Car loan process

The_Boss

I'm looking to buy a new car - a Renault Megane Coupe-Cabriolet.

I'm going to get it on dealer finance as I have hassle with loan companies as I work for 3 different companies though am not self employed.

Basically, I was wondering something about the process. The mrs applied for a finance through a dealer and wasnt asked for payslips. I've been into Audi today and they say they dont need payslips. I find this strange. But anyway, they say they want my bank account details.

Can they use these details to find out my last 3 months transactions? And what else do they do with my account details? I am wondering as my account has been into the overdraft recently due to having had to spend almost £5k of expenses in the past 2 months and only now are the repayments coming into me.

Annando

Be VERY careful. We were going to go for a dealer (Toyota) finance. No payslips necessary etc... I thought it seemed all too easy. Then the sales rep said the loan was at a "flat rate" of 6%, I inquired what a "flat rate" was and he replied it was the actual rate you paid, because different people and banks calculated the APR in different ways, so a "flat rate" was easier to understand. I found that fishy to say the least, plus he needed a decision that same afternoon, before 6pm!
The amount we were going to finance over 5 years was £6500, the monthly repayments they quoted were £144.70. I got back home and checked moneysupermarket, I put in a higher amount (£8000) to get a better APR (Got 5.5% and 6.1% - Close enough to the "Flat Rate")... I was amazed to find out that my repayments would only be £154.00 over the same period, although I was borrowing more money! I still don't see what the "Flat Rate" is though and how they got it!

So my advice would be to check the APRs and check other options, credit cards balance transfers, having the loan in your wife's name...

Rafter

The Boss - they probably want bank details to confirm your identity when they do a credit check. The bank won't disclose transaction details without your permission.

Annando - Flat rate is a con used by the car companies to make you feel like you are getting a good deal.

The basically say if you are borrowing £5000 over 3 years then you pay 6% of £5000 for each year of the loan. This works out at about 12% APR because you are actually paying off your loan as you go.

ALWAYS CHECK THE APR!!!!

R.