Car Finance
Author
Discussion

staceyb

Original Poster:

7,107 posts

254 months

Monday 16th January 2006
quotequote all
Any suggestions on who I should look at for a £6000 car loan the people I'm getting car off uses Black Horse and their apr is 10.2% any help much appreciated.

Harry Flashman

21,931 posts

272 months

Monday 16th January 2006
quotequote all
Argh! Why do people do this?

Get a low cost internet bank loan - someone like cahoot at 6% or so.

Car financing - why??

vixpy1

42,699 posts

294 months

Monday 16th January 2006
quotequote all
10.2%

I will loan it to you for 4%, but there are special conditions

bga

8,134 posts

281 months

Monday 16th January 2006
quotequote all
I was looking for a loan a few months back & Cahoot, Northern Rock & the AA looked pretty competitive

groucho

12,134 posts

276 months

Monday 16th January 2006
quotequote all
vixpy1 said:
10.2%

I will loan it to you for 4%, but there are special conditions


'it' is the word she should be worried about.

Plotloss

67,280 posts

300 months

Monday 16th January 2006
quotequote all
First off, dealer finance is negotiable, 10.2%APR is an opening gambit.

Find the cheapest high street loan go back to the dealer and tell them you will buy the finance off them if they will match the APR.

Its in the dealers interest to sell you the finance, be aware though that the APR that they can physically go down to will depending on how much commision they are getting and their other revenue streams...

bga

8,134 posts

281 months

Monday 16th January 2006
quotequote all
Harry Flashman said:


Car financing - why??


Same reason that I got a loan for my wedding - to have now what I would otherwise not be able to afford or save for a long time for.

I couldn't afford a lump sum of £10k for example, however I can afford to pay it over 3 years.

Borrowing on a depreciating asset is another matter, but surely down to personal preference & ones priorities.

staceyb

Original Poster:

7,107 posts

254 months

Monday 16th January 2006
quotequote all
Lombard direct have offered me 6.2 and thats the best so far.

staceyb

Original Poster:

7,107 posts

254 months

Monday 16th January 2006
quotequote all
loan amount: £6000.00
loan term in months: 60
monthly repayment: £115.03
total amount paid to cahoot: £6901.80

that aint too bad at all

Plotloss

67,280 posts

300 months

Monday 16th January 2006
quotequote all
Now all you need do is get £900 off the price of the car and you have a deal...

Kentish

15,169 posts

264 months

Monday 16th January 2006
quotequote all
bga said:

Borrowing on a depreciating asset is another matter, but surely down to personal preference & ones priorities.


I wouldn't dare call my wife that

lazyitus

19,931 posts

296 months

Monday 16th January 2006
quotequote all
staceyb said:
Any suggestions on who I should look at for a £6000 car loan the people I'm getting car off uses Black Horse and their apr is 10.2% any help much appreciated.


Stacey, drop me an e-mail so I can give you some info.

bga

8,134 posts

281 months

Monday 16th January 2006
quotequote all
Kentish said:
bga said:

Borrowing on a depreciating asset is another matter, but surely down to personal preference & ones priorities.


I wouldn't dare call my wife that


vetteheadracer

8,273 posts

283 months

Monday 16th January 2006
quotequote all
Lombard Direct do loans at about 6.4%

pm99

244 posts

289 months

Monday 16th January 2006
quotequote all
WARNING - whoever you gett he loan off...check how they calculate their interest.

Some will add on interest daily (good).....some may add interest on yearly in advance...some may even put all the interest on at the front (eg finance companies).

Get a laon for 3 year...make payments for 18 months....then try and pay off the loan and find out you ow the same as you borrowed! It's possible.

ewenm

28,506 posts

275 months

Monday 16th January 2006
quotequote all
bga said:
Harry Flashman said:


Car financing - why??


Same reason that I got a loan for my wedding - to have now what I would otherwise not be able to afford or save for a long time for.

I couldn't afford a lump sum of £10k for example, however I can afford to pay it over 3 years.

Borrowing on a depreciating asset is another matter, but surely down to personal preference & ones priorities.


I think the point was that a loan from a high street/internet bank will almost always be cheaper than the car finance scheme, so if you need to borrow money for a purchase, borrow it from your a bank.

TheDarkSide

640 posts

254 months

Monday 16th January 2006
quotequote all
When shopping for finance, remember there are 14 different ways of calculating an APR - all of which are legal under the Consumer Credit Act.

Remember to compare monthly repayment, total payable and any charges for early settlement.

And, just to confuse matters further, when getting quotes by phone or online the lender will quote a 'typical' figure. When you put your application through the payments can (and usuall will) be different from that quoted initially.

staceyb

Original Poster:

7,107 posts

254 months

Monday 16th January 2006
quotequote all
I'm borrowing £6000 over 4 years with Cahoot will be paying £139.00 per month back should be getting a pay rise soon (hopefully) so am going to try and pay it off early as poss. Just got a 04reg fiesta lx its only 12000 miles fsh still in warrenty and has all the bells and whistles i need (cd a/c elec everything and power steering ) will only be as a run around and have the mazda to play with at weekends.

pm99

244 posts

289 months

Monday 16th January 2006
quotequote all
Did you check how the interest was added and early repayment penalties?

If you want to pay back early make sure the interest is added only daily or at worse monthly.
Not yearly or multiples of.

For reasons tated before.

staceyb

Original Poster:

7,107 posts

254 months

Monday 16th January 2006
quotequote all
Its added on daily on none of the obvious small print states an early repayment fee.