Lloyds Bank Car Loan

[MKA29]

I'm thinking of buying a lightly used car (value of ~£50-60k).

Due to my situation cash buying doesn't make sense so I'm looking at financing. I've been with Lloyds bank for over 10 yrs with a good credit history

The Lloyds car financing website says they will finance up to car values of £100k.

Anyone had experience of getting bank loans/finance for car values around 50k+? I would've thought such big unsecured loans were much harder to obtain than filling out an online form

Thanks

[MKA29]

mike74 said:

''Your situation'' being that you can't afford to buy it... but you'll give the usual BS that you're absolutely loaded and also happen to be an investment genius who can get returns which far outperform the interest paid on your car loan and your're definitely NOT a ten bob millionaire debt junkie?

I'm not loaded by any means.

However overpaying my mortgage and lumping all my remaining cash in my offset account will benefit me more in the long term, rather than tying it all up cash buying a car tbh... If you wanted to know the details

[MKA29]

audidoody said:

Why buy it even with a loan? Just lease a new one and chuck it back after three years by which time it will be out of warranty and you’ll be bored with it.

You’ll be losing £20k in depreciation over 36 months anyway.

I plan to keep it for the foreseeable future, its done the bulk of its depreciation already

For those asking, it's a used BMW i8

[MKA29]

MitchT said:

At what age is the i8's battery likely to stop holding a decent charge and how much will it cost to replace? Could be a factor if you're keeping the car for longer than the foreseeable future as you'll have a car that's about to throw you a massive bill or is worth a whole lot less if you want to sell it with an imminent battery replacement looming for the next owner. I'm not generally a fan of leasing but for this new generation of cars which seem to have more in common with smartphones than they do with automobiles it seems quite logical.

That's a very good point, the maintenance and long term reliability of these cars are questionable at best! However I still would rather own it at the end of the day, and I fully expect this car to run up significant costs anyway, due to the type of car it is.

Anyone else had positive/negative experiences with bank car finance as opposed to manufacturer finance?

[MKA29]

Donbot said:

Are you sure about this? I'd be surprised if you can get a car loan at a lower rate than a mortgage.

The car loan is a higher rate than the mortgage by about 1.4-1.8%

To be honest this is the first time I'm considering finance so still trying to weigh up the (dis)/ advantages of buying the car this way

Manufacturer finance APR is 9%-11% which is outrageous.. while saving up a few more months and buying the i8 in cash would mean I cant offset and overpay my mortgage as much (which would save a considerable amount of ££££ in interest in the long term)

I don't expect to play the interest rates to 'make money' on the car, I dont think thats realistic. But definitely looks like spreading the cost with a low rate loan means I can make good use of the lump sum elsewhere during the term

[MKA29]

bugmenot said:

Lloyds also do an online car finance product where the rep rate is 3.5% up to their max of £60k, though this is not unsecured.

Ah right, I believe this is what I'm looking at.

Countdown said:

An unsecured loan for £40k is only 1.8% higher than your mortgage rate? That seems to be either an exorbitant mortgage rate or an extremely good value car loan.

2.6% mortgage, 4-4.4% for bank loan at £60k

Though as the guy above correctly pointed out, it is secured against the purchased car

audidoody said:

An i8 you say? Even more reason to lease.

You're buying a computer with wheels.