Car Finance

Mavis123

I know this subject is probably on here somewhere, but I'm not an expert at this. We are just about to buy a car and need finance for £7400. If we finance through hp it is 4.49% flat rate. A personal loan say from Lombard is 6%. But what is the best way to do this finance???
From Bewildered.

Xbigman

4.49% flat rate is not on the same scale as 6% APR, it actually works out dearer.

Get some quotes making sure the term of the loans is equal and compare the total amount repayable. If two loans are both over 5 years the dearer one is the one you pay most on. Sorry if thats obvious but salesmen are good at pointing you to the 4.49 bit and even better at steering you away from the facts you actually need to know.
Also, always make sure you are not being stung with insurance (PPI) that you don't want. A low quote isn't low if you can only get it with PPI.
Regards



X

MarkyMarkD

6% APR is hugely cheaper than 4.49% flat (which is around 9% APR). Go for the personal loan!

fatboyonadiet

Try to get a credit card instead and either get a 0% and switch whenever it runs out of get a Life of Balance card, Texaco do one which is 3.9%

pvsol

The AA were doing some cheap loans for cars a few weeks ago