Car lease finance - I can't work out how the monthly payments

GothicStirling

Don't use 'average APR', its a sales gimmick. Your true APR will depend on your credit rating and borrowing history. The higher risk the financer thinks you are, the higher the APR.

neilmcl

photome wrote: »

Halifax bank do PCP loans for cars, when i was looking a few months ago they were around 3.8%apr

edit, just realised you need to be a halifax customer of at least 3 months

It says 4.6% APR representative here http://www.halifax.co.uk/car-finance/

Still a bit cheaper than some dealers but the saving will probably disappear once you take into account the lack of dealer finance contributions etc.

neilmcl

GothicStirling wrote: »

Don't use 'average APR', its a sales gimmick. Your true APR will depend on your credit rating and borrowing history. The higher risk the financer thinks you are, the higher the APR.

I think the term you're looking for is APR Representative, which at the end of the day is a standard way to compare finance rates, which most people will get unless they have adverse credit histories, but that goes without saying.

photome

neilmcl wrote: »

It says 4.6% APR representative here http://www.halifax.co.uk/car-finance/

Still a bit cheaper than some dealers but the saving will probably disappear once you take into account the lack of dealer finance contributions etc.

I ended up with a Halifax PCP at 3.8% Also got all dealer contributions...total cost was just over £1000 less than taking the dealer PCP finance

deaston

neilmcl wrote: »

It says 4.6% APR representative here http://www.halifax.co.uk/car-finance/

Still a bit cheaper than some dealers but the saving will probably disappear once you take into account the lack of dealer finance contributions etc.

My dealer aren't offering anything and I'm a Halifax customer - good call!

deaston

photome wrote: »

Halifax bank do PCP loans for cars, when i was looking a few months ago they were around 3.8%apr

edit, just realised you need to be a halifax customer of at least 3 months

Thanks for the heads-up. The final payment is around £10,000 less, so it makes the monthly payments much more (£1,022 instead of £859).

Edit: Once I actually put in the details of the car, the final value increased and you're right, the payments were A LOT lower. I got 4.3% rather than the 8.9% of the dealer and it's all been accepted. Top tip sir!

I've also increased the deposit a little so the monthly payments are only £600.

I just hope the dealership don't suddenly throw their toys out of their pram and adjust what they offered me as trade in.

Doing the sums, you've just saved me over £6,200. I owe you a beer!

neilmcl

deaston wrote: »

Thanks for the heads-up. The final payment is around £10,000 less, so it makes the monthly payments much more (£1,022 instead of £859).

Edit: Once I actually put in the details of the car, the final value increased and you're right, the payments were A LOT lower. I got 4.3% rather than the 8.9% of the dealer and it's all been accepted. Top tip sir!

I've also increased the deposit a little so the monthly payments are only £600.

I just hope the dealership don't suddenly throw their toys out of their pram and adjust what they offered me as trade in.

You should definitely talk to your dealer before proceeding because if you're not taking out their finance then as far as their concerned it'll be a cash purchase (albeit with a trade-in) and you may not get any perceived discounts they may be offering.

neilmcl

photome wrote: »

I ended up with a Halifax PCP at 3.8% Also got all dealer contributions...total cost was just over £1000 less than taking the dealer PCP finance

I doubt you got ALL their contributions, you certainly wouldn't have got their finance contribution if it was on offer.

deaston

So another question - how committed am I at the moment?

I test drove a car but didn't like the colour. He showed me another one which was correct colour, better spec - more what I wanted. But it wasn't "showroom ready", he didn't have the key and the workshop (who had the key) had closed.

So, to secure it, I put down £500 deposit on the understanding that if I wasn't completely happy, if there was a rattle or squeek or anything, I'd be able to walk away with my deposit.

Now I've got this new cheaper finance from Halifax, could he refuse to accept, saying the deposit I paid was based on me taking their finance?

neilmcl

They could argue that the deal that was offered was based on you taking their finance, which you've agreed to by giving them the deposit. If you were to back prepare for a fight to get all your deposit back.