Advice for used car loan

pkalra

Hi,

I am planning to buy a used car costing around £15,000. I would like to go for a loan. My credit rating is too class about 930 on Experian.

What are my cheapest options?

StopIt

As I can't link here yet, look up a bit. There's a loan eligibility calculator on this very site. That'll be a good start.


Also, your Experian score is totally useless but the information within it will be of use to the lender.


Are you in any debt? Have you any defaults, etc on your file? What would this £15k loan mean to your debt/income ratio? That's the sort of things that influence lending decisions, not however many points a CRA gives you.

foxy-stoat

pkalra wrote: »

Hi,

I am planning to buy a used car costing around £15,000. I would like to go for a loan. My credit rating is too class about 930 on Experian.

What are my cheapest options?

Cheapest options are either a personal loan with a head line rate or find the lowest rate HP finance at a motor dealer.


Good luck and keep up updated.

AlistairM

Depends what your income is and the length of the loan. I got 3.3% loan from Halifax for £18K over 7 years (a long time I know, I'm paranoid about repayments).

I did try Sainsburys as they advertised a rate of 3% but offered 15% in the end so don't waist your time with them.

[Deleted User]

AlistairM wrote: »

I did try Sainsburys as they advertised a rate of 3% but offered 15% in the end so don't waist your time with them.

Not great advice, if the OP meets their criteria for the 3% rate.

Pixie5740

AlistairM wrote: »

Depends what your income is and the length of the loan. I got 3.3% loan from Halifax for £18K over 7 years (a long time I know, I'm paranoid about repayments).

I did try Sainsburys as they advertised a rate of 3% but offered 15% in the end so don't waist your time with them.

Sainsburys do not advertise a rate of 3%. Sainsburys advertise a representative APR of 2.9%. The "representative" part is important.

The landing page for Sainsburys loans even says, in large letters I might add, "We treat all our customers and their applications in an individual basis. At least 51% of accepted loan applicants will be offered the Representative APR advertised for the particular loan amount and term, or a lesser APR. All other accepted applications will be offered a higher rate. The APR we offer is determined by the details you supply and the loan you are applying for, along with an independent verification of your credit and repayment history and will range from 3.0% to 22.8% APR."

AlistairM

Deleted_User wrote: »

Not great advice, if the OP meets their criteria for the 3% rate.

If you look at the reviews about Sainsbury's the rate you receive doesn't really seem to relate to your circumstances. I have a perfect credit rating and gave me that rate. I understand they don't have to give the rate to more than 51% of applicants but 5 times the interest rate strikes me as a bit shoddy.

When Sainsbury's called me up to ask why I wasn't accepting their loan they offered the 3% rate straight away so based on my experience and their reviews I wouldn't recommend using them.

Halifax on the other hand was easy and did as they said.

Shakin_Steve

AlistairM wrote: »

If you look at the reviews about Sainsbury's the rate you receive doesn't really seem to relate to your circumstances. I have a perfect credit rating and gave me that rate. I understand they don't have to give the rate to more than 51% of applicants but 5 times the interest rate strikes me as a bit shoddy.

When Sainsbury's called me up to ask why I wasn't accepting their loan they offered the 3% rate straight away so based on my experience and their reviews I wouldn't recommend using them.

Halifax on the other hand was easy and did as they said.

You were offered a loan at 3%, what's the beef?