Anglian / Hitachi windows loan agreement

choppy-c

Dear All,

We have been offered a pretty good price for new windows but an extra 10% comes off if we take out an loan agreement to pay it off (8 years @ 24% apr almost double i think ouch ) As we were going to pay upfront I am planning to pay the total off in month 1 or 2 in full. The bumph says we can clear at any time with a maximum of 1 or 2 months interest as penalty. So I was going to pay 90% off in month 2 leaving interest as negligable for month 2 then pay penalty based on month 2 - All looks possible.

Heres the BUT -

I dislike finance almost to the point of fear - I think the above 2 companies are likley to be fine can i ask the expertise here - -

- Anything to check as if we go for it (I want to be free of any agreement or lien as of month 3)
- Cant see any small print - is this a " Fair dinkum deal " ?
( I do appreciate i am taking advantage of the offer to get a 10%
reduction - but the salesman's idea not mine)
- Anything to do to cover myself

Thanks in advance as ever

Tixy

Are you sure any overpayments don't attract an interest penalty - ie that the big lump sum paid in month 2 won't also mean you have to pay additional penalties. Since the new loan rules brought in from 1 Feb lenders are now allowed to charge a penalty for overpayments (as well as for paying off in full). The max they can charge for this is up to 1% of the overpayments (or 0.5% if there is less than a year left of the loan term). Something to check in the small print.

[Deleted User]

unless they are so busy they can afford to lose your order(which i doubt very much)i would personally tell them that unless they offer you the extra 10% off for cash you will look elsewhere

ILW

Just tell the salesman you will buy with the 10% discount and no finance or take your business elsewhere. I have workrd in that area and am 99% certain he will accept your offer and probably more if you push hard. They build rather a lot of wiggle room into their quotes.

choppy-c

Thanks folks -
Well you see we have negociated to 75% off the initial price & then said no unless they met our final price which he initially said couldnt do & THEY did walk away.
Then said could meet our final price (It is year end - & that much is true !) but only swingable with HO (Yes i know the speil !) if the finance was involved so we have really battered it about a tad so far -
They are only 1000 over the supply only price from local reasonable quality product (rehau) with a good product & they include fitting & a good guarentee -
The old MSE philosophy has been at work !

bengalknights

Hitachi finance will provide you with a account number to which this account can be settled at any time or overpayments made to with out any penaltys using there website and it does update daily with a settlement figure.

There is however a £70 set up fee that is charged on your first payment.

choppy-c

Mr or Mrs Bengal

That is as i hoped & understood - you sound familiar with this is that the case ?

thanks

jonesMUFCforever

choppy-c wrote: »

Thanks folks -
Well you see we have negociated to 75% off the initial price & then said no unless they met our final price which he initially said couldnt do & THEY did walk away.
Then said could meet our final price (It is year end - & that much is true !) but only swingable with HO (Yes i know the speil !) if the finance was involved so we have really battered it about a tad so far -
They are only 1000 over the supply only price from local reasonable quality product (rehau) with a good product & they include fitting & a good guarentee -
The old MSE philosophy has been at work !

Are you going with one of the big national companies or a local one?

You would be amazed the difference in price between an honest local firm and that of a big one (I won't mention any names here).
They will get a kickback from the finance company as well as over charging you in my opinion.

Get more quotes and see what is available.

bengalknights

choppy-c wrote: »

Mr or Mrs Bengal

That is as i hoped & understood - you sound familiar with this is that the case ?

thanks

Yes i used hitachi capital last year for a purchase its a scheme they call flexible accelerated payments and as i knew id have the money in 2 months id thought best to take it out and make my credit rating look good with a early settlement on it lol.

ILW

I would give a few days and see if they call you.

choppy-c

bengalknights wrote: »

Yes i used hitachi capital last year for a purchase its a scheme they call flexible accelerated payments and as i knew id have the money in 2 months id thought best to take it out and make my credit rating look good with a early settlement on it lol.

Thats the same plan & my plan pretty much - not considered the rating part though -so sounds pretty straight forward & does what i want with no catches

Thanks again - bit paranoid i suppose /but just don't like loans full.