Advantage Finance, any good?

Jojo55

Has anyone ever dealt with this car finance company? Just trying to do some research as they've offered me quite a good deal compared to some others. Their website looks legit and I haven't found streams of online complaints like i have with others. Thanks in advance!

Tixy

Past posts seem to suggest they are very expensive for car finance, but that they are a trading company who provide loans.

Their website unusually doesn't show a representative APR that I can see.

Surprised to see they have offered you a good deal - what APR are they willing to lend to you at?

Jojo55

Depending on what i decide to borrow, 11-15%

Tixy

You've probably already checked but those are definitely APRs not flat interest rates aren't they?
Just that some car finance companies have a habit of quoting in flat rates and only showing the APRs on the loan documentation just prior to signing.

Pixie5740

As Tixy has suggested double check that the 11 to 15% is definitely APR rather than a flat rate. Although Advance Finance, or any other lender for that matter, won't know what interest rate to offer until they've done a full credit check.

Which other lenders have you researched and do you definitely need to borrow money to get a car? Could you afford to buy a cheap run around for £1,000 or go without a car altogether as I think borrowing from Advance Finance might end up being quite expensive.

SeanG79

I doubt that is 11 to 15% APR, I havent seen an Advantage deal in a couple years but their average finance agreement was around 14% FLAT so nearer to 30% APR

Jojo55

Thanks for your replies. Can someone explain flat rate and APR in laymans terms please?

Tixy

APR is a comparable measure of interest. It is the annual percentage rate and interest is calculated on the daily balance outstanding.

An APR of 15% on a loan of £5,000 over 5 years would mean total interest of £2136, so monthly repayments of £119. .

Flat rate is a term often used by car dealers as a selling pitch as it sounds like a lower number (as a rough guide the APR is typically twice the flat rate).

A flat rate of 15% on a loan of £5,000 over 5 years would mean total interest of £5,000 x 5 x 10% = £3750, so repayments of £146 a month.

An agreement must show the APR but some car finance sellers often only show this document right at the last moment and prior to that only talk in terms of flat rate.