Audi owners in here!
- Thread starter GinG
- Start date
Just jumping onto this as I recently re-financed my car with oracle for 5.6% which after trying a few brokers was the best deal I could get..... I tried the usual suspects of tescos et al but they seem to rarely provide the headline rate. Before you ask my credit file is stellar. I just think theres a major difference between what the advert says and what you will end up with, and thats before you consider VT, balloons, monthlies etc etc.
I think when buying any car, used or not; consider seriously how long you will keep it and go from there. If this is a 2 year buy, get bored sell kinda scenario then its basically a rental and little point throwing large deposits into it and building some kind of equity is pretty pointless. If this is car your keeping long term then you need to build equity as fast as you can. Low APR, Low balloon/No balloon is the answer.
Like some of the others on here, dont like mixing up the boxes of roof over head and discretionary purchases......
I think when buying any car, used or not; consider seriously how long you will keep it and go from there. If this is a 2 year buy, get bored sell kinda scenario then its basically a rental and little point throwing large deposits into it and building some kind of equity is pretty pointless. If this is car your keeping long term then you need to build equity as fast as you can. Low APR, Low balloon/No balloon is the answer.
Like some of the others on here, dont like mixing up the boxes of roof over head and discretionary purchases......
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
How does it make any difference?
All that matters is the total cost of ownership over your intended period of ownership.
There is no getting away from the fact that the higher the rate and the more you borrow (IE, less equity) the more the TCO will be.
Soldato
- Joined
- 30 Sep 2005
- Posts
- 16,553
I'll bow out of this as this will just be a circle of yesterday.
"The rate is bad, use a house as security and it will be much cheaper, as it is a secure asset"
"I dont want to use my house i'd rather pay more"
"You really should unless you genuinely think default is a possibility"
"This is the best rate that i can get secured against this asset"
"so dont use that asset"
Round and round
What does it matter what people do, all you can do is advise them that really they could save some money if they did structure it in a better way 
"The rate is bad, use a house as security and it will be much cheaper, as it is a secure asset"
"I dont want to use my house i'd rather pay more"
"You really should unless you genuinely think default is a possibility"
"This is the best rate that i can get secured against this asset"
"so dont use that asset"
Round and round
What does it matter what people do, all you can do is advise them that really they could save some money if they did structure it in a better way I'll bow out of this as this will just be a circle of yesterday.
"The rate is bad, use your house as security and it will be much cheaper, as it is a secure asset"
"I dont want to use my house i'd rather pay more"
"You really should unless you genuinely think default is a possibility"
"This is the best rate that i can get secured against this asset"
"so dont use that asset"
Round and round
What are the best rates you've seen for car finance recently? The best I could find advertised was 2.8% but the amount wouldn't get you into much beyond a supermini.
You're missing the point with that question - the point is that car finance generally sucks. You probably won't find a better rate on second hand car finance - because second hand car finance is an awful product where the only winners are the dealers and lenders.
Hence why the view on the other side of this is don't use car finance to fund a used car, find another way
Hence why the view on the other side of this is don't use car finance to fund a used car, find another way
Soldato
- Joined
- 30 Sep 2005
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- 16,553
I think the overall conversation yesterday ended up like:
you don't want a rate over 2%, yet failed to post any deals offering anything lower
people moaned about the pcp rate, said a broker could better it (phoned three brokers, neither could get close)
get a loan secured against your house as the rates will be really low (when I looked, it was 2.99% for 3yrs, then 3.59% variable)
I ended up looking at all sorts, and think the best would be a tesco loan at 2.9% (if you get offered the headline rate of course), people moaned about that.....but nobody posted anything better
Not sure anyone actually posted a link to either a loan, or a site offering secured loans at anything under what I found myself
Everyone who did post what deals they were on, were all over 5% and was met with ridicule
My credit score is 999 with very low levels of debt (in fact, other than a small mortgage I have no debt)
So to sum up, I think the advice was:
1. Buy the car cash
2. Switch your mortgage to a nationwide fixed rate at 1.59% and add on a secured loan and hope they also offer you it for 1.59% (pay ERC, setup fees, mrs being angry) <- if someone knows of another way to get a loan under 2% please shout!
I think I'm going to look at the tesco loan, with a split between loan and 0% credit card
Funny that people were very different who emailed me through the trust, than posted on here. I did get the feeling that a lot of people with cars were on high rates of interest, but maybe didn't want to post it on here
you don't want a rate over 2%, yet failed to post any deals offering anything lower
people moaned about the pcp rate, said a broker could better it (phoned three brokers, neither could get close)
get a loan secured against your house as the rates will be really low (when I looked, it was 2.99% for 3yrs, then 3.59% variable)
I ended up looking at all sorts, and think the best would be a tesco loan at 2.9% (if you get offered the headline rate of course), people moaned about that.....but nobody posted anything better
Not sure anyone actually posted a link to either a loan, or a site offering secured loans at anything under what I found myself
Everyone who did post what deals they were on, were all over 5% and was met with ridicule
My credit score is 999 with very low levels of debt (in fact, other than a small mortgage I have no debt)
So to sum up, I think the advice was:
1. Buy the car cash
2. Switch your mortgage to a nationwide fixed rate at 1.59% and add on a secured loan and hope they also offer you it for 1.59% (pay ERC, setup fees, mrs being angry) <- if someone knows of another way to get a loan under 2% please shout!
I think I'm going to look at the tesco loan, with a split between loan and 0% credit card
Funny that people were very different who emailed me through the trust, than posted on here. I did get the feeling that a lot of people with cars were on high rates of interest, but maybe didn't want to post it on here
You forgot the part where using the house/equity isn't an option for everyone.I'll bow out of this as this will just be a circle of yesterday.
"The rate is bad, use a house as security and it will be much cheaper, as it is a secure asset"
"I dont want to use my house i'd rather pay more"
"You really should unless you genuinely think default is a possibility"
"This is the best rate that i can get secured against this asset"
"so dont use that asset"
Round and round
The negative attitude towards finance on here is insane here sometimes, fair enough if it's not for you but no need to get all high and mighty about it and smite others for it, arguing that you're right and other people are wrong. Horses for courses, and all...
Soldato
- Joined
- 30 Sep 2005
- Posts
- 16,553
People are living in some uptopian world where they are buying cars which appreciate in value, financed through a company to offset tax. I'm not calling anyone out for that, in fact I've got a brand new audi etron on order for that very reason.
Most people are buying mainstream cars which depreciate, funded by a loan with interest charges.
The question wasn't supposed to be, is buying a car a good financial decision
My question was actually about the car in question, and like the financial advice, nobody posted a better speced car for less money...in fact, looking back a few pages, nobody has posted links to anything.I don't think a single person has said that other than Theophany who to be fair wasn't advocating that as a suggested option.
Man of Honour
This, people have generally been idiots on here over the years and had a daft attitude towards anyone who even dare ask about finance. Some of the comments in the last few pages are just baffling.
Not horses for courses at all, or any arguing involved, just plain facts and guidance which does not lead the requester down the unnecessarily expensive path of a poor financial product. It actually was an option in the context of this discussion.
Basher summed up my thoughts as to whether these are ever a good option, but that of course is absolutely up to individual.
I've been trying to avoid saying it but I'm just going to come out and say it
People PCP because its the only way they can drive the car they want. It's that simple. They are not interested in how the overall cost is far higher than any other method because to them its not relevant - it's either a BMW M4 on a PCP or its something far less impressive. That is the choice many end up making and its only natural they'll then try to paint a different picture when advocating borrowing at high interest rates for cars.
All the talk about the lowest rate on a used PCP is missing the point - the lowest rate is expensive. It's a product designed not to minimise cost of borrowing but to maximise your gearing when buying a car.
Perhaps I should get with the programme, I could maybe have had a year old M5 on a PCP instead of a diesel
It's nothing to do with not borrowing for a car - borrowing for a car is often very sensible and there are often very good ways to do it. Personally, I'd favour a sensible deposit with the rest topped up with a bank loan - but of course some won't want to do this as it won't get you into a 50 grand car...
There are, of course, exceptions to every rule. There are some occasions when a PCP makes sense.
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Out of curiosity, if you were aiming to ultimately purchase on a £38,000 car on a 7.7% PCP, £5k down, over 4yrs as was originally posted, plugging those numbers into a 'total cost' calculator suggests you'd be paying £9,000 in interest, a total cost of £47,000 for that £38,000 car. Is that right? I knew you got stung but damn that's a lot of money for 'nothing'.
Man of Honour
I've been trying to avoid saying it but I'm just going to come out and say it
People PCP because its the only way they can drive the car they want. It's that simple.
Absolute rubbish, and you're one of the worst people I was referring to in my post
Yes there are people who this applies to, but there is also a large percentage of those who would just rather not chuck tens of thousands of pounds in to a depreciating asset, especially if it's not one they plan on keeping for more than a couple of years. If I wanted to go and buy a brand new C63S (the car I want next) tomorrow in cash, I could comfortably. But I never would, and I think anyone that does is a moron, as I'd much rather invest that money and make it work for me, and get far more back than you'd pay in interest over the course of a 24-36 month term
If you pay the sort of interest that has been quoted earlier in this thread, the 11-12%, then yeah, bit silly. But the 5.4% Maccy quoted, that is hardly terrible
yeah it’s painful when you see it on paper