Buying a Car, money advice

[Jez]

By the sounds of it definately in the right job!

You even managed for a moment to make finance sound appealing to me, which is rather hard to do as i think borrowing money is down right stupid for anything other than a house!

 

[TripleT]

"Hello Mr Eskimo, would like to purchase some of this wonderful snow?"

 

[Maz]

What I would do if I was in OP situation is,

Borrow £8k over 2-3 years whatever payment your comfortable with and pay the £3.5k difference cash/as a deposit.

Make sure you get a VERY good rate, easier to do through a dealer than through a Bank trust me I've tryed it.

Lowest anyone can offer you at the moment *I THINK* is about 2.95% flat which is 1.55% lower than Bank of Englands base rate.

To get this rate basically just tell them that Honest Johns dodgy motors will do it at that rate and you wan't them to do the same to do a deal RIGHT NOW.

Put the cash you have left over into a high interest savings account such as ING so your money in your Bank is making enough money to cover the interest that your paying.

Quids in?

 

[eidolon]

Lowest anyone can offer you at the moment *I THINK* is about 2.95% flat which is 1.55% lower than Bank of Englands base rate.

Who/How do you get a rate that low? Surely if you go into the dealers and say you can get 2.95% elsewhere they're gonna tell you to go elsewhere as that's such a low figure it won't be worth it for them

 

[Nozzer]

Who/How do you get a rate that low? Surely if you go into the dealers and say you can get 2.95% elsewhere they're gonna tell you to go elsewhere as that's such a low figure it won't be worth it for them

They'll just stiff up some poor bird at 20% later in the day.

 

[Maz]

Who/How do you get a rate that low? Surely if you go into the dealers and say you can get 2.95% elsewhere they're gonna tell you to go elsewhere as that's such a low figure it won't be worth it for them

I know Capital Bank are offering rates that low, I mean they make no commision on that but they don't make a loss.

This is a flat rate, as opposed to an APR.

Basically if you've spent 2 hours with the guy and you pretty much have a good understanding with each other, he will be keen to sell the car you will be keen to buy the car.

He'll do as much as he can to sell it.

Personally I'm a lazy salesman and call everyones bluff.

 

[Maz]

A fair rate to aim for is about 4% flat.

 

[daz]

Who/How do you get a rate that low? Surely if you go into the dealers and say you can get 2.95% elsewhere they're gonna tell you to go elsewhere as that's such a low figure it won't be worth it for them

It's an artificially low rate, designed to look more appealing to a certain customer.

Instead of charging say £8000 + 10% APR, they go for £9000 plus 3%.
The customer carries the cost somewhere down the line.

Also, getting people tied into a 3 year finance PCP thingmajig also gets people accustomed to new cars and into the cycle of using finance and a certain dealership.

 

[Maz]

It's an artificially low rate, designed to look more appealing to a certain customer.

Instead of charging say £8000 + 10% APR, they go for £9000 plus 3%.
The customer carries the cost somewhere down the line.

Also, getting people tied into a 3 year finance PCP thingmajig also gets people accustomed to new cars and into the cycle of using finance and a certain dealership.

Not necessarily true, you can get these rates with used cars.

With a PCP you are NOT tied into any one manufacturer or any one dealer.

You could buy a Ford on PCP and then after 3 years swap it for a Ferrari, nothing to stop you doing that.

 

[daz]

With a PCP you are NOT tied into any one manufacturer or any one dealer.

Of course not, but it gets you through the door once thus if the experience was a positive one will hopefully get you through again.