Santander Car Finance? What to do?

d0gf1sh · 5 June 2011 at 1:14PM

This is my second post on here regarding the same issue, only a few things have since come to light and MSE may have saved me before I signed anything.

I've been looking for a used car, found the ideal one! Great price, condition and colour. So the guy ask (at the dealership) asks me how I am going to finance it. I say a personal loan, and to that he explains that the Santander Car Finance they offer would be cheaper than a personal loan at around 5%. Never having sought credit before I agreed to see if they would accept me. They did and the guy phoned to grant the good news. Then the strange and rather clandestine attitude kicks in.

I phone back to thank him but to also point out that as great as it is to be accepted, I have yet to see anything in black and white regarding the monthy repayments, interest and other T&C's. He explains to ring on Weds and he'll explain. I phone back, explain I am uncomfortable with the fact that he won't just tell me and he coughs up the info - The interest is a flat-rate of 6.5% (and I should've known that but only found out after reading it on MSE - I'm kicking myself) which makes the APR nearly 15%! More than APR on a personal loan! I am angry at myself and also at him because had he explained the APR was actually 15% and not 5% which turned out to be the flat rate, I could have saved a footprint on my credit report.

I've heard some negative things about Santander and car finance especially..... any advice would be great as I haven't signed into any agreements yet.

Thank you

chanz4 · 5 June 2011 at 4:59PM

as long as you keep up payments they will be fine, you tend to find comments on here when people are in arrears with finance

Phils_debt · 5 June 2011 at 5:06PM

Nearly all car dealers quote "flat rate" now they dont like to answer in apr because and im quoting a car sales manager here" unfortunately tye equation for apr formular is way to complicated so everyone uses flat rate " mmmm yeah trying to make me sign but i didnt they offered me 4.9% flat rate but decided to keep my current car