finance company recomendation

[A1]

Hi Guys
Any companies you would like to recommend for financing my new purchase?

What sort of APR people paying?

Thanks

[Shmee]

Lombard

Somewhere just under 6%

Absolutely brilliant on every front

[Dr G]

I can vouch for Oracle, Katey is a pleasure to deal with.

[Shmee]

Dr G said:

I can vouch for Oracle, Katey is a pleasure to deal with.

Oracle offered me 11.9% and tried to pretend that was a "good deal".

[Dr G]

That's pretty typical really; 6% is extremely cheap and unusual for something that isn't a dealer/manufacturer special offer (not even personal loans are that cheap right now).

Fair play!

[polar8]

Remember, Oracle, Mann Island Financial or whoever are just the brokers... It'll probably end up being financed with ING or Lombard. If you're High Net Worth you can get 5% or so APR with ING. The broker won't make too much difference.... Oracle seem to have clout with ING in the finer details though
Read the small print. You'll get clobbered if you sell before end of agreement term

[polar8]

Remember, Oracle, Mann Island Financial or whoever are just the brokers... It'll probably end up being financed with ING or Lombard. If you're High Net Worth you can get 5% or so APR with ING. The broker won't make too much difference.... Oracle seem to have clout with ING in the finer details though
Read the small print. You'll get clobbered if you sell before end of agreement term

[Shmee]

polar8 said:

Read the small print. You'll get clobbered if you sell before end of agreement term

Why is that, what do Oracle/ING do differently from others?

[polar8]

Shmee said:

Why is that, what do Oracle/ING do differently from others?

New terms which require 5% of balance on early settlement sliding down to 1% toward end of term. It used to be just one months interest. If you have a large balance and sell after 11 months you'll have a chunky penalty.

[Shmee]

polar8 said:

Shmee said:

Why is that, what do Oracle/ING do differently from others?

New terms which require 5% of balance on early settlement sliding down to 1% toward end of term. It used to be just one months interest. If you have a large balance and sell after 11 months you'll have a chunky penalty.

Wow, good to know. Glad I went with Lombard as when asked they insisted there were no penalties for early cancellation.

[A1]

Thanks for the info guys

[bad company]

polar8 said:

If you're High Net Worth you can get 5% or so APR with ING.

Can't understand why High New Worth people would need finance?

[elms]

bad company said:

Can't understand why High New Worth people would need finance?

Its not necessarily 'needing' its wanting to finance a purchase

[JamieBeeston]

bad company said:

polar8 said:

If you're High Net Worth you can get 5% or so APR with ING.

Can't understand why High New Worth people would need finance?

Cash is very expensive to keep, it literally loses money every month you hold it, so any significant sums wont just be sat in a savings account, they will be invested, most likely earning more than the APR you'll get on the loan.

[bad company]

elms said:

Its not necessarily 'needing' its wanting to finance a purchase

Yes but surely it is cheaper to use your own money? I guess some of these guys have their £millions tied up in shares etc.

[polar8]

bad company said:

Yes but surely it is cheaper to use your own money? I guess some of these guys have their £millions tied up in shares etc.

If you can get a Ferrari for 100k loans to you at 6% secured against the car, you can use your 100k sat in the bank to invest and hopefully make more than the 6% cost of finance. Then you are in a Ferrari and you are earning from your investments (providing they appreciate more than 6% each year)

[Sarnie]

bad company said:

Can't understand why High New Worth people would need finance?

Just because someone earns £150k+ a year doesn't mean they have £150k to tie up in a car. They may however have a spare £1500 disposeable income per month that allows them to get into the car and not tie up a stack of their own cash.

If he saved £1500 a month he could buy his car outright instead, but that will take 100 months, who wants to do that!?!?

[Dino550]

I'm with Lombard, arranged via Oracle. The rate is base rate plus 3% if memory serves me right...

I'm happy with that.

[Xeno]

Haha, I think mine is something crazy like 20%. Oh well.

[kryten22uk]

bad company said:

Can't understand why High New Worth people would need finance?

HNW has an odd definition.

If you have £600k in cash but a 100% mortgage on a £500k house then you are HNW. However, if you pay off that mortgage, and have "only" £100k in cash, but a mortgage-free £500k house, then you're poor, and not HNW.

Similarly HNW fails for people who own a business. For example if your company makes £500k profit per year, but you only draw out enough to meet ur needs (say £100k) leaving the rest in the business, then again you are not a HNW person.

Edited by kryten22uk on Wednesday 9th February 19:02