FlightMan

Do garages do finance on 2d hand cars? Looking to pickup a 2nd hand Mondeo, between 8 and 10k, from a Ford main dealer. Would they do finace on such a car?

Cheers.

ScoobyDoo555

Of course. A sale is a sale.
However, shop around (car loan etc), as garages tend to cook the interest in their own favour....

Dan

pslewis

Of course they would!! They make more money on the Finance deal than the car!!

A word of advice .... if they say it's 'only' 9.9% interest - ask what the APR is as it will be DOUBLE that!!

Ask the Bank what a loan will cost you per month for what you want and tell the garage that is what they have to match .... they will match it!

HOT TIP ............ do NOT pay their 'set-up' fee, may be called 'arrangement' fee!! And don't let them tell you that the Finance company charges them it!! It's their up-front payment for setting up the loan!!

Pete

AudiLover

Yeah Id try your bank first of all.

FlightMan

Cheers all, will give the bank a go first.

imlach

Don't get caught out by the oldest trick in the car dealer's finance book....if you ask what the interest rate is, he'll no doubt quote you something like 7% to make it sound competitive with banks etc....but BEWARE, this will probably be the "flat rate" which is not at all like the APR that the banks have to quote.

A flat rate of 7% is more like 14% APR.

If you have a good credit history, then try places like www.cahoot.com where you should get 6% APR or so for an unsecured car loan.

ewanrw

Do not get a personal loan (from your bank etc) as this is secured against you and you have to pay back every penny. If you fall behind on your payments, everything you own is at risk of reposession - car , house etc

Use the Finance from the dealer and take it over no more than 5 years as this is a motor loan and secured against the car. With a motor loan , you can hand the car back after you have paid half the outstanding balance (called a Voluntary Termination). The dealer has to explain this to you and it is under the section titled "Halves and Thirds".

Yes the interest rate might be slightly higher but it has other advantages too (Reg Vardy can do a FLAT rate of about 5% - APR 10%, sounds high but is hard to beat) . If you get a personal loan for £10k, it uses up £10k of your personal credit limit. If you get a motor loan, it'll use up 1 years worth of payments from your personal credit helping to keep your credit score good. Means you are still able to take a personal loan for home improvemnets etc

Also, it means that if you fall behind on your payments ONLY the car is at risk and if you have paid more than a third of the outstanding balance, a court order is needed to reposess it. If you have paid less, bailiffs can turn up and take the car without warning (England only, they need a court order in Scotland regardless of how much you have paid back)

And I disagree with pslewis about the arrangement fee as it is set by the finance company. The arrangement fee will generally be about £150 but can be less or more depending on the finance company. Most big dealers use several different finance companies and the arrangement fee is set by them and is included on your credit agreement. Again they have to explain this. There will also be an additional final payment, usually £99 but can vary depending on finance company.

These additional fees do go to the finance company.

Can you tell I was a Sales Exec until recently ?

ewan

imlach

Interesting.

However, a personal loan is STILL cheaper overall....so if you're normally someone who doesn't default or fall behind on credit, the bank will still cost you less over the course of the loan.

You have to judge it on your own individual circumstances.

ewanrw

You gotta make the decision, but for a few £s more, I'd rather a bit more security.

Arrangement fees etc are there with all agreements so you're gonna be paying them anyway.

ewan

imlach

To give you an illustration :

Borrowing £10k over 5 years (60 months).

Cahoot offers 5.6% APR - monthly repayment = £190.83; total repayable = £11500.

Reg Vardy @ 10% APR - montly repayment = £212.00; total repayable = £12720.

An extra £1220 in interest over 5 years.

pslewis

When I take a draw-down on my Mortgage I pay NO arrangement Fee AND pay interest at the Mortgage Rate ..........

If take a personal loan out, there is no arrangement fee and they can be had for 6% APR ........

Car dealers want a MINIMUM of 9.9% APR AND a FEE!! I'd tell them to shove their finance!!

Pete

Richard_P

If you take a draw down on your mortgage and buy a car with the money you must have to lie to the bank

Who've you got your mortgage with PS?

john banks

I was offered 2.95% flat rate (6.2% APR once it had the £50+£125 charges) from a franchised BMW dealer recently on a 3 year hire purchase.

Some mortgages allow you to take money back from your overpayments or borrow again up to a certain LTV without much fuss, but you need discipline with this flexibility. I've had Egg and Virgin mortgages like this (although the rate on the latter was a bit high).

Trout

iTrader: (1)

Great information - however I do not believe that your house can be taken in an unsecured loan default. They certainly can take anything in it if the bailiffs come around - except the house.

Your house can only be taken for a secured loan default.

A secured loan will typically be the cheapest - however it is against your house - not the most sensible route.

Rannoch

KiwiGTI

Absolute rubbish.

If you don't pay you will be taken to court and a judgement will be made against you, then bailiffs might come but they still have no right to touch your house or enter your property to take anything unless you invite them into your house.

Repossession can only be done when the lender has an interest in the item such as a mortgage or HP etc.

ewanrw

With my mortgage, there are no up front arrangement fees etc, but if you read thru' all the small print etc, there is an arrangement fee, but it is added on at the end and a small portion of your monthly payment goes toward it.

And as for 6% APR, if you can get it, go for it. But a recent survey shows that only about 4% of people qualify for the advertised target rate. The average rate is usually something between 9 - 12% APR. And credit cards are going this way too.

ewan

ben44

Strange why someone with so much cash would want to, or even think about doing that Is this a sign that you've turned a corner? Has starting to admit your problems helped?

john banks

ewan, can you reference this recent survey?

It only 4% of people qualify for the rate advertised when it should be 66% then they are in breach of Section 3 of the following:

http://www.oft.gov.uk/NR/rdonlyres/3...9/0/oft746.pdf

New_scooby_04

iTrader: (4)

I'm not sure that's strictly true mate. I think the rule has something to do with "crossing the threshold", i.e. they step over your doorstep. This is why they send big men around, you answer the door, one of them immediately steps over the doorstep, then that's it- they're legally entitled to be there. Under certain circumstances -and with the appropriate paperwork- they are also allowed to gain entrace to your property without you opening the door.....nothing quite so dramatic as breaking the door down, but they can call a locksmith!

Ns04

KiwiGTI

They really have to be invited in, if the police were then called and you said that you didn't want them in your house they would side with the tenant.

The only time bailiffs may enter your house without your permission is when they are working on behalf of Inland Revenue.

In any case the majority of people pay their debts and a personal loan would be the cheapest option and definitely the most flexible when it comes to selling and rebuying (I don't believe it affects your credit rating anyway)

ewanrw

Sorry bud, can't remeber. It was a survey/study that I found on my desk at work. It was really quite interesting. They surveyed/studied 5 or 6 of the banks that offer cheap APRs and how many people were offered the target rate and what the average rates were and what type of people got the target rate.

Cahoot cameout well me thinks and Egg were not too bad either.

ewan

ewanrw

Sorry bud, can't remeber. It was a survey/study that I found on my desk at work. It was really quite interesting. They surveyed/studied 5 or 6 of the banks that offer cheap APRs and how many people were offered the target rate and what the average rates were and what type of people got the target rate.

Cahoot cameout well me thinks and Egg were not too bad either.

ewan

Spoon

Bailiffs, assuming all paperwork is in order, can enter your property without your permission. They can even 'break in' to gain access.

Vegescoob

Alliance and Leicester, online Moneybackbank.
Mrs. Vegescoob just got 5.5% APR, unsecured.
No arrangement fee, one month interest penalty for early settlement. Remember loan is front end loaded though.
They will try the hard sell on insurances though.
For car, 7 months old ex demo Micra 160SR.
Snip at £6995.

KiwiGTI

Only when the debt if for the Inland Revenue.

The Bailiffs Rights of Entry

The Bailiff cannot force entry into a domestic property. The bailiff can walk through an open door, an unlocked door, or go through an open window. The Bailiff can force entry and seize goods if a debtor defaults on a Walking Possession Agreement (see below). A Walking Possession Agreement can only be made after peaceful entry.

pslewis

You clearly don't know what you are talking about! Funds can be put to any use whatsoever!

Pete

Spoon

After a walking Possession Order is ignored a bailiff can enter a domestic property by force.

This was highlighted on a recent debt programme on BBC1 in the morning too.

pslewis

I can draw-down to stag shares ........ I won't go into details as you clearly wouldn't understand

Some on here worry me, you are the future and it doesn't look too bloody clever from where I sit ......... are us old folk really so superior in common sense? I fear that the kiddies these days haven't a clue whats going on!

Pete

ewanrw

Yeah, us young-ins workin to 75 to keep you old codgers in nappies

I wonder if Flightman has bought a car yet ? after all this is what the thread is about

ewan

KiwiGTI

But to get a walking possession order the bailiff must have previously gained entry to the property by peacefully entering.