Anyone used a loan to buy a car?
Discussion
Hi,
Thinking about getting a C63 or an M3 in a few months time with a budget of max 40k. Been looking at a few PCP deals and i don't like the idea of paying 35/40k over 4 years and still the cars not yours.
How many people on here have bought a car using a loan?
AA for example give a loan up to 25K with 3.1% APR so the interest amount will only be £1,591 for borrowing 25K and paying it back over a 4 year period.
So if the car is priced at 40k, I will put down 15k of my own cash and borrow 25K. To me it seems a lot better than PCP or buying outright with cash. I have enough to buy a 40k car outright however I would like to use the cash for other investments.
What do you think guys? Is there a better way to buy a 40k car?
Thinking about getting a C63 or an M3 in a few months time with a budget of max 40k. Been looking at a few PCP deals and i don't like the idea of paying 35/40k over 4 years and still the cars not yours.
How many people on here have bought a car using a loan?
AA for example give a loan up to 25K with 3.1% APR so the interest amount will only be £1,591 for borrowing 25K and paying it back over a 4 year period.
So if the car is priced at 40k, I will put down 15k of my own cash and borrow 25K. To me it seems a lot better than PCP or buying outright with cash. I have enough to buy a 40k car outright however I would like to use the cash for other investments.
What do you think guys? Is there a better way to buy a 40k car?
Very cheap loans about at the moment, but the ones with the lowest rates are hard to get, even if you're credit score is ok you may still be declined by some.
PCP is much easier to get because the risks are lower for the lender.
You can still get a normal finance agreement (no end payment), but sales people don't often push them as the commission is less I think, or they assume you'll come back to them at the end of the term.
PCP is much easier to get because the risks are lower for the lender.
You can still get a normal finance agreement (no end payment), but sales people don't often push them as the commission is less I think, or they assume you'll come back to them at the end of the term.
Trevor555 said:
Very cheap loans about at the moment, but the ones with the lowest rates are hard to get, even if you're credit score is ok you may still be declined by some.
PCP is much easier to get because the risks are lower for the lender.
You can still get a normal finance agreement (no end payment), but sales people don't often push them as the commission is less I think, or they assume you'll come back to them at the end of the term.
How cheap are the interest rates at the moment?PCP is much easier to get because the risks are lower for the lender.
You can still get a normal finance agreement (no end payment), but sales people don't often push them as the commission is less I think, or they assume you'll come back to them at the end of the term.
I bought my last car using a Tesco loan, 3% APR. I did try and get a Lloyds loan first, but although the online rate was the same, when I actually applied it was 7%. I phoned up to complain, because the 3% offer appeared on my internet banking home page after I logged in, so it appeared to be a targetted offer. A bit naughty of them, but they didn't see it that way.
No problem at all with Tesco. Approved online, money in my bank account in 3 days.
No problem at all with Tesco. Approved online, money in my bank account in 3 days.
rauf786 said:
How cheap are the interest rates at the moment?
If you're asking re finance, all dealers have a different base rate, they get more commission the higher rate they charge over their base rate, so you def need to negotiate the rate. Dealers that offer zero percent means the finance costs are met by the manufacturer, or can be the case where the dealer has to pay the finance company to give you a zero percent deal. It's all up for negotiation by you.Personal loans from the likes of Tescos, Santander, are easily the cheapest rates for borrowing money if you can get accepted, not everyone can.
£30k with First Direct at 3.3%
costs about 1500 over 3 years.
I lease, but if you're thinking alternative loan methods, we used a personal loan over 7 years rather than a small mortgage.
Yes the percentage rate is a couple of points higher, but no £1500 "arrangement fees" or exit penalties.
costs about 1500 over 3 years.
I lease, but if you're thinking alternative loan methods, we used a personal loan over 7 years rather than a small mortgage.
Yes the percentage rate is a couple of points higher, but no £1500 "arrangement fees" or exit penalties.
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