jef

iTrader: (13)

want a small loan for a car, (please no sellers spam this thread)

i know each goes by onw circumstances, but my own bank seems only to be able to offer me a rate of almost 3 times!!! what i can seem to get else where - is that the norm, if so why? or have i done something wrong inputting details?


again no contact from companies trying to sell please, just posters comments

thanks

PaulC72

I always check with my bank, then on something like confused to see what else is out there, if the rate my bank is offering is about the same I usually end up using them. If not I do the paperwork for the preferred company.

ScoobySteve69

iTrader: (13)

I`ve just borrowed £***** as a "home improvement loan" to buy my M3, from my mortgage company with the usual over payment option so that when I sell the Scoob I`ll pay back whatever I get for the car off the loan

Dingdongler

Hmmm, that sounds like a good idea.

jef

iTrader: (13)

but if im not mistaken my bank of 30 years and witha good history want almost 2 times the apr i can get from another loan comany?

does that sound rite. ok its a short term loan so the highest apr still wont amount to mass profits but the lower apr offered would sitill be less - and i understand its a short term loan

but is this the norm?

mart360

Is it there generic rate? or a rate for you...

if its a circumstances rate, then methinks you need to do some background financial work on your credit score.

its not about APR, its about risk

Mart

ScoobySteve69

iTrader: (13)

jef

iTrader: (13)

ive no ccj's ect no bankruptcy, i overpay my mortgage, and checked my experian credit rating which was 999? if that indeed means anything? just finished paying my previos car laon without a hiccup - althouh i did complain that i was unable to make overpayments on that loan.which ended in a bit of a situation - but that wasnt a loan with my day to day bank.

im a good prompt payer of any credit which made it strange the wildly varying apr rates i was given. even although due to the small sum involved meant that the differences over a 2 year period amounted to no more than couple hundred quid difference in interest

any other reasons?, im just abit afraid ive filled out a form wrong or something giving me a false rate available?

jef

iTrader: (13)

i chose my onw bank plus a.n other to get comparible results. so went through the rigmarole of question answering you expect with a loan application, so as to try get 2 scenarios seperated only by the companies policies

what about car finacing directly not even worth looking into?

im after an 08-09 plate fiesta diesel, nothing fancy

hodgy0_2

Is that a joke, I can't make it out!!

ScoobySteve69

iTrader: (13)

What can`t you make out?

hodgy0_2

Whether it is a joke

Graz

Just borrowed some money at 5.4% APR, Derbyshire Building Society (i.e. Nationwide). Got a perfect credit score though

pflowers

So you remortgaged your house to buy a car?

urban

iTrader: (1)

Why not see who is cheapest on moneysupermarket?

ScoobySteve69

iTrader: (13)

No, not a joke.

No not quite. It`s just a flexible way to borrow some cash. When I sell the Scoob, I`ll pay that off the `loan` and then pay off the remainder over the next few months

john banks

The best deal will be unlikely to come from your own bank. A small unsecured loan isn't going to get you what I would call a good rate and would be willing to pay.

Oddly my colleague was offered a good rate from his own bank, but when they heard it was to increase his equity stake in his business they refused and said they would lend it to him for a car. OTOH, we have cracking rate for a business loan and it would be much higher to buy a car.

Ant

Why not just get a loan? :Wonder:

hodgy0_2

because it will prob be much cheaper to borrow the money from the Mortgage company

but just seem silly to take money from an appreciating asset and put it into a depreciating one

Dingdongler

Plus there may be additional 'arrangement fees', but the biggest issue would be the temptation not to pay it all off quickly. As the loan would probably only add a relatively small amount to the monthly payment there would be a temptation to just let it roll.

And then a couple of years down the line do it all over again when you fancy changing the car......could end up paying ££££ in interest over the years and be left with a house devoid of equity.

However if you have financial discipline and your circumstances don't change it could be ok. My gut instinct though is that it's a dangerous way to buy a 'luxury' item....

john banks

Cut my dick off with blunt scissors and buy an optioned up TTRS to add 7 years to my mortgage. Yummy.



















Seriously though, I have bought cars from mortgage funds before and still paid the mortgage off 18 years early. All depends on discipline.

hodgy0_2

yes, John Ding

I think we are <management hat on> singing of the same hymn sheet <management hat off>

in the summer I was chatting to a colleague, a self confessed petrol head

he has had everything from F355 to an M3 via a Evo -- the amount of money he had spent/lost on cars was simply staggering

and quite alot came from releasing equity on his property (aka borrowing on his mortgage) - and he does earn a reasonable salary

but he still lives in a 3 bed semi, and is now struggling to move, he admitted he would have paid of his mortgage twice over had he not been injecting perfromance cars into his veins for the last 15 years

Butkus

To those here with expensive cars, how do you decide how much you are going to spend on a car? Do you decide what you are willing to lose, what your total outlay will be to buy the car outright, or what you are willing to pay each month for it? Is it a calculation you make depending on how much you earn, what your net worth is, or how much is left on the mortgage?

I find this kind of question interesting. Maybe because I am nosey, but also because I find myself so reluctant to spend money on new cars even though I 'could' have a better car!

Dingdongler

John, would you like an anaesthetic when you perform that self dickectomy? If so give me a shout

Seriously, I've considered it from time to time as it is the cheapest way to raise money but something about borrowing against my home to purchase a devaluing asset makes me feel very uncomfortable.

rossyboy

iTrader: (8)

How much can you get on a credit card?

I dumped £5.5k on mine to change cars and balance transferred to another for 22 months. I'll need to transfer again before its paid off, but I'll only pay about £230 in transfer fees over 3 years.

That's only 4% of the loan.

Very cheap money, but needs discipline to pay it off.

I can sell the car whenever I want, as there's no loan against it and no increase to the mortgage. Win

Dingdongler

It is a very interesting question and one I've pondered quite often.



For me my prime concern is how much I will lose over the ownership period, my net loss if you like.

I never thought this way when I was younger, my only concern at that time was whether I could pay for the car in anyway.
The problem with my 'mature' approach is that I don't buy cars that I hanker for. This is fine but if I suddenly drop dead having not owned some dream cars I'll be mighty pissed off

Matteeboy

Bought the BM and the California (VW not Ferrari!!) for cash which seems unusual these days. Paid for the van on the debit card and was amazed when it "worked!" Apparently you can stick £50k on one.

Won't pay interest on anything and were not even Muslims ;-)

ScoobySteve69

iTrader: (13)

It`s literally a crafty temporary loan. When I sell the Scooby, that money will get paid off and like I said, the remainder (couple of grand) will get paid off soon after I`m paying £91 extra a month until it`s paid, so for me it`s manageable.

£25 fee to put the cash in my account and as for the rest of your post...see above My mortgage is quite small too

john banks

Butkus, I look for strong value for money in anything I buy, and deliberate for too long even on minor purchases. I try to weigh up the enjoyment and function I'll get out of a car or any purchase against its cost. Presently I am on track to pay off my mortgage at 41. That age will not move any nearer, but it could get further away if I do more building work although that should be into an asset that won't depreciate like a car and may appreciate, although there is little room in stretched property prices to do that. I've probably bought my most expensive car ever now, and get just as much enjoyment from cheaper cars.

hodgy0_2

that's cool steve, and I don't mean to appear judgemental - i don't know your circumstances, and was making a general point

I suppose all i would say is that "When I sell the Scooby" could be seen as over optimistic

this forum is littered with threads by people moaning that they cannot sell their <insert amazing spec here> for a <fantasy price here>

but anyway, the world would be a sh1ttier place if everyone drove diesel Audi's

so crack on and I hope you enjoy your M3 -- I have always loved them