casino here and only poor wee buggers like me used finance I've been taking a look recently and the best that I could get was 5.9%
I got a cracking deal form Lombard Finance on 50K at something like 3.6% ( I don't understand APR and use flat rate instead which was about 1.9%)
I think it was £800 interest per year which I thought was very good. Only downside they will not pay for car privately on form dealer
Also worth a try is clydesdale who offered 4.0% APR or just over 2% flat.
If you need any contacts let me know happy to pass on the details of both
EvoSid said:
I thought every one bought their cars with lost of casino here and only poor wee buggers like me used finance
I got a cracking deal form Lombard Finance on 50K at something like 3.6% ( I don't understand APR and use flat rate instead which was about 1.9%)
I think it was £800 interest per year which I thought was very good. Only downside they will not pay for car privately on form dealer
Also worth a try is clydesdale who offered 4.0% APR or just over 2% flat.
If you need any contacts let me know happy to pass on the details of both
Thanks Sid, will take a look.I got a cracking deal form Lombard Finance on 50K at something like 3.6% ( I don't understand APR and use flat rate instead which was about 1.9%)
I think it was £800 interest per year which I thought was very good. Only downside they will not pay for car privately on form dealer
Also worth a try is clydesdale who offered 4.0% APR or just over 2% flat.
If you need any contacts let me know happy to pass on the details of both
EvoSid said:
I don't understand APR and use flat rate instead which was about 1.9%
Flat rate is the interest rate on the actual loan they are giving you for the PCP, HP etc. However, the broker/lender may charge additional fees on top of this (e.g. admin fees). So while the interest you pay on the loan itself may be 1.9%, if you include admin fees on top of the interest you are effectively paying a higher cost for the finance than the flat rate suggests. A loan with a low flat rate but high admin fees may therefore be higher APR/more expensive than a loan with a higher flat rate but no admin fees.APR is a much better way to compare the costs of any finance. Lenders are required to state the APR on their finance products by regulation, so it's simple for consumers to compare the true costs.
Hope that helps!
MannyLon said:
Thanks Sid, will take a look.
If you want any details I am happy to share you my loan details and contact details as girl was super helpful and quick just whats app me on 07770501905 if I can assist basically
£50k borrowed
1st payment 1366.26 ( which include £250 lion fee)
47 payments £1116.26
Total payable 53830.48
Apr 3.7%
Purchase fee at end £0.00
Seemed good to me and not sure if you can get cheaper
Flat rate is the interest on the initial sum.
So borrow at 2% flat on £50000 over say 60 months and you will pay £1000 a year, each year.
It is a 'flat' rate based on the initial sum, it is also (99 times out of 100) front loaded. So the £5000 interest is added on the front.
APR is where the interest is calculated, monthly, quarterly, or how ever often you are making repayments, on what is remaining.
And more often than not is not front loaded, much better if you usually settle early. (It is still front loaded though if in a company name and you chose a fixed interest rate rather than variable, so be careful there).
APR also has to include all costs such as set up fees etc. It is the true value of the loan with nothing hidden.
So borrow at 2% flat on £50000 over say 60 months and you will pay £1000 a year, each year.
It is a 'flat' rate based on the initial sum, it is also (99 times out of 100) front loaded. So the £5000 interest is added on the front.
APR is where the interest is calculated, monthly, quarterly, or how ever often you are making repayments, on what is remaining.
And more often than not is not front loaded, much better if you usually settle early. (It is still front loaded though if in a company name and you chose a fixed interest rate rather than variable, so be careful there).
APR also has to include all costs such as set up fees etc. It is the true value of the loan with nothing hidden.
Xfe said:
Flat rate is the interest rate on the actual loan they are giving you for the PCP, HP etc. However, the broker/lender may charge additional fees on top of this (e.g. admin fees). So while the interest you pay on the loan itself may be 1.9%, if you include admin fees on top of the interest you are effectively paying a higher cost for the finance than the flat rate suggests. A loan with a low flat rate but high admin fees may therefore be higher APR/more expensive than a loan with a higher flat rate but no admin fees.
APR is a much better way to compare the costs of any finance. Lenders are required to state the APR on their finance products by regulation, so it's simple for consumers to compare the true costs.
Hope that helps!
Cheers of taking the time to explain thatAPR is a much better way to compare the costs of any finance. Lenders are required to state the APR on their finance products by regulation, so it's simple for consumers to compare the true costs.
Hope that helps!
So how do you work it £50 loan at 3.7% apr over 4 years
I can do flat rate as it is pretty easy to get my head round . But when I apply the same method to Apr it does not work out for me?
EvoSid said:
Cheers of taking the time to explain that
So how do you work it £50 loan at 3.7% apr over 4 years
I can do flat rate as it is pretty easy to get my head round . But when I apply the same method to Apr it does not work out for me?
It is wrong though. So how do you work it £50 loan at 3.7% apr over 4 years
I can do flat rate as it is pretty easy to get my head round . But when I apply the same method to Apr it does not work out for me?
Here is an APR calculator...
http://www.pcpcal.co.uk
gizlaroc said:
Flat rate is the interest on the initial sum.
So borrow at 2% flat on £50000 over say 60 months and you will pay £1000 a year, each year.
It is a 'flat' rate based on the initial sum, it is also (99 times out of 100) front loaded. So the £5000 interest is added on the front.
APR is where the interest is calculated, monthly, quarterly, or how ever often you are making repayments, on what is remaining.
And more often than not is not front loaded, much better if you usually settle early. (It is still front loaded though if in a company name and you chose a fixed interest rate rather than variable, so be careful there).
APR also has to include all costs such as set up fees etc. It is the true value of the loan with nothing hidden.
Ah ok that makes so much sense now so that would explain why not so easy to work out as flat rate.So borrow at 2% flat on £50000 over say 60 months and you will pay £1000 a year, each year.
It is a 'flat' rate based on the initial sum, it is also (99 times out of 100) front loaded. So the £5000 interest is added on the front.
APR is where the interest is calculated, monthly, quarterly, or how ever often you are making repayments, on what is remaining.
And more often than not is not front loaded, much better if you usually settle early. (It is still front loaded though if in a company name and you chose a fixed interest rate rather than variable, so be careful there).
APR also has to include all costs such as set up fees etc. It is the true value of the loan with nothing hidden.
So I usually ask for flat rate and work it out like that and add on any fees
Thanks again for explaining as everyday is a school day on here
With Lombard make sure it is on a variable interest rate if you 'might' not see the full term out.
Otherwise you can get 6 months in and owe more than you borrowed if you want to get out of the car.
Not such an issue at 3.7%, but some who only get 6% apr or even 9%, could find that even after 12 months they still owe more than they initially borrowed on a fixed rate.
Lombard is a strange one as usually you have to be a company or a company director and the regulations are different for that compared with a standard personal loan, which front loading can't happen. Well it can, but they have to refund interest for the months you have not used.
Otherwise you can get 6 months in and owe more than you borrowed if you want to get out of the car.
Not such an issue at 3.7%, but some who only get 6% apr or even 9%, could find that even after 12 months they still owe more than they initially borrowed on a fixed rate.
Lombard is a strange one as usually you have to be a company or a company director and the regulations are different for that compared with a standard personal loan, which front loading can't happen. Well it can, but they have to refund interest for the months you have not used.
gizlaroc said:
With Lombard make sure it is on a variable interest rate if you 'might' not see the full term out.
Otherwise you can get 6 months in and owe more than you borrowed if you want to get out of the car.
Not such an issue at 3.7%, but some who only get 6% apr or even 9%, could find that even after 12 months they still owe more than they initially borrowed on a fixed rate.
Lombard is a strange one as usually you have to be a company or a company director and the regulations are different for that compared with a standard personal loan, which front loading can't happen. Well it can, but they have to refund interest for the months you have not used.
weave dealt duty them before for asset funding as a company and I am a company director so maybe that has helped me. Not sure , not really bothered as it is a cheap loan they quoted on fixed terms Otherwise you can get 6 months in and owe more than you borrowed if you want to get out of the car.
Not such an issue at 3.7%, but some who only get 6% apr or even 9%, could find that even after 12 months they still owe more than they initially borrowed on a fixed rate.
Lombard is a strange one as usually you have to be a company or a company director and the regulations are different for that compared with a standard personal loan, which front loading can't happen. Well it can, but they have to refund interest for the months you have not used.
But will check it out just in case thanks for the heads up
Make sure you speak to someone who genuinely knows.
My last loan with them they quoted me fixed rate, I questioned this and was assured it was not front loaded.
Then when lockdown happened and was not sure how my business was going to be effected I called for a settlement figure and it was obvious it was front loaded as I had paid them £4000 and still owed pretty much what I had borrowed months before.
I had to raise a complaint and to be fair they gave me a settlement figure based on what it would have been on a variable apr rate. so I didn't lose out, but was a pain to sort.
The variable rate will be something like 3.4% above the base rate, if the rate does go up you might pay an extra month or something at the end. If rates start shooting up refinance it with them, but they won't.
My last loan with them they quoted me fixed rate, I questioned this and was assured it was not front loaded.
Then when lockdown happened and was not sure how my business was going to be effected I called for a settlement figure and it was obvious it was front loaded as I had paid them £4000 and still owed pretty much what I had borrowed months before.
I had to raise a complaint and to be fair they gave me a settlement figure based on what it would have been on a variable apr rate. so I didn't lose out, but was a pain to sort.
The variable rate will be something like 3.4% above the base rate, if the rate does go up you might pay an extra month or something at the end. If rates start shooting up refinance it with them, but they won't.
I've used Lombard for business asset purchases on numerous occasions and find them very competitive. The one caveat is to make sure you get a variable rate loan where its impossible to give an accurate APR as the interest varies throughout the loan term due to fluctuating LIBOR.
On a variable Lombard loan the interest can't be front loaded as they don't know what the total interest will be at the beginning of the loan.
Another difference between a car loan and Lombard is that if you decide to throw some spare cash into the loan mid-term then the monthlies always stay the same and the saving is taken out at the end of the loan term.
On a variable Lombard loan the interest can't be front loaded as they don't know what the total interest will be at the beginning of the loan.
Another difference between a car loan and Lombard is that if you decide to throw some spare cash into the loan mid-term then the monthlies always stay the same and the saving is taken out at the end of the loan term.
EvoSid said:
If you want any details I am happy to share you my loan details and contact details as girl was super helpful and quick just whats app me on 07770501905 if I can assist
basically
£50k borrowed
1st payment 1366.26 ( which include £250 lion fee)
47 payments £1116.26
Total payable 53830.48
Apr 3.7%
Purchase fee at end £0.00
Seemed good to me and not sure if you can get cheaper
Thanks Sid, let me see what they say.basically
£50k borrowed
1st payment 1366.26 ( which include £250 lion fee)
47 payments £1116.26
Total payable 53830.48
Apr 3.7%
Purchase fee at end £0.00
Seemed good to me and not sure if you can get cheaper
Taffy66 said:
I've used Lombard for business asset purchases on numerous occasions and find them very competitive. The one caveat is to make sure you get a variable rate loan where its impossible to give an accurate APR as the interest varies throughout the loan term due to fluctuating LIBOR.
On a variable Lombard loan the interest can't be front loaded as they don't know what the total interest will be at the beginning of the loan.
Another difference between a car loan and Lombard is that if you decide to throw some spare cash into the loan mid-term then the monthlies always stay the same and the saving is taken out at the end of the loan term.
Ok sent Emil and got a very quick response as folowsOn a variable Lombard loan the interest can't be front loaded as they don't know what the total interest will be at the beginning of the loan.
Another difference between a car loan and Lombard is that if you decide to throw some spare cash into the loan mid-term then the monthlies always stay the same and the saving is taken out at the end of the loan term.
"Your monthly payments are capital and interest fixed.
There is a a penalty of 58 days interest to pay the agreement earl"
So as I read that if I want to settle early I just pay 35 days worth of interest in the capital plus the balance left
So to me it sounds good but what do you guys think
MannyLon said:
EvoSid said:
If you want any details I am happy to share you my loan details and contact details as girl was super helpful and quick just whats app me on 07770501905 if I can assist
basically
£50k borrowed
1st payment 1366.26 ( which include £250 lion fee)
47 payments £1116.26
Total payable 53830.48
Apr 3.7%
Purchase fee at end £0.00
Seemed good to me and not sure if you can get cheaper
Thanks Sid, let me see what they say.basically
£50k borrowed
1st payment 1366.26 ( which include £250 lion fee)
47 payments £1116.26
Total payable 53830.48
Apr 3.7%
Purchase fee at end £0.00
Seemed good to me and not sure if you can get cheaper
Only issue is if buying privately you have to pay the buyer the full cost of the car and then get an invoice and have proof of payment so they can pay you / refund you the loan amount.
Personally no issues with that as I have the cash to cover it but makes so much sense to borrow as it is silly cheap just now
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