Loan secured on a car

The_Boss

I want to buy a new car for £15k. However, the PCP finance it comes with is at 11.5%, which is obviously not good. They want to sell me the car so I'm sure they will reduce that to about 10%.

I wont be able to get a personal loan. Although I'm not self employed, many lenders class me as being so (as I work for 3 companies on an ongoing basis) and my income varies each month (by £200-£300).

So I'm looking at getting a loan that can be secured on the car. Does anybody know of any company that will give me a loan and have it secured on the car, or is that purely down to car sellers to organise?

Sainsburys Drive program has a lower rate, but I would be paying more for the car.
M&S do a plan, but that is just a buying plan and not secured on the car.

Raggamuffin_2

I can't help you with Loan information I am afraid. But I have been looking into purchasing a car based on a PCP scheme, and have found that Sainsbury's offer a typical 8.9& APR. Also the Bank of Scotland do one for 7.9%.

Not sure if this is helpful, apologies if it isn't, but it might give you another option.

The_Boss

Yeah, mentioned Sainsburys bank above, but they are quoting £3k more than another broker.

lucyhalligan

I've recently bought a £13000 car, finance was meant to be 10.5%, i managed to get that down to 5% over 5 years with the car company.

zeddy_2

Hi

Also you can do this through Marks and Spencers. You can get a normal unsecured loan or a loan that is secured on the car - it seems to work in a similar way to a loan you might get through the car company themselves. Their rates are very compeitive.

Good luck with the new car.

AMILLIONDOLLARS

Have I got this right? you earn between 200-300 a month (between three companies) and you want to buy a £15K car that will depreciate as soon as you drive it off the forecourt, why???? and over what period are you going to pay for the car and have you worked out the final amount it will cost you, at 10% interest I think we should be talking you out of committing such madness!!!!

The_Boss

Sorry, I meant my income varies by £200-£300 every month with differing levels of expenses - so one month my income + expenses will be around £2200, another around £1800. So its not like I earn a set annual salary, so my payslips all show differing amounts!

thegoon

i htink he means that his pay differs by 2-300 pounds a month

The_Boss

I've just called M&S and they confirmed that the car isnt secured on the loan, but also that I may not need payslips unless it is referred to an underwriter. I am extremely curious about this, but am not sure I want to waste a search on something that could haunt me.

peterg1965

Just a thought but something like a personal lease or contract hire may suit. Regardless, I would have thought that Hire Purchase for a car is actually secured on the vehicle itself, HP financial regulation would indicate that this is so. Have you tried Freewaycars? You can actually source your discounted car from any dealer and they will finance it at around 7.5% on a PCP. https://www.freewaycars.co.uk/ They are a HBOS company and very competitive.

Hope this helps.
Pete

The_Boss

peterg1965 wrote:

Just a thought but something like a personal lease or contract hire may suit. Regardless, I would have thought that Hire Purchase for a car is actually secured on the vehicle itself, HP financial regulation would indicate that this is so. Have you tried Freewaycars? You can actually source your discounted car from any dealer and they will finance it at around 7.5% on a PCP. https://www.freewaycars.co.uk/ They are a HBOS company and very competitive.

Hope this helps.
Pete

Thanks, it did help. Right down to the very last line when you said it was an HBOS company. The broker who can get me the cheapest price said they wont deal with them. So I think I'm going to keep looking because I'm not paying 10% interest on a car!