£13,000 Loan at 7.1% - Could We Get Better?

Apples2

james3333 wrote: »

WHAT! i dont think so

It is if you don't meet the criteria for the headline rate.

Congratulations to you, you are one of the 51% of successful applicants, there is another 49% of successful applicants who won't get the headline rate (and many more who get declined).

YorkshireBoy

james3333 wrote: »

you were quoted 5% online, but now its 7%....are you not questioning why?
did you miss read the online apr? or did you just see the advert saying 5% APR VARIABLE?

I think you mean 5% APR Representative (meaning at least 51% of successful applicants will get that rate)?

These loans have a FIXED interest rate, not a variable one.

ch3101

What you'll find is that the lenders have maybe 5 different rates that they will lend at depending on your risk.

Eg if you don't get 5%, the next best they offer is 7.1%.

It's not a bad rate at all, just people see it as terribly high compared with 5%.

You said that you have nothing else though so may as well overpay it and save on interest

ch3101

Also, I don't think tesco are very bothered by 1 other search so give that a try, you might be lucky and get 5.1%.

And Tesco's next step up is 7.0% so you might save a couple quid anyway.

james3333

YorkshireBoy wrote: »

I think you mean 5% APR Representative (meaning at least 51% of successful applicants will get that rate)?

These loans have a FIXED interest rate, not a variable one.

sorry, you are correct....

pimento

I bought a car that was a year old. Had 5000 miles on the clock and cost just over half what it cost the bloke who bought it new. To me it looked and smelt like a brand new car.

Could you not look at doing that?

Justicia

Malky wrote: »

Not forgetting servicing, MOT, tyres, brakes and fuel.

...Also not forgetting the possible new driver bumps and scrapes!