Flat rate 6% or APR for a Car Loan

staffie1

zorgan wrote: »

hi guys,

thanks for the replies, I think I managed to get a pretty good deal in the end.

The car was advertised at around £9988
Managed to get it for £9688
The road tax of £90.75 which then equals £9778.75
I then paid £300 Deposit which then equals £9478.75


Hire Purchase Agreement was 59 payments @ £201.42
last 60th payment of £499.42

typical APR 11.4%

how does this look to you guys?

You're going to pay £3000 interest on a car that costs £9500. That's a lot of money. Please consider the steep depreciation in the first year. By the time the car is 1 yr old, it will probably be worth about £7000 and you'll still owe nearly £10,000.

eschaton

zorgan wrote: »

I`m looking to buy a new car around 10k

I`m currently learning about the different finance options available to me, "A well known car dealership" have offered me what`s called a Flat Rate at 6%

is this a good deal or should i look elsewhere?

I just want to understand what other options are available for me, I have never had a loan in my life.

Why not just say Arnold Clark?

No rules against it.

BobbyMcDougall

zorgan wrote: »

hi guys,

thanks for the replies, I think I managed to get a pretty good deal in the end.

The car was advertised at around £9988
Managed to get it for £9688
The road tax of £90.75 which then equals £9778.75
I then paid £300 Deposit which then equals £9478.75


Hire Purchase Agreement was 59 payments @ £201.42
last 60th payment of £499.42

typical APR 11.4%

how does this look to you guys?

Why are you adding road tax to the loan?

Apples2

BobbyMcDougall wrote: »

Why are you adding road tax to the loan?

Good spot, I hadn't noticed that. It does seem crazy to pay £90 road tax over 5yrs. the tax will have to be paid another 4 times whilst still repaying the first £90 off.

We had a little chat through PM's. I'm not in favour of 5yr deals, it is far too long for me although some people seem happy enough with it.
By the time the deal ends the car will be 8yrs old. Looking on Autotrader for 8yr old 406's, they start at around £1,5k so right close to the bangeromics.

Paying £200 a month now for a nearly new car seems great, paying £200 a Month for an 8yr old cheap car doesn't sound so good.
With 3yr deals, even if you grow to hate it, it isn't too long to ride out the loan term. It would only be 6yrs old so you get some decent return to support your new car.

I wouldn't like to get stuck repaying a car I hate for another two years.

It is personal opinion though, some people are happy with it so good luck to them

spannerzone

A work colleague got a Kia (they;re not that bad!) and he got 3 years interest free and 5 year warranty on a £10k car that was about 1 year old. Ok it's a Kia but it was a reasonable car, had what appears to be a genuine 0% rate and the warranty is pretty good.

Just a thought.

iolanthe07

spannerzone wrote: »

A work colleague got a Kia (they;re not that bad!) and he got 3 years interest free and 5 year warranty on a £10k car that was about 1 year old. Ok it's a Kia but it was a reasonable car, had what appears to be a genuine 0% rate and the warranty is pretty good.

Just a thought.

I don't know why there is this prejudice against Kias. I have never owned one, but I follow the motoring press and they seem to receive excellent reviews these days. The new Picanto and Rio are generally highly praised by journalists. And who else has the confidence to offer 7 year warranties? I shall definitely consider a Kia next time I buy a new car.