Loans

Loans

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loan for a car 17.5%

Posts: 1,834 Forumite
Hi Everyone,

I'm wanting to get a car and have just had a quote from my bank (HSBC) for £4000. They've offered me one at 17.5% - this seems high, I've seen figures that say peoples loans are like 8% and rates like that. I've never had a loan before so I don't know if this is actually good. Can anyone advise me?

thanks,
Katie
:A I love MSE!!! :A

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Comments

  • Posts: 321 Forumite
    :eek: 17.5%?? thats bearable on a credit card debt of £500 or so but on £4k you will take years to pay it off!

    I borrowed £5k from Natwest on 6.9% over 5 years and even then I will have to pay back a lot more than I borrowed.

    Do you really need a £4k car?
  • Posts: 321 Forumite
    A couple of my friends have used AA loans in the past and found the rates to be good and they are quick to send out the money
  • Posts: 9,431 Forumite
    I got my loan (for the car ) from Cahoot .I just checked on-line and the cahoot link send you to abbey ....Here is a link http://www.abbey.com/csgs/Satellite?c=GSProducto&cid=1127562783899&pagename=Abbey%2FGSProducto%2FGS_InfProducto
    Looks like you could get one for about 7.9% thats a fair old saving over 4 or 5 years
  • Posts: 9,431 Forumite
    One more thing .I didn't go for the protection on my loan .As I thought If I was to lose my job or for some reason be unable to pay .I would sell the car and pay off my debt .
    It Is up to you .I saw it as an extra monthly payment I could not afford .
    Hope this stuff helps
    ****When you get the offer of a good rate ...Go back and see HSBC ..They may find they can match or better that rate (it's worth a try )
  • Posts: 1,834 Forumite
    hi guys,
    thanks, i will definately look around. i've been looking online at cars as well and i think i could get a pretty good one for about £1500-£2000. Muuuch better. Not as good as the one I want but I think I have to be sensible about this. :) Well definately shop around for a better rate. I have a hsbc credit card with about £600 on it and that's 15.8% or something like that so they are taking the micky with the loan I think!

    Thanks,
    KKxx
    :A I love MSE!!! :A
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