make money on this car finance deal?

jonnystuart

Hi guys,

I'm new to this so sorry if a similar question has been answered.

I am currently looking for a new car. The car I am wanting is £10,000 and I have £4000 to put towards it.

I have a very nice friend in the car trade who has offered me a finance deal at mates rates at 5% flat rate over 3 years which is the best I have seen.

So it works out at £198 a month and the interest is £930 over the 3 years that's all I have to pay. I was just wondering if there was anyway way I could make the £310 a year in interest?

Would it be worth borrowing more and put some of the money I have in savings? or borrowing the £6000 from somewhere else?

I'm no expert so if someone could please advise me.

cheers

CLAPTON

5% flat rate is about 10% APR... not cheap at all

there is no way you will get much more than 3% in a savings account

jonnystuart

Thanks for the quick reply...

I'm not too sure what you mean it's about 10% APR? all I know is that if I borrow £6200 over 3 years I pay £930 interest and £198 a month.

What is the best option to borrow £6000?

CLAPTON

I mean that if you get a loan for 6000 over three years at an APR of 10% then you will pay approximately 198 per month...

personally I think paying £930 in interest is a lot of my money as I can think of lots of things to do with this.

best option is saving up the money and pay no interest

next best option is getting a loan at a lower APR than 10% because then you will pay less than 930 in interest.

ILW

jonnystuart wrote: »

Hi guys,

I'm new to this so sorry if a similar question has been answered.

I am currently looking for a new car. The car I am wanting is £10,000 and I have £4000 to put towards it.

I have a very nice friend in the car trade who has offered me a finance deal at mates rates at 5% flat rate over 3 years which is the best I have seen.

So it works out at £198 a month and the interest is £930 over the 3 years that's all I have to pay. I was just wondering if there was anyway way I could make the £310 a year in interest?

Would it be worth borrowing more and put some of the money I have in savings? or borrowing the £6000 from somewhere else?

I'm no expert so if someone could please advise me.

cheers

Don't sound much of a mate to me, are you sure he's not stitching you up on the price of the car as well?

jonnystuart

right ok.

so is there a way i could borrow the £6000 cheap?

the loan could be a business loan as the car is for my business.

Eric_Pisch

jonnystuart wrote: »

right ok.

so is there a way i could borrow the £6000 cheap?

the loan could be a business loan as the car is for my business.

0% credit card will be cheapest but you will need to have a decent credit rating and either pay it off before the deal ends or transfer over the remainder to a new 0% card

http://www.moneysavingexpert.com/cards/best-0-credit-cards#zero

or the virgin card gives you 16 Months @ 0% with a 3% transfer fee

or the MSE guide says 8.8% avg for a 6k loan

http://www.moneysavingexpert.com/loans/cheap-personal-loans#noinsurance

I would talk to your bank and see what they offer, don't forget these loans are unsecured and I suspect your "mates rate" 10% deal is secured as HP ...

I would talk to your bank.

eschaton

jonnystuart wrote: »

Hi guys,

I'm new to this so sorry if a similar question has been answered.

I am currently looking for a new car. The car I am wanting is £10,000 and I have £4000 to put towards it.

I have a very nice friend in the car trade who has offered me a finance deal at mates rates at 5% flat rate over 3 years which is the best I have seen.

So it works out at £198 a month and the interest is £930 over the 3 years that's all I have to pay. I was just wondering if there was anyway way I could make the £310 a year in interest?

Would it be worth borrowing more and put some of the money I have in savings? or borrowing the £6000 from somewhere else?

I'm no expert so if someone could please advise me.

cheers

As well as not being an expert you are also gullible for thinking this 'mate' is giving you a good deal. Mates rates - heard it all now lol.

Save up and buy the car cash.