car dealership finance

therealginganinga

please confirm if correct

1. the fixed rate of 7.5% that I was quoted by the dealership salesman should be doubled to give the approx APR

2. the APR would not vary greatly between the mainstream high street loan providers & the dealership due to the amount I wish to finance - approx £4800

3. the rate I was quoted above by the dealership salesman is the guaranteed rate (if application successful)

4. finance from a dealership is more easily obtainable than getting a loan from a mainstream high street loan provider

5. never put down a deposit until after the finance application has been accepted

thanks,

TRGN

therealginganinga

Tried the moneysupermarket gadget to see who would likely accept my application - only 2 companies were likely to accept, 70 % and 90 % chance respectively but the APR was quite high. Clydesdale was a 'low' chance of acceptance.

Also tried the nationwide softsearch a couple of days ago and got an APR of around 13. Tried again last night and the APR had jumped up. Was this because I softsearched twice within only a few days?

So am I best sticking with the car finance company and getting an APR of around 15?

Thanks in advance

TradePro

Do you have credit problems? If not 15ish APR is too high.

OddballJamie

Have you considered buying an older car without finance and running that until your credit rating increases?

therealginganinga

I have quite a bit of debt sitting on several credit cards (all on 0% balance transfer deals).

My contact hire is up shortly. I was paying far too much per mth. By taking the deal offered at the dealership I would be saving over £80 per mth (albeit for an older car). I would hope to keep the car well beyond the 4 years that I would be financing it over.

I need a car in the next few wks to get to work - public transfer aint an option. I don't have savings and would take too long to save the cash required for a decent car.

Basically I am a slave to finace as I have no other options available to me.

Am I likely to be accepted for the dealership finance and is the rate they quoted guaranteed?

The salesman said they go through a list of companies and they determine the type of finance being offered - either in the form as a standard personal loan or a higher purchase.

Thanks people

therealginganinga

Another dilema -

Would it be better to make higher mthly payments over 3 yrs and then when the car is paid off, use the spare cash to start making a dent on my existing credit card debt.....

....Or make lower mthly payments to the car over 4 yrs, start making a (smaller) dent on my credit card debt straight away then continue to make more of a dent using the savings when the car is paid off

???

OddballJamie

What's your credit card interest rate and balance?

Strider590

Jeeeeeeeeez, talking about "robbing Peter to pay Paul".....

You can't borrow yourself out of debt.

Just live to your means, forget all this "aspiring to be middle class" BS, you go to work = your working class, don't let the system drag you into debt with delusions of grandeur.
Nobody really cares what you drive, buy a used car, save yourself several hundred £ a month, get yourself out of debt.

On my wage I could go out and get myself a brand new £30k Audi A4 on hire purchase or finance and still pay off the mortgage, but instead I drive a 9 year old Vauxhall Vectra (3k cash, 5 years ago), which bar fuel (about £25 a week) costs me next to nothing to run.

^^ Too harsh? maybe? I just have to say it like it is.

therealginganinga

I have around 10k debt which is spread around several cards with 0% interest.

Not too harsh strider - I need a car that I know is going to last a few years after it is paid off . I'm looking at something small like a corsa of around 5 yrs old. I admit I made a huge mistake when I took out the expensive contract hire.

I need a car fairly soon so would be unable to save up the cash required to get anything that was going to be reliable

Apples2

£10k debt and looking for even more debt? This does not sound good at all.

If you're on an average salary, your debts will soon consume you. Heed the warning signs.