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Car Loan Rates.. help?
Hi all,
Ok, a quick overview:
I've been offered a new job. I currently have a company car. The new job i've accepted have offered a car allowance instead. They will give me 5k per annum.
I want to buy a car around the 15k mark. So i've been looking at loans. I've been on a few comparison sites but i'm not getting the advertised rate. Although my credit record is impeccable, i think. My Experian credit score is around 989. Never missed any payments, and i have approx £1000 disposable income per month.
I've been offered 6.2% from Tescos, instead of the 4.5% advertised. I've also applied for a Sainsburys loan, which i was also accepted for but they didn't give me a rate. I believe they will send through the details via post.
Is 6.2% good? Should I Continue to look around? Will these credit searches affect my credit score, although they were successful?
Any advice would be greatly appreciated.
Matt
Ok, a quick overview:
I've been offered a new job. I currently have a company car. The new job i've accepted have offered a car allowance instead. They will give me 5k per annum.
I want to buy a car around the 15k mark. So i've been looking at loans. I've been on a few comparison sites but i'm not getting the advertised rate. Although my credit record is impeccable, i think. My Experian credit score is around 989. Never missed any payments, and i have approx £1000 disposable income per month.
I've been offered 6.2% from Tescos, instead of the 4.5% advertised. I've also applied for a Sainsburys loan, which i was also accepted for but they didn't give me a rate. I believe they will send through the details via post.
Is 6.2% good? Should I Continue to look around? Will these credit searches affect my credit score, although they were successful?
Any advice would be greatly appreciated.
Matt
0
Comments
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6.2% is a good rate. More searches will probably worsen the rate you are offered.0
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I'd say 6% and below is pretty good, especially since your company is paying for it I wouldn't be too concerned.
Is there any reason you haven't just gone for finance direct from the dealership? (This is presuming you're getting a brand new car). I'm 19 and got approved for a £15k loan with Citroen, that's at 4.9%. There's also a fair few 0% deals knocking about with some manufacturers.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
Thanks for the replies.
Well, i'm getting a "nearly" new car. I haven't seen any good deals such as you mentioned. I will continue to look though!0 -
thebritishbloke wrote: »I'd say 6% and below is pretty good, especially since your company is paying for it I wouldn't be too concerned.
Is there any reason you haven't just gone for finance direct from the dealership? (This is presuming you're getting a brand new car). I'm 19 and got approved for a £15k loan with Citroen, that's at 4.9%. There's also a fair few 0% deals knocking about with some manufacturers.
4.9% apr or flat rate?
No such thing as 0% - it's factored into the price.0 -
Thanks for the replies.
Well, i'm getting a "nearly" new car. I haven't seen any good deals such as you mentioned. I will continue to look though!
I got a Citroen DS4 on finance with £5000 off the cash price, but that's at 4.9%
Just remember that with brand new cars, even though you're getting finance you CAN haggle down. Very easily. If you walk in and say "I want to sign for a car today, give me your best price", be armed with some comparative offers from other dealers and manufacturers.4.9% apr or flat rate?
No such thing as 0% - it's factored into the price.
There is such a thing as 0% finance, if the price is the same as buying it with cash or on finance.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
I like the Astra GTC 2.0 CDTI. There are some decent ones 13k-16k 1-2 years old with 1-5k mileage.
Yes it's 6.2% APR.0 -
thebritishbloke wrote: »What car are you looking at? There's some pretty good 0% deals on a Mazda 2 at the minute, £12k for a decent model. You can see their deals here.
I got a Citroen DS4 on finance with £5000 off the cash price, but that's at 4.9%
Just remember that with brand new cars, even though you're getting finance you CAN haggle down. Very easily. If you walk in and say "I want to sign for a car today, give me your best price", be armed with some comparative offers from other dealers and manufacturers.
4.9% APR
There is such a thing as 0% finance, if the price is the same as buying it with cash or on finance.
Yours the pcp offer?
This Representative example reflects the typical finance profile for customers funding a new DS4
Representative Example
36 monthly payments of
£249
Total deposit
£7,270
Total number of monthly payments
37
Optional final payment
£7,233
OTR Price including compulsory £120 Roadside Assistance
£21,845
Amount of Credit
£14,575
Total amount payable including optional final payment
£23,467.06
Interest rate (fixed)
4.9%
Representative APR
4.9%Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0 -
I like the Astra GTC 2.0 CDTI. There are some decent ones 13k-16k 1-2 years old with 1-5k mileage.
Yes it's 6.2% APR.
they dont have that much power, relation has one and loose money quickDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0 -
Yours the pcp offer?Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
Hi all,
Ok, a quick overview:
I've been offered a new job. I currently have a company car. The new job i've accepted have offered a car allowance instead. They will give me 5k per annum.
I want to buy a car around the 15k mark. So i've been looking at loans. I've been on a few comparison sites but i'm not getting the advertised rate. Although my credit record is impeccable, i think. My Experian credit score is around 989. Never missed any payments, and i have approx £1000 disposable income per month.
I've been offered 6.2% from Tescos, instead of the 4.5% advertised. I've also applied for a Sainsburys loan, which i was also accepted for but they didn't give me a rate. I believe they will send through the details via post.
Is 6.2% good? Should I Continue to look around? Will these credit searches affect my credit score, although they were successful?
Any advice would be greatly appreciated.
Matt
Just checking that you realise that car allowances are subject to tax an NI deductions so you will be getting less than £5k per year (actual amount will depend on your tax code)."We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0
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