Are any of local banks in N.I. doing competive loan rates? GAP INSURANCE?

missma

Hi,

Have just put a deposit done on a car and am looking to borrow £6500 plus possibly Gap insurance of £350. Over three years. Does anyone know where is doing good rates, have good credit history. Is money supermarket best place to look. Is GAP insurance worth it and is it best to buy from dealer. Anyone any experience.

Thanks

missma

Just realised I can't spell !!!!!!!!!!!!!:p

mofopants

GAP insurance is a good buy as it covers you in the event of an accident, although £350 is a bit much for it. Dealers can get it for in the region of 100 -150 so haggle with them on that a bit. Failing that i am sure you can get it cheaper through your car insurance broker, or online. I used to sell cars and sell GAP insurance so i know how much of a mark up there is on it!

I'm not much help on finance rates, but i know that we visited a honda dealership and they were giving us something like a 3% flat rate to get our business, so it might be worth haggling with the dealer. Some dealers will do you a better deal on the purchase price too if they will make something out of the deal by taking their finance.

Hope this helps!

missma

Thanks mofo they told us ut was that price cause the car is 12000 and that it was £400 for GAP but would do it for £350 to cover the 3 years. Do u still reckon thats dear. They were offering us loan at 6% but had admin fee £130 ish. Not wanting final payment or ought.

mofopants

No I still think the £350 is still a bit steep (where i worked had one price for the GAP and they'd charge you more if you were buying a new car if they thought they would get away with it!) - might be worth calling a few insurance brokers and see what you can get there.

If it was 6% from a main dealership they can do a lot better than that for you!

Good luck with the finance and the new car

Golden_Anemone

missma wrote: »

Thanks mofo they told us ut was that price cause the car is 12000 and that it was £400 for GAP but would do it for £350 to cover the 3 years. Do u still reckon thats dear. They were offering us loan at 6% but had admin fee £130 ish. Not wanting final payment or ought.

Be careful too that the rate you are quoted for the loan is the APR. I bought new car recently and was told finance was at 4.5% but when proper quote was done the APR was 10.4%. I'm not saying they'd deliberately mislead you but...

thetope

I got 3yrs gap last year for £125 from surf and protect. It was dearer on initial quote but they did a price match with click4gap. I went with them over click4gap as they were underwritten by axa. Much cheaper than dealer quote of £300. Worth it if you're getting a new car that will depreciate faster than you repay the finance. Oh, also, look for 'return to invoice' gap - that will cover the difference between your insurance pay out and the price you paid originally, it's better than the gap insurance that only pays the difference on your outstanding finance

mofopants

Golden_Anemone wrote: »

Be careful too that the rate you are quoted for the loan is the APR. I bought new car recently and was told finance was at 4.5% but when proper quote was done the APR was 10.4%. I'm not saying they'd deliberately mislead you but...

It was 4.5 flat rate - most people tend to go with this when looking at HP.

missma

Hi all thanks for the replies. Yea think I will shop around for both not sure if I will take GAP or not. I saw a few for 8.8% APR on money supermarket not sure I would get that rater if I phones up though.

ta very much

36square

Missma
No guarantee that you'll fiind the best deal on moneysupermarket. They promote products that pay commission. www.moneyfacts.co.uk is genuinely independent. It quotes deals at well under 8.8%. Worth taking a look.

PS Moneysupermarket is becoming more suspect as fewer and fewer banks are so keen to lend that they are willing to pay commission.

missma

Thanks will take a look i kinda was bit suss about it