Loan approval rate question

lawson00

Hi All,

Just applied for my first car loan so sorry if there are any obvious/silly questions here!

I applied for £10k over three years through sainsburys as they were the cheapest according to MSE. Unfortunately the rate they have given me post approval is slightly higher (roughly £300 extra over the term).

So questions:
1 - is there a way to challenge the rate?
2 - is there any benefit in applying to other providers vs the risk of leaving hard footprints on my credit file?

For info - I have a good credit score and good income.

Thanks in advance - Kris

System

I would buy a much older car anyway, as you'll pay much less in depreciation, let alone interest. If you really want a new car and don't want to accept expensive finance you could just have a banger until you have the savings

AnotherJoe

lawson00 wrote: »

Hi All,

Just applied for my first car loan so sorry if there are any obvious/silly questions here!

I applied for £10k over three years through sainsburys as they were the cheapest according to MSE. Unfortunately the rate they have given me post approval is slightly higher (roughly £300 extra over the term).

So questions:
1 - is there a way to challenge the rate?n
2 - is there any benefit in applying to other providers vs the risk of leaving hard footprints on my credit file?

For info - I have a good credit score and good income.

Thanks in advance - Kris

1. No. And you must be only 1% off the minimum rate they quote anyway.
2. No idea. What would the downside of leaving "hard footprints" on your credit file actually be for you ?

foxy-stoat

If this is your first loan then either take it and buy your new car and enjoy it or buy a cheaper car.

The rate they have offered you is around 5.1 or 5.2% so its not bad at all.

Gunther_Golf

For the sake of £300 over a 3 year term on £10k borrowing i would not be at all upset by this.

Your talking about £8 a month - Two pints down the local or a large glass of wine in a restaurant.

andyfromotley

Gunther_Golf wrote: »

For the sake of £300 over a 3 year term on £10k borrowing i would not be at all upset by this.

Your talking about £8 a month - Two pints down the local or a large glass of wine in a restaurant.

i completely disagree with this!! Hunt down the very best rate that you can. for the sake of about half an hours work you may save yourself £300 or more!! Who cares aboput leaaving a hard search on your credit history?? You are shopping around for the best loan - nothing wrong with that.

System

If you put the loan into the FTSE you'll be Quid's in

foxy-stoat

andyfromotley wrote: »

i completely disagree with this!! Hunt down the very best rate that you can. for the sake of about half an hours work you may save yourself £300 or more!! Who cares aboput leaaving a hard search on your credit history?? You are shopping around for the best loan - nothing wrong with that.

If the OP is dropping £10,000 on a secondhand car then saving £300 over the next years is a little insignificant.

System

Perhaps but shopping around is easier than working to earn the equivalent £300 for me anyway