Tesco Loan

magfo

Been looking for the best deal for us to get a loan to pay towards a new car. The finance we were offered is too high, so we have successfully found a couple of places that will give us a loan for less each month.

We are ordering the car a little earlier than we first planned, plan had been to get car beginning of June, and start paying for it beginning of July. This is necessary as a previous private loan will be paid off on 1st June and we have free money from July to start paying new car.

We will pay loan over 3 years and plan on selling the car again when it is 3 years old. I have come across tesco loans and see that they allow you to pick the number of months to pay over and also let you have a 2 month break at the start. This would suit us as it would mean our finance wouldn't start too early, but yet we could order and buy our car as soon as we had the funds. So because we'd still want to finish when the car is 3 years old, we would pay over 34 months (starting after the 2 month break). Are there any other companies that will let you pick the number of months you pay over? I have found a couple that let you defer at beginning but none that let you pick just 34 months.

Other question is, when I use the calculator, there is a box for a special code, just wondered if anyone has had a code for loans from tesco that they'd be willing to share? Always happy to get a couple of clubcard points thrown in if I can.

They haven't got the lowest rate out there, but if they are able to tailor the loan around our needs, then it is worth it. Our only other option was to use our bank lloyds tsb to get the loan, apply for it just a day or 2 before we pick up the car, with the expectation that we will get approved and will get money almost immediately and then just have to find money elsewhere for the first months payment, not ideal, but do-able. However, I have just compared the total amount payable on the 36 month lloyds with the 34 months tesco and in actual fact, overall we'd save £209 using tesco. So seems like a better option, apart from the monthly payment being slightly more than we'd have liked.

So to summarise - Can anyone suggest any other places with a lowish rate that let you pick the number of months and let you defer for 2 months (or even just 1 month would be enough)?

And does anyone have a code for tesco?

Thanks

Apples2

You do realise that although you have a 2 Month payment break at the start, the Interest is still being added?

For the first 2 months you are going backwards with the debt climbing.

magfo

Yeh I know that, but as I said our only options are lloyds or this tesco one. Lloyds is a higher interest rate so comparing those 2 tesco still works out cheaper overall. If we go with someone like m& s or sainsbury who have lower interest we don't know exactly what date we wil receive the money and therefore when the 1st payment date will be, lloyds is a quick decision and in bank same day so we can almost choose when payments will be. We could apply now to m&s and end up getting money too early, or wait before applying and end up it coming too late, the whole process is a bit longer and not set times. Does that make sense? So to avoid that, if we start paying in 2 months then we don't have to worry about not having the money to make 1st payment as we will by then but it will still end when the car is 3 years old.

Any other alternative suggestions are welcome if it can fit round our predicament

CLAPTON

you have a loan already
you have a car already
you intend to get a new loan in June for a new car
you plan to replace the car in three years, maybe using yet another loan

but you have no savings at all even sufficient to pay a month or so loan repayments
what do you do if an unexpected bill comes in?

maybe these things are linked in some way

magfo

We do have sufficient savings actually, but we would prefer not to use that due to us also having an extension built in a few months time and having to keep money for any unknown costs. Don't judge my money situation as far as savings go if you don't know me. I only asked for advice on best way to deal with this.

I am actually a very responsible person when it comes to money and would always research the cheapest way.

Thanks

CLAPTON

magfo wrote: »

We do have sufficient savings actually, but we would prefer not to use that due to us also having an extension built in a few months time and having to keep money for any unknown costs. Don't judge my money situation as far as savings go if you don't know me. I only asked for advice on best way to deal with this.

I am actually a very responsible person when it comes to money and would always research the cheapest way.

Thanks

if that were so, you would recognise the sense of my post even if it wasn't entirely appropriate to your circumstances

Apples2

Sorry but how can you not have the money for the first two repayments if you are sitting on a sum for your extension?

Taking a two month holiday is never a good thing (because the interest is being added).
Take the Tesco one but not the repayment holiday, use your savings for the first two payments, it will work out cheaper.

We see dozens of posts where people shout that they are being ripped off once the true extent of this two month holiday becomes clear.

magfo

Thanks for the tip, it's made me rethink about the payment holiday, will go for the lower rate loan and find the first payment elsewhere.

Was maybe slightly blind sided for a moment, probably due to us sorting money out from every angle at the moment.

Will go back and check all the sums

serverking

magfo wrote: »

We do have sufficient savings actually, but we would prefer not to use that due to us also having an extension built in a few months time and having to keep money for any unknown costs. Don't judge my money situation as far as savings go if you don't know me. I only asked for advice on best way to deal with this.

I am actually a very responsible person when it comes to money and would always research the cheapest way.

Thanks

Wow - you're overspending like Newham Council:eek: make sure you remember all those repayments when they are all due. Instead of buying a car, keeping it 3 years, then selling it on, why not lease? There's lots of personal car leasing firms out there, and a wide range of vehicles.

We ain't judging you mate, think of this forum as concerned relatives who just want to look out for you:p

What car are you going to get? The new Focus looks good:cool:

CH27

Be very careful you don't overstretch yourself. House renovations always go over budget & interest rates will rise soon.

magfo

Thanks for your concerns. The additional borrowing on the mortgage is already agreed so the interest rate is a done deal. We know where we are with all the repayments, would never enter into anything without doing our sums first and making sure we can afford it. The loan we are about to finish off was actually an interest free loan. My car was financed half on interest free finance and half on interest free credit card. We are very savvy when it comes to thinking it all through and like I say would never live beyond our means. I should point out for anyone that is concerned, over and above all our bills, we also save £350 a month into an ISA, £500 a month into a regular savings account (for those unexpected bills), £300 a month into another savings account to pay fir our annual holiday and we each have £250 a month out our salaries to keep to ourselves and spend as we choose. This is all aswell as paying all bills and taking into account any future loans. Just to give you an idea of how we do manage our money. Hope that has settled some worries.

I do appreciate the helpful replies and appreciate that it's all in good faith. I perhaps just didn't like being doubted over my money management. But posting this has definitely made me decide to not use a payment holiday and to pay first month with savings.

Thanks all