Loan Advice

logie48

I'm in the process of apply for a loan to add to a deposit for a car. I've already applied to A&L (Santander) and was accepted instantly and received the papers a few days later. The only problem being, the advertised representative APR was 8%, yet on the letter it says my rate is 12.9%. Now i've done a bit of research and realise they can't offer this rate to all, but is there anything I could do to get this rate? By phoning them in person, or re-applying?

If not successful, would it be wise to apply for many low rate loans (i.e. tesco bank @ 8.7% or first direct @ 8.9%; only an extra couple of pounds per month)?

I could go for the dealership finance. But I know this will be more expensive than a personal loan. The finance manager was trying to talk me out the loan option, as he said the hire purchase is better (in some way) as it's tied to the car.

Many thanks in advance.

easteregg_2

logie48 wrote: »

I'm in the process of apply for a loan to add to a deposit for a car. I've already applied to A&L (Santander) and was accepted instantly and received the papers a few days later. The only problem being, the advertised representative APR was 8%, yet on the letter it says my rate is 12.9%. Now i've done a bit of research and realise they can't offer this rate to all, but is there anything I could do to get this rate? By phoning them in person, or re-applying?

If not successful, would it be wise to apply for many low rate loans (i.e. tesco bank @ 8.7% or first direct @ 8.9%; only an extra couple of pounds per month)?

I could go for the dealership finance. But I know this will be more expensive than a personal loan. The finance manager was trying to talk me out the loan option, as he said the hire purchase is better (in some way) as it's tied to the car.

Many thanks in advance.

You could talk to them to ask why your rate is higher and if they would reduce it, and there is nothing lost by asking there.

Applying to other companies can leave a "footprint" on your credit file, and if there are too many of these then companies will start increasing the rate further or turning you down.

If you have a good credit rate I would check some of the companies here http://www.p2pmoney.co.uk/compare/borrow.htm as they offer low rates. If your credit rating isn't so good it may be better to stick to the rate you have been offered after speaking to them.

If I were you I would avoid the dealership option if the rates are higher and it may also be secured on your car.