Buying a second hand car, finance advice? help

sandybrag

Im looking to buy my first second hard car that is 2-3 years old maybe slightly older.

I have a perfect credit history, and no bad marks against my name.

What is the best deal to go for in terms of getting a loan as Id like to pay the balance outright and not have to use the garages own financing deal which would likely be a higher apr?.

Any good deals at the moment anybody know of?.

Thanks for any advice. Im going to be looking Monday and Tuesday of this week so any advice greatly appreciated asap.

Tassotti

Apply for a credit card that has 0% on purchases. When the term runs out, either negotiate a further 6 months, or transfer the balance to a different card.

How much are you looking to spend...can you get a CC

Tass

Phoenix79_2

How much you looking to spend? If its a fair bit then its very unlikely that you will be able to get that much on a credit card. Also garages will often charge a 3% fee (estimate) for paying by credit card.

I'd say a low rate loan would be the best. Abbey at 5.8% and NR at 5.9% with no redemption penalty.

sandybrag

Thanks for your help.

Im guessing ill be borrowing about 4 to 5000.

I would imagine the finance deal offered by the garage would be much higher than by say going through Abbey or NR?.

Sorry ive never spent this much on a car before, so thanks again for any help/advice again you can suggest

Phoenix79_2

I can't imagine the garage offering sub 6% finance.

How long you looking at paying it off?

sandybrag

4 years maybe a little less..

roswell

most garages dont show APR if they did it would be between 20 and 30 %, A rule fo thumb, you got to garages to buy cars, you go to banks to borrow money, dont confuse the 2. A garage will tell you it can do a 8 % finance deal thsi is flat 8% and isnt APR it will cost you much more over the term.

If you can get a credit cardw ith big enough limit, idealy 0% on purchase`s or cash back, if you can get 0 % on purchases that would be best and at the worst gives you time to shop around.

The 3% handleing fee will be added to the cost od the car so would still be 0%, your going to ahve to pay the fee if you use cedit card and sometimes if you use a debit card so unless your going to walk in with £5000 in your back pocket you will have to pay it.

The best an cheapest way to buy a car is not to borrow as the car will decrease in value but your cost of borrowing wont come down.

sandybrag

roswell wrote:

most garages dont show APR if they did it would be between 20 and 30 %, A rule fo thumb, you got to garages to buy cars, you go to banks to borrow money, dont confuse the 2. A garage will tell you it can do a 8 % finance deal thsi is flat 8% and isnt APR it will cost you much more over the term.

If you can get a credit cardw ith big enough limit, idealy 0% on purchase`s or cash back, if you can get 0 % on purchases that would be best and at the worst gives you time to shop around.

The 3% handleing fee will be added to the cost od the car so would still be 0%, your going to ahve to pay the fee if you use cedit card and sometimes if you use a debit card so unless your going to walk in with £5000 in your back pocket you will have to pay it.

The best an cheapest way to buy a car is not to borrow as the car will decrease in value but your cost of borrowing wont come down.

Thanks for that. Are there any cards you would recommend, and how long does the 0% last, ie how quickly would i need to pay it back?. Or would i have to switch from one cards 0% deal to the next and how often?

nomoneytoday

moneysupermarket.com will show the cheapest loans available to you. There are many under 6-7%

Some dealers will try and match the finance, but will give less discount on the car you are purchasing. Rule of thumb is flat rate is worth double APR, so look for a 3% flat rate to get the equivalent of 6-7% APR

Also, look at guide prices for the car you want to buy to get an idea of the true value, and be prepared to haggle