2 x Single vs Joint Loan rates the same?

mattjames1980

I am looking to get a loan for 15k for a new (used) car for when i start my new job next month where we get a car allowance. I currently have an outstanding loan for our other car I have from a year ago with around 8.5k outstanding.

I've applied for a loan jointly with my wife and been approved but at 8.9% APR. I've been approved individually for 15k at 8.9% and she's been approved individually for 15k at 8.2%

is there any point in applying individually each for £7.5k or will we get the same rate again?

i know applying multiple times in a short period effects your rating, my wife's (currently 999) and mine (972) are both rated excellent but i would rather a lower rate.

thanks in advance (please be gentle)

matt

[Deleted User]

I doubt if the rate is going to go down on a further application. But if you have definite offers (ie no further checks) then another search wouldn't harm, assuming this is your last application for credit for a while.

Remember though, that your score isn't anything to do with the credit you may be offered.

mattjames1980

thanks zx81, i got the idea when Experian showed "available credit"... Applied to sainsburys for the 7.5k and got the offered 4.6... Just waiting for the wife to speak to Santander on Monday for 7.5 for her

getmore4less

Why not get a cheaper car and have it paid off sooner with the car allowance.

£23k in debt for cars that will be depreciating fast.

there are probably some lease deals that would work out better or even new cheaper car on very low loan rates might even be 0% around.

mattjames1980

thanks getmore4less, i looked at lease and PCP the problem being i wasn't sure of my mileage with the new job and the penalties per mile seem pretty steep. in reality cheaper car would've been the more sensible option but new job, customer facing, 1st impressions and all that jazz!

i've never liked the idea of PCP in that, pay a deposit, pay monthly, end of 2/3 years you still don't own your car unless you pay the balloon payment...you have what they guessed the retained value of the car would be. i've heard when they value the car "scratch here, dent here" etc etc worst than 2nd hand car salesman. but happy to be told otherwise

if anyone was interested in the result. 7.5k loan approved at 4.6 APR from sainsburys for me and 7.5k loan approved at 4.6% for the wife from derbyshire building society.

to me it says there's no point in joint loans unless perhaps you both have a low rating....

MallyGirl

mattjames1980 wrote: »

in reality cheaper car would've been the more sensible option but new job, customer facing, 1st impressions and all that jazz!

Unless you are taking customers out in your car they will have absolutely no idea what you drove up in. You park, go to reception and then they call the customer. Unless you think people will be so eagerly awaiting your arrival that they are watching for you?

F1F93

mattjames1980 wrote: »

i've never liked the idea of PCP in that, pay a deposit, pay monthly, end of 2/3 years you still don't own your car unless you pay the balloon payment...you have what they guessed the retained value of the car would be. i've heard when they value the car "scratch here, dent here" etc etc worst than 2nd hand car salesman. but happy to be told otherwise.

Just to clear a few things up, there a three options at the end of a PCP deal:
1) Pay the balloon payment and keep the car.
2) Part-ex the car for a new one. The balloon payment gets paid off first, then any left over is yours to keep or put towards a new car.
3) Hand the keys back and walk away.


The excess milage charges only apply for option three. For option two, they treat the car as a part ex, so high milage cars will attract a lower trade in price which might not cover the balloon payment, but should unless its too excessive. For number one it doesnt ever matter. But still, putting a higher milage down will only increase your payments slightly!

Lastly, there is usually equity in the car, so you shouldn't ever hand the keys back. I was looking at a new Hyundai i10, and I went to webuyanycar and asked for a quote on a hypothetical three year old i10 with average miles and condition. It was over a thousand pounds more than the balloon payment! So if you need to, just sell the car and use the money to pay the balloon figure, then use what's left as a deposit.

Hope this helps!

bargainbetty

Personally, I'd rather see a rep/agent/salesperson in a clean and economical car, as the flasher it is, then more I think he/she is going to try to charge me for things.

All that jazz is fine, but what happens if this job doesn't work out? Reduce the potential damage somewhat, and get something cheaper!

getmore4less

mattjames1980 wrote: »

thanks getmore4less, i looked at lease and PCP the problem being i wasn't sure of my mileage with the new job and the penalties per mile seem pretty steep. in reality cheaper car would've been the more sensible option but new job, customer facing, 1st impressions and all that jazz!
..

Depends on the job and ifyou are carrying, but there are plenty of perfectly good cars that look good(like new) 1/2 the price you are looking at 2/3 £10k will get something nice,

After you have paid all the other costs insurance maintenance etc how long will the allowance take to pay off the debt.

do they give the company car option, much less risk in a new job if you want a nice new shiny car.


What about the car you allready have, is that any good for the time being and get something cheap for the OH to run about in till the allowance has given you some cash to work with.

edit : what sort of car are you aiming at?

mattjames1980

thanks all, plenty to think on. Especially the PCP option.

looking at a VW Passat. 2ltr diesel. Eat up the miles, last longer than me probably...going to have a look at what 4year old ones go for vs estimated retained value.

thanks again all

getmore4less

mattjames1980 wrote: »

thanks all, plenty to think on. Especially the PCP option.

looking at a VW Passat. 2ltr diesel. Eat up the miles, last longer than me probably...going to have a look at what 4year old ones go for vs estimated retained value.

thanks again all

if looking at VAG group have a vary serious look at the Octavia or if you can stretch the Superb

In L&K spec the Octavia is a great buy and loaded even in the hatch the boot is like a tardis or the VRS for something a bit sporty, even the Elegence spec has plenty of goodies and cheaper.

If you get fuel paid then the 1.8 octavia is an hidden gem.

the briskoda forum is very good