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car finance wranglings...
mwebber_82
Posts: 1 Newbie
in Loans
hi all,
i am in the process of purchasing a new toyota. when i was first looking around a couple of months back, my local dealer said they could do finance at 5%.
I ended going to another dealer who could do a better price on the car and who said that as a flagship dealer, they were sure to be able to match the offer we had been given elsewhere. 2months down the line and a week before collection, finance still isn't sorted. the best offer we have had is 10%. when i queeried this i was told the offer of 5% we recieved elsewhere will have been 5% flat and that on that measure, my current deal is closer to 3.6% so i should be happy. is this the case?!
the shakey explanation he gave me was 'flat APR' refers to the amount we pay year on year as opposed to the global percentage rate... does this sound like a likely explanation or is the threat of taking my deposit to another dealer causing him to sweat a little?
on top of this, the main reason i wanted the finance was because it comes with free insurance for 1 year and free servicing for 3 years. we were advised that we could leave the scheme after 3 months having taken advantage of the benefits without having to pay any penalties. is this likely to be the case? they seem unable to give exact figures as to what we would actually end up paying after the initial 3 months.
finally, what would the reason be to stay on the finance at 10% if a highstreet bank offers closer to 6% (putting aside the free insurance and servicing for now)?
thanks in advance!!
matt
i am in the process of purchasing a new toyota. when i was first looking around a couple of months back, my local dealer said they could do finance at 5%.
I ended going to another dealer who could do a better price on the car and who said that as a flagship dealer, they were sure to be able to match the offer we had been given elsewhere. 2months down the line and a week before collection, finance still isn't sorted. the best offer we have had is 10%. when i queeried this i was told the offer of 5% we recieved elsewhere will have been 5% flat and that on that measure, my current deal is closer to 3.6% so i should be happy. is this the case?!
the shakey explanation he gave me was 'flat APR' refers to the amount we pay year on year as opposed to the global percentage rate... does this sound like a likely explanation or is the threat of taking my deposit to another dealer causing him to sweat a little?
on top of this, the main reason i wanted the finance was because it comes with free insurance for 1 year and free servicing for 3 years. we were advised that we could leave the scheme after 3 months having taken advantage of the benefits without having to pay any penalties. is this likely to be the case? they seem unable to give exact figures as to what we would actually end up paying after the initial 3 months.
finally, what would the reason be to stay on the finance at 10% if a highstreet bank offers closer to 6% (putting aside the free insurance and servicing for now)?
thanks in advance!!
matt
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