Robsters

About to go ahead with a car but i been pushing and pushing for interest rate at 10.9% to be lower a couple of times but they insist they can not do any better deal, infact done no deal for me since i walked in through the door. should i be wary of this or is it true that price and interest rates are usually fixed.

mk1turboestate

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charlie luciano

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Robsters

its true i tried loans and interest was 15% at best just wondering if dealers can give a better interest rate or just lying to me when they say they cant

mk1turboestate

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mk1turboestate

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Robsters

the car is £9k dealer is slapping on 10.9% interest with barclays

stevieturbo

when dealers sell finance...the higher they sell, the more commission they get. No doubt there is a bottom line too, but 10.9% sounds pretty high !

bigdel

You won't be borrowing the money from the dealer but from a finance company. It's unlikely the dealer will have any control over the finance package on offer.
as said before, shop around for a better loan deal from a bank or other financial institution

stevieturbo

They ALWAYS have control over the rates of finance they can offer, down to a bottom rate.

And of course they'll always try and get as much from the customer as they can.

Robsters

yeah cause another branch drop to 7% on ST line fiesta but i didnt go for it as milage was just to high soon i come back later on another fiesta like oh we cant do it on this one, also a different branch as well but i going to ring in the morning and say sorry I wont be taking the car unless they can drop it, prob lose my £100 deposit now though if i do walk off oh well better then losing 1000s to a bad deal, NO DEAL BETTER THEN A BAD DEAL right

stevieturbo

Would a loan not be easier ? What was the deposit based on ? you getting funds elsewhere or them supplying credit ?

Robsters

I tried the loan route i cant seem to get a sensible interest rate from anywhere, if i do they want all the money back in 5 yrs so makes the monthly repayments rather high. this car is £9k offerd me a PCP deal no deposit £173.88 a month or 181 a month with the £350 gap insurance inc over the next 4yrs then £3300 to buy the car at the end. but the interest is 10.9% so by the end of it all id of paid £11.600 for a fiesta and it be 6yrs old in 4yrs as its 2yrs old car. i going to ring in the morning and ask for a lower interest rate if they dont do it i think i just walk off :/ just a shame i put £100 deposit down but i was very certain on that car last week but after speaking to my wise old dad he said car and price all fine but the interest rate is def taking the piss he feels

JayCC

Leave well alone. How come you can't get a low interest loan? Age? Work history? Something might be affecting it.

luke19790_3

cossynut2

The PCP deal is one big rip off, avoid that at all costs!! As others have said shop around for your own loan deal which you will get at a much lower interest rate and then you will have the upper hand when you are at a dealers, not being pushed into their finance plans.

costina

iTrader: (1)

Only for advance customers.

If you don't have a lot of credit history you won't get a better deal.

Robsters

thats the problem i dont have much credit history, i tried tesco before and i think lowest rate they gave me was 10% which was bit lower but not by much , i sent email to them this morning that unless they give me a lower interest rate i won't be picking up the car today, so sick of this car situation

Robsters

ok got back to me , all the offered was paint protection which is normally £399 for free hmmm :/

RichieST

iTrader: (2)

If you can't afford it and you are desperate for a car, why do you need an expensive almost new st-line. A 3 or 4 year old more basic model should be half the price. Or get yourself a 3 or 4 grand loan and buy a small Toyota or mazda, should be fairly bomb proof.

costina

iTrader: (1)

I'm 46 and don't do new cars at all total waste of money.
I drive a 53 plate ST170 cheap as chips and I don't have to worry if it gets damaged in car parks.

Most new cars are not owned just leased so the driver don't really give a shit about damage etc.
Worst of all are Merc drivers follow by BMW drivers.

Look at me I drive a new car but it's not mine it's all about status........

Robsters

yeah how i feel going to be a big chunk of money every month for 4yrs but at same time i got a kid just thinking should really have more modern safer car not old rusting 2001 fiesta, only thing attracted us to this deal is not having to use our savings to go spend 3-4k on a 2nd hand car and pay every month over time and one day own it prob keep it for long as we can after that , yeah noticed that people quite careless in carparks now

Robsters

it wasnt an ST line it was eco boost car 1.0 litre 100ps, so def bit cheaper then st line almost 3k cheaper but still

costina

iTrader: (1)

When my first Daughter was born in was using a saff cossie as a daily

No airbags no side protection etc.

Caddyshack

Ignore the APR and look at the actual interest rate.

Steve Hough is a broker and has always beaten any dealer for me 07711 487029, just say Toby said to call and he will look after you.

STEVEST24

That does seem a high APR, but maybe credit market has changed, my sister got a used Peugeot last year from main dealer and got 0%, but it depended on sizeable deposit (over 50%, I think) and credit check, but this year same dealer only been offering 6.9%. As she got 0% offer she took it, otherwise she'd of paid in full, but she been saving hard as she knew her very old car was on borrowed time.

STeve

iTrader: (11)

only one way to treat loans, if you aint got enough money in the bank buy something you can afford, avoids any issues

Caddyshack

The 0% finance is a clever marketing trick where the manufacturer actually foots the interest bill to get the cars sold IIRC

Robsters

they inc extra years warranty instead so be 2yrs not 1yr now, there no deposit on this car, given my old car on borrowed time also and we live remote we do need something reliable and me and my wife are def not keen to use big chunk of savings to buy an old wreck, also it's a diffrent era on the roads now a lot of idiots about now so basically be looking at £174 a month got a good quote with admiral to insurance it at £40 a month when everywhere else was £70 a month, if we can save we could prob pay car off in 3yrs and own it then keep it for as long as possible...hopefully

JayCC

I disagree with that. I've got plenty of stuff using finance, granted nothing huge, but I have taken plenty of low % schemes out, as well as using a credit card, all with the intent of bolstering my credit history. Which worked an absolute treat.

I know someone who is 30 odd years old and was denied a pricey phone contract because they had no credit history due to buying everything in full.

It's a brilliant system if you know where the line is between borrowing to help, and borrowing because it's unaffordable.

Thrush

iTrader: (1)

Absolute rubbish. It might not be the car you want and I'm not recommending it as such, just using it as an example, but 6 years ago I paid £2500 for my IS200. It was 10 years old then and far from an "old wreck". There's hundreds of models out there that are far from old wrecks for way less than the £3-£4k you mention. Again as an example, a good IS200 now will cost you a grand, possibly less. A friend of mine bout a 2002 Golf TDi for £200 and there's nothing wrong with it. You don't have to buy a new or almost-new car to not get a wreck.

xr_craig

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STeve

iTrader: (11)

if you dont borrow money you would not give 2 hoots about credit history, living beyond ones means is road to ruin as way too many want to keep up with the jones by having latest car or flashy mods, no cash in pocket no buy = simples

RichieST

iTrader: (2)

I disagree too, I use credit cards to buy big stuff, have had a couple of small loans, as said they work in your favour. I also know someone who had never had any credit, not even a mobile phone contract. He couldn't get a mortgage when he wanted it. He was told to go away, get a credit card, build up a good credit rating then apply again for a mortgage.



In the ops situation, the interest you will be paying on a new car will be more than the interest you are receiving on your savings. So use your savings to buy a good used car, then put the 140 odd quid that you were going to be paying per month back into your savings. In 18 months you will have your savings back again and won't owe anyone anything.

Caddyshack

I would not have been able to buy much of a house without Finance. Often leverage with finance is a very good thing.

STEVEST24

Agree with comments about credit working for you, that was my thinking when we were offered 0% finance on hire purchase on a car last year, we normally save up and buy type, we could paid outright for the car, but this way keep some savings, ok earning very little and improve credit history.

Also, agree plenty of very good cars out there, when we were looking we set ourselves a budget, stick to it, we wanted a certain type of car, spec, even colour , nothing fancy, but not basic spec, and fairly local, preferred main dealer as wanted 1 year warranty, we found exactly what we wanted eventually, ok paid bit more at a main dealer, but we had some warranty issues, which were sorted without any problems, so it worth the extra.

St3V3_C

Tell them to Feck off purely based on this bull sh1t lol.

stevieturbo

Sadly in this day and age, credit history ( or lack of ) affects everyone.

I've seen my parents unable to get a mobile phone contract in the past because their credit history is lacking !! Because they've never borrowed money for about 30 years, nor used credit cards !

nick46

I've never had a credit card and only had about 3 loans in my life, and I'm 39. On the odd occasion I do need to borrow money I never seem to have a problem and always get a good rate. Absolutely no idea what my credit rating is - never checked or felt the need to check. If I need to borrow money, they'll either let me have it or they won't.

STeve

iTrader: (11)

well perhaps Im old skool then as never had a credit card nor wanted one was always brought up with if you dont have the money you dont get, and my parents sayings "never a borrower or a lender be" lol, no debts to any sod maybe a generation thing as Im over 50