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Bit of a pain buying a car...
Long story so please bear with me...
Saw a car I liked for £6500 so applied for a loan for £7500 with nationwide as get a better APR at £7500 than £6500, was intending to pay the extra £1000 straight off the loan - turns out the car could not be supplied as described by the seller ( a used car seller) due to the manufacturer being unable to quickly fix a problem with the keys/locks. As I was aware they may be a delay in getting it I hadn't actually had the money transferred over from nationwide as I was supposed to go into the bank to get the docs signed up as the online system was playing up when I first applied so the Nationwide operator did it all for me and sent me the docs. I have since spoken to nationwide and at my request they have cancelled the application, the operator I spoke to said there are no issues regarding what I have done as no money was ever given to me and it was all cancelled at my request.
So, I am still looking for a new car, but have increased my budget considerably to £15000, I don't imagine there will be an issue getting that as I fulfil all of Nationwide's criteria - £400,000 house with a £5,500 mortgage, savings and current account with them etc. I have no other debt at all, perfect credit history. So don't envisage there being an issue with a new loan.
Anyway, finally onto my quandary - in an ideal world I would be able to walk into a dealership and buy the car on my credit card and then get the loan afterwards to pay the card off, but I imagine this would be seen as 'debt consolidation' and is not a good thing! But I don't want to get a loan sorted for £15,000 only to find a car for £10000 that I really like - I know I could use the spare money to pay a chunk off the loan immediately but would really like to only borrow what I need.
So how do other people deal with this sort of thing? I don't want to get finance with a dealership as their rates are not as good as the 2.9% nationwide offer so I am kind of stuck with the bank. I don't really want to make another application in advance of finding a car as I believe they are only valid for 30 days without the money actually being transferred and there is no guarantee I will find a car in that time and will be back to exactly where I am now! On the other hand although everything on the Nationwide website says I will be able to get a loan for that amount you don't actually know until you apply and would hate to find a car and for some odd reason not be able to get the loan sorted.
Any opinions greatly appreciated - I may be overthinking it all but am very 'debt-averse' - my last few cars have all been brand new on 0% but this time want a bigger and more 'premium' vehicle and don't want to spend £35,000!
Saw a car I liked for £6500 so applied for a loan for £7500 with nationwide as get a better APR at £7500 than £6500, was intending to pay the extra £1000 straight off the loan - turns out the car could not be supplied as described by the seller ( a used car seller) due to the manufacturer being unable to quickly fix a problem with the keys/locks. As I was aware they may be a delay in getting it I hadn't actually had the money transferred over from nationwide as I was supposed to go into the bank to get the docs signed up as the online system was playing up when I first applied so the Nationwide operator did it all for me and sent me the docs. I have since spoken to nationwide and at my request they have cancelled the application, the operator I spoke to said there are no issues regarding what I have done as no money was ever given to me and it was all cancelled at my request.
So, I am still looking for a new car, but have increased my budget considerably to £15000, I don't imagine there will be an issue getting that as I fulfil all of Nationwide's criteria - £400,000 house with a £5,500 mortgage, savings and current account with them etc. I have no other debt at all, perfect credit history. So don't envisage there being an issue with a new loan.
Anyway, finally onto my quandary - in an ideal world I would be able to walk into a dealership and buy the car on my credit card and then get the loan afterwards to pay the card off, but I imagine this would be seen as 'debt consolidation' and is not a good thing! But I don't want to get a loan sorted for £15,000 only to find a car for £10000 that I really like - I know I could use the spare money to pay a chunk off the loan immediately but would really like to only borrow what I need.
So how do other people deal with this sort of thing? I don't want to get finance with a dealership as their rates are not as good as the 2.9% nationwide offer so I am kind of stuck with the bank. I don't really want to make another application in advance of finding a car as I believe they are only valid for 30 days without the money actually being transferred and there is no guarantee I will find a car in that time and will be back to exactly where I am now! On the other hand although everything on the Nationwide website says I will be able to get a loan for that amount you don't actually know until you apply and would hate to find a car and for some odd reason not be able to get the loan sorted.
Any opinions greatly appreciated - I may be overthinking it all but am very 'debt-averse' - my last few cars have all been brand new on 0% but this time want a bigger and more 'premium' vehicle and don't want to spend £35,000!
Mortgage free!
Debt free!
And now I am retired - all the time in the world!!
Debt free!
And now I am retired - all the time in the world!!
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Comments
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Does the dealership allow card payments for the full amount? It would be very unusual.
Find the car you want and then sort out financing. I'd better, just buy it from savings.1 -
Deleted_User said:Does the dealership allow card payments for the full amount? It would be very unusual.
Find the car you want and then sort out financing. I'd better, just buy it from savings.
Find the car and sort the finances is the obvious, most sensible option but until I have the money sat in my account I don't really want to look for a car 'just in case'.
Im overthinking it all - its funny how many years ago when I was less careful with money I would have just taken the dealers rate to make things simple but now after years of sorting my finances out I have gone totally the other way and don't want to take any risks whatsoever...
Mortgage free!
Debt free!
And now I am retired - all the time in the world!!0 -
chubsta said:Deleted_User said:Does the dealership allow card payments for the full amount? It would be very unusual.
Find the car you want and then sort out financing. I'd better, just buy it from savings.
Find the car and sort the finances is the obvious, most sensible option but until I have the money sat in my account I don't really want to look for a car 'just in case'.
Im overthinking it all - its funny how many years ago when I was less careful with money I would have just taken the dealers rate to make things simple but now after years of sorting my finances out I have gone totally the other way and don't want to take any risks whatsoever...
If it were me I would look at the prices of the model/spec etc you want, find out what the 'ballpark' figure is, get the finance put into place then go shopping. It took me over 3 months to find the 'right' car I wanted and I had the finance in place about 2 weeks before I finally bought it. Worked out great apart from an unforeseen minor niggle with suspension but It stands me around 9K now and they are still being advertised for 11-13K. Putting all that waffle to one side, advice is do your homework, the finance however you get it is actually only a small part in the whole process.0 -
Deleted_User said:Does the dealership allow card payments for the full amount? It would be very unusual.
Find the car you want and then sort out financing. I'd better, just buy it from savings.0 -
If dealers accept credit cards, can they refuse to accept full payment via them?
I know that I bought my last two caravans with my credit cards in the first instance without a problem."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
Yes, they can put a limit on the amount they accept.0
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My last 2 cars wouldn't take more than £2k on a credit cardI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
How would I deal with this sort of thing? Buy the car for cash!
What would I do in this position and have done in the past? Look for rough prices of what I want and get the finance sorted (bank loan). Then go look for the car. Any surplus from the loan, I would instantly repay.
Alternatively, pay a deposit from savings \ credit card once you've chosen the exact vehicle you want, THEN sort out the loan for the exact amount outstanding. Most dealers will require a short time to prepare the vehicle for you (service it, clean it up, that sort of thing) giving you ample time to get the loan in place.0 -
Just a warning you may not get the rate you got on the previous loan. So don't take it as gospel.
Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £58,108
Cc around 8k.0 -
well, all sorted - spoke to the nationwide in the morning, who agreed with you lot that it is better to find the car and then get the loan sorted - he couldn't tell me if I would be able to get the amount I needed but given my circumstances said that it was likely. Went out looking for cars to compare the different models I was looking at and managed to find one which was just what I was looking for and within my anticipated budget.
This is where it got a bit surprising as I left the showroom, went to my car and by using the banking app less than five minutes later had a £15,000 loan! The convenience of doing it that way was great, but I grew up in a time where if you wanted to have a loan for anything you almost had to beg the bank manager, who would ask questions about what it was for and expect you to have saved up at least a proportion of the purchase price yourself before asking for a loan - I cannot believe just how easy it is to get into debt these days, a few clicks and that is it, I can see how people may have problems if they don't have self control.
The interest rate was still 2.9% but I was able to spread the payments over 84 months instead of the 60 that was the maximum for the £7500 loan I initially went for - it seems like a long time but is basically giving me lower payments for the first few months whilst I overpay and finish my mortgage and then I can overpay like mad on the loan and hopefully have it paid off in under 18 months.
So, once again, thanks for the advice and I am sure you will be pleased to know I followed it and everything seems to have worked out fine!
BTW - the limit for payments on CC in this case is £1000, I am paying the rest via debit card so the advice above on that was correct too...Mortgage free!
Debt free!
And now I am retired - all the time in the world!!1
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