Loan for Car

NOVAMET21

Hi


I bought a car back in 2014 with hire purchase at 0% APR for the first 3 years. The end date for the finance will be around Apr-May 2017 and the outstanding balance to pay will be £4,159.


Not sure how much APR % Honda charge. I think it is either 5.9% or 9.9% APR after talking to the operator. Could I get a better APR% in comparison site and are all the lender safe to borrow the money from? I usually like to borrow from well known company.


So, I have got an option to either finance with Honda or take a loan out from somewhere else and pay Honda off. If Honda offers me 5.9% APR then I would be happy to go with them but 9.9% looks very high.


Any suggestions?

[Deleted User]

Find out the rate. You're probably quoting both flat rate and APR above.

If you can finance cheaper, then you may want to do so. That will be down to your circumstances though.

MrsTinks

Car finance is renowned for quoting you flat rate and not APR so to compare like for like insist on any quote from them being APR

As for safe lenders - you're the one borrowing money, not lending it But check out any recommended by the MSE tools - they should all be legit

jonesMUFCforever

You won't get the very best rates if you only want to borrow £4159.
Most lenders keep the best rates for loans of £7500 and above.

downhillfast

Depending on how long you intend to take to pay off this amount then rather than take a loan out it may be better to look at a 'money transfer' credit card - there are a few good deals to be had where you could get 0% APR (plus a one off transfer fee which can be anything from 0-3%)

tidds

Also, surely if there is a balloon payment it's PCP not HP? I know not hugely relevant, but it's important to know which financial product you have.

NOVAMET21

tidds wrote: »

Also, surely if there is a balloon payment it's PCP not HP? I know not hugely relevant, but it's important to know which financial product you have.

Good point actually. Looking at the description it looks like I have got PCP rather than HP.


I thought it was HP as it was written Hire Purchase on the cover my folder with documents inside. Maybe they use the same folder for both.

sivs

Can you not get a money transfer credit card. Pay off the outstanding balance with this and then pay what you can and what is left after the 26 months can be transferred on on BT credit card.

This was you will not pay an interest at all.

Only a thought and what I would think of doing

YorkshireBoy

downhillfast wrote: »

...look at a 'money transfer' credit card - there are a few good deals to be had where you could get 0% APR (plus a one off transfer fee which can be anything from 0-3%)

A 0% Money Transfer card with the added bonus of a 0% money transfer fee? Where from please?

MallyGirl

there isn't one.

latest deals can be found here:

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs#lowfee

YorkshireBoy

MallyGirl wrote: »

there isn't one.

latest deals can be found here:

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs#lowfee

Yes I'd checked that, and the MBNA & Virgin sites, before posting. I didn't think there was, but just wanted to make sure. Maybe the poster is aware of something that this site, Virgin, and MBNA haven't got listed on their websites. Maybe a special on a comparison website or something?

It's been a long time since fee-free MT cards were available hasn't it? I personally remember having them with MBNA & Egg from 2005/06, but anything since that I've forgotten?