Car Loan, 14% with Hitachi.

PLuKE1986

Hi folks.

I applied for a car loan, with Hitachi Finance for £9500 over 60months, there APR rate was 3%.

I applied, was accepted, but a rate of 14%.

Is there any other companies you guys can recommend, I have only tried one application, and thought there might be better rates out there, as 14% seems high!

Many thanks
Luke

Cakeguts

There are better rates. You buy a used car.

PLuKE1986

Its a used car yes.

I know a representative APR, and what you actually get are different, I just thought a Representative APR of 3%, for it to then jump to 14% was quite large.

Will this happen with other banks/companies too?

Many thanks
Luke

DCFC79

Go for a cheaper used car eg £6/7000, get the min amount for a loan eg £7500.

PLuKE1986

Thanks, but I am just looking for information and recommendations on loans.

Thanks
Luke

BoGoF

What rate you actually get will depend on various factors such as income and existing debt levels. Being offered 14% would suggest less than perfect credit file

PLuKE1986

I have been reading, and some people, mainly with Sainsbury's loans ring them to see if they can get a lower rate APR, would this be possible with somebody like Hitachi? or would that be a stupid move?

Many thanks
Luke

YorkshireBoy

Surely the best people to approach would be your current account provider? After all, they're the ones who know more about your financial circumstances than anyone, being as they see your salary and how you manage your finances.

bearcat16

Your own bank is always a good place to start because they will often be able to make an offer without doing a full credit check (true of Nationwide and Halifax as far as I know).

Also they will often put the funds in your account quickly (within 10 mins of approval for Halifax)

However, don’t bother with that if you have less than perfect (recent) history with them, and be aware you could fall foul of appropriation if you fall behind on loan repayments. (Where the bank helps itself to the money in your other accounts if you defaulr)

Other lenders I’ve had good rates from include Tesco ~4% sainsburys and Barclays.

elle_may

PLuKE1986 wrote: »

I have been reading, and some people, mainly with Sainsbury's loans ring them to see if they can get a lower rate APR, would this be possible with somebody like Hitachi? or would that be a stupid move?

Many thanks
Luke

Husband got car loan at 12%.Rang Sainsbury told them how stupid he was and would they loan us the amount instead. After checks offered 3% for 5000, we already had a loan running with them and they said we could run it along side of it as we only had 6mth left on it. I have found them to be very good to talk to as long as you are honest with them.

DCFC79

PLuKE1986 wrote: »

Thanks, but I am just looking for information and recommendations on loans.

Thanks
Luke

Each persons circumstances are different so 1 lender will be ok to lend to me but offer you a higher rate or even reject you as a customer and vice versa.