Financing a used car

[ywouldi]

I hope this doesn't turn into a debate about the rights and wrongs of financing, but I want a new car. A good used example is a shade under £50k.

I have the cash to buy it, but would prefer to leave that invested and kept as a reserve. So I want to finance the car. The dealer offers various options at about 11.9% APR which is incredibly high it seems to me.

Are there recommended third party finance companies that would offer more attractive secure loans or PCP deals?

[LordGrover]

Oracle Finance is often mentioned... they offered me very good terms a couple of years ago, but I didn't proceed - nothing to do with the finance.

[Mr Ben]

In a similar position a couple of months back but not for a car… home improvements, same principal though.

Just used a generic loan comparison website which spat out a No of options (drop down menus showing usual reasons for loan… holiday/car/home improvement etc)

Got a loan with Admiral for an amount in the bracket for which meets your requirement at around 8%

Might be useful

[alscar]

Sounds like a VW / Porsche / Audi rate ?
Was in my Mustang dealer earlier today and their rate on used was 8.9% for instance.
Google Charles and Dean , Oracle , Pinnacle and see what else is there but also ask the dealer if they can then match ?

[harrymaisey]

( Awaits powerfully built company directors telling you to buy it with change from the back of your sofa )

I'ved used Darren Gibson to sort finance out on my last two cars and can't recommend highly enough, my current deal on my GT4 is 9.9% but is about 18 months old so im sure his rates are better now.

https://dg18son.com/

Works with you to discuss the best deal, i much like you use finance to keep the cash for investments and then pay off chunks at a time ontop of the monthlies when possible he recommended a company for this which i've ended up using twice now ( paragon bank ) that helps avoid loads of extra payment fees and such..

[Robertb]

There is some smoke and mirrors with the dealer finance as while the APR might be punchy, if you take their finance they might be more flexible on the car or PX price which will reduce the total cost.

[Wills2]

Do a combination of your cash and finance and get your money from the bank you can get £35k for 7.7% APR from Natwest as an example.

[RizzoTheRat]

Do you have a mortgage? Some will let you borrow extra on the existing, mortgage, and usually at a lower rate than standard bank loans. They might have a minimum term for the loan but you can usually overpay a proportion of the mortgage without additional fees

[MrAverage]

Lloyds Bank say they offer PCP at 6.9% and HP at 5.9% to customers, unsure if other banks offer this.

[Mr Ben]

In a similar position a couple of months back but not for a car… home improvements, same principal though.

Just used a generic loan comparison website which spat out a No of options (drop down menus showing usual reasons for loan… holiday/car/home improvement etc)

Got a loan with Admiral for an amount in the bracket for which meets your requirement at around 8%

Might be useful

[ninepoint2]

Magnitude and Forza are often more competitive than dealer/bank finance

[Baked_bean]

Charles & Dean Finance offer competitive rates and can finance a wide variety of cars.

[JimmyConwayNW]

Charles and Dean are at 8.3/8.4% at the moment.

Halifax / lloyds often 6.9% 7.9% APR but I think the residuals tend to be a bit lower with them so even though the APR is low the payment can be higher.

I've not seen cheaper than charles and dean recently.

[brillomaster]

RizzoTheRat said:

Do you have a mortgage? Some will let you borrow extra on the existing, mortgage, and usually at a lower rate than standard bank loans. They might have a minimum term for the loan but you can usually overpay a proportion of the mortgage without additional fees

This... but don't let them get wind of it being for a car. Additional money borrowed on a mortgage will have to be for home improvements.