Carfinance247

Mart34

Hi guys

I recently made an application with Carfinance247.co.uk, all went well and a couple of hours later I received notification that my application had been accepted. Car details were given and was told the paperwork would be drawn up. However when being talked through everything I was told there's a fee of £149 I have to pay to carfinance247 for what I can only think is for them providing the finance.

I have since made an application with Zuto, and again been accepted / approved or whatever you want to call it. Had anyone had any dealings with either company. I have been told Zuto also charge but been told by Zuto that they don't. Is that true or had anyone actually had to pay a fee?

Thanks in advance

andyfromotley

Zuto is a broker, their website says they may receive commission from the people they introduce you to, which hardly convinces me that they have your best interests at heart. It does not mention charges to you.

Why are you using a broker at all?? They will rarely get you a deal that you coudnt have found or beaten on your own.

Pixie5740

I haven't used either company so I cannot answer about Zuto's fees and I couldn't see anything on their website either.

However, from what I have seen on these websites these are sub-prime lenders with high APRs for buying a depreciating asset (car) and should really be avoided. Not to mention that you seem to have to use one of their dealers and probably will not be in a strong possession to negotiate on the price of the vehicle.

Instead of taking out one of these loans if you saved the money you would be making in repayments for 2-4 months you could probably buy a car outright.

Pixie5740

andyfromotley wrote: »

Zuto is a broker, their website says they may receive commission from the people they introduce you to, which hardly convinces me that they have your best interests at heart. It does not mention charges to you.

Why are you using a broker at all?? They will rarely get you a deal that you coudnt have found or beaten on your own.

Yes, a team of [STRIKE]bottom feeders[/STRIKE] brokers is exactly what Zuto are and no doubt they charge for their service.

The Zuto experience

Zuto is a team of friendly experts, dedicated to putting you back in control of one of life’s biggest buying decisions. We help people in a variety of financial circumstances, working with a panel of 18 trusted lenders to offer access to more than 60 finance products. From finding a loan right through to free vehicle and valuation checks, our one-on-one support means you never have to repeat yourself when you call, stay fully informed at every stage and totally in charge of the decision-making process.

Mart34

Thanks for your comments, can you guys recommend or suggest a provider I can go to direct? idealy I don't want to be paying over the odds

Pixie5740

What made you pick CarFinance247.co.uk and Zuto in the first place? Do you have defaults and missed payments on your credit files?

Since cars start depreciating the instant you drive them away from the dealership or previous owner I would always recommend buying a car using savings in the first instance.

If you are really hellbent on buying a car on credit I would either get finance through the dealership and negotiate hard on the price you pay for the car and any extras you can get thrown in, or get a personal loan from a reputable lender such as your own bank, Sainsburys, etc rather than one of these sub-prime brokers who will take your money and might not even find a willing lender.

If your only option is a subprime loan then I would forget about buying a car for now and save.