Toyota Financial Services

Tallulah_Chicken

Hello,

I'm looking to buy a new car (my first ever!!) and I am in a bit of a dither about the best way to finance it - I was hoping that some of you nice people might be able to help me out with a bit of insider knowledge!!

I currently have a loan with Egg at 7.9% @£350 a month with £9800 outstanding. It will be cleared June 2010 (although I often make overpayments).

I also have £10,000 savings. All very simple so far, but I would like to buy a new car and got a quote for a Yaris at the weekend. My original plan was to use my savings to pay off the egg loan and get another cheaper loan for the car. However Toyota have a 0% finance deal at the moment and so it makes more sense to get it with them and pay off the egg loan, but I am a bit worried that with such a large outstanding loan (albeit one I can pay off straight away) I will fail their credit check.

I earn about £25000 a year and only pay £250 a month towards mortgage/bills (I have a lovely OH who is richer than I am!!) so I do have the cash to pay it. Tesco have already approved a loan for £10,000 @ 6.6%.

I know it sounds silly, but I don't want to embarrass myself and the OH at the showroom next weekend by getting turned down... can anyone help?

jonesMUFCforever

If you are paying cash (which in effect you would be doing if paying with someone else's loan and not Toyota finance) then you may be able to get a discount off the list price.
If you take their finance you will not be able to get a discount.
There is nothing for free - if they are offering a 0% deal you are paying for it in a higher list price.

The message is haggle haggle and haggle some more.

nomoneytoday

I would pay off the loan with your savings straight away, as you are not earning 7.9% on them.

Then go to the dealer and ask for best deal and 0% on it.

If they say no then borrow the tesco cash at 6.6% APR and go to Broadspeed.com (or similar) where a Yaris will cost you about £1000 less