Car Loan Rates.. help?

mhyde88

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

[Deleted User]

6.2% is a good rate. More searches will probably worsen the rate you are offered.

thebritishbloke

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.

mhyde88

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!

R_P_W

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.

thebritishbloke

mhyde88 wrote: »

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!

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.

R_P_W wrote: »

4.9% apr or flat rate?

No such thing as 0% - it's factored into the price.

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.

mhyde88

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.

chanz4

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%

chanz4

mhyde88 wrote: »

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 quick

thebritishbloke

chanz4 wrote: »

Yours the pcp offer?

Yeah it's on a PCP, but not the offer that's posted online. The offer they have online is for their mid-range diesel, I got the mid-range petrol so it's a bit cheaper (I only put in a £300 deposit and pay £250 a month)

Clive_Woody

mhyde88 wrote: »

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).