Car finance handing me a loan on a plate....

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Legacy_user
Legacy_user Posts: 0 Newbie
in Loans
Just trying to abe extra cautious before I consider a loan from this particular firm...

So basically I have a bit of adverse history but we are desperate to replace our old car before it conks out completely. I enquired with a rather well known car finance broker who found me a deal straight away. The rate was horrendous however so I parked the idea. They've called me back a week later and said they've found a much better deal. Still not main stream rates but almost half less than the firstborn rate, affordable repayments and zero deposit.

Why am I getting car finance handed to me on a plate when I can't even get a credit card at the moment?? Are these scams or is it just because it's high interest rate? Is there a clause that I need to know about? Any advice would be greatly appreciated as I'm a bit wary at the moment. A friend said it's easier to get a car on finance than a mobile phone contract these days.
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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    MissSJL wrote: »
    Why am I getting car finance handed to me on a plate when I can't even get a credit card at the moment??
    The car finance provider will repossess the car if you default/fall behind with payments.

    What will the credit card company repossess if you fall behind with your payments?

    In other words, you're not comparing like with like. One is 'secured' lending, whereas the other is 'unsecured' lending.
  • System
    System Posts: 178,101 Community Admin
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    Thanks for your reply. Well that seems straight forward enough, I'd expect to lose the car if I didn't pay for it. I don't think I'd get accepted by a dealer though would I? Such as Vauxhall or Ford if I went directly.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    What's the APR?
  • System
    System Posts: 178,101 Community Admin
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    New deal is 17%. First deal was 32%!!
  • Nebulous2
    Nebulous2 Posts: 5,130 Forumite
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    Some car loans are tied to overpriced cars from specific places, so you could be paying quite a bit more than 17% when you factor that in.

    The only way to know if you would be accepted for manufacturer finance is to try. A decent deposit would help.
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
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    Are you comparing APR to APR? A common "trick" in the car industry is to quote flat rate, which is roughly half the APR value. 17% interest could be flat rate which would be almost identical to your first finance quote.
    Thinking critically since 1996....
  • System
    System Posts: 178,101 Community Admin
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    Oh I'm not sure to be honest. I was looking at the monthly payments and the total paid back over the term and it was a lot less.
  • AndyPix
    AndyPix Posts: 4,847 Forumite
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    As mentioned above, ensure you are able to pick your car from the garage of your choosing.


    Companies such as fowlers etc wil lend to anyone,but you have to buy from them and they sell cars fresh from auction, that are falling apart, for 10x their value
  • System
    System Posts: 178,101 Community Admin
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    Yes I can choose my own dealership, they have a requirement however that they have 20+ cars for sale and that the car is under x amount of miles. But they seem like legitimate conditions.
  • TrustyOven
    TrustyOven Posts: 746 Forumite
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    What's wrong with your current car?

    Why not actually fix it?
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