Best way to finance car??

ipri

Do i really need to accept car dealer finance??any better ways?? Ta Ian

greyteam1959

Personal loan from you bank would be lots lots cheaper

ipri

Thanks...what rates are banks Vs car dealers charging?...what do i look for ??APR for proper comparison? Ian

Rafter

Ian,

Always use the APR - The dealer will often quote 'finance charge' which is misleading because it is usually a lot less than the APR.

The advantage of dealer finance is that you can walk away and hand the keys back half way through your deal. Useful if the bottom falls out of the used car market or you don't like the car and are stuck with it for longer than you want.

Otherwise as Mervyn says, a personal loan will be cheaper because you are not paying for this 'insurance', nor are you paying for the commission the dealership will earn on the finance deal.

Best way to get a good deal on a car:

Don't buy new - it will be worth £2000+ less as soon as you drive off.

Buy nearly new, low mileage, still with 12m manufacturers warranty, preferably privately and you should get a good deal, a run in car and something that will still be worth 50% of what you have paid for it after 3 years.

Good luck

R.

Rafter

Ian,

Re rates. Aim to pay under 8%. You may find better if your credit rating is very good, but you may have to accept overpriced payment protection to get that rate, then cancel the insurance straight away. By law they cannot withdraw the loan offer and you might get the rate down to 6.5%.

All depends on you though - if your income isn't that stable, you have had problems with money in the past or you already have quite a bit of debt you may have to pay a lot more.

R.