Car finance - apr's to drop in new year ?????
 

With the car - credit markets normally a 1/4 behind the B of E interest rate cuts do you think these will get pased on for car finance - loans etc either new supported by Manufactures etc - e.g Volvo doing 5.9% etc

and then will we be able to get better finance on 2nd stock than the usual 9-14% ??????

Thoughts please.

I thought a lot of firms are now doing 0%? :wonder:

You'd like to think so! Finance House is about 3 months behind the banks so a drop should happen, although I know some finance companies have just put their bases rate up?!

0% is very rarely offered on used cars, the deals on new are generally subsidised by the manufacturer, used car's are not owned by them so it's down to the individual dealer and quite simply at the moment they can't afford it.

A good low rate PCP deal is what to go for in my opinion as you will have a guarenteed future value at the end and be in a better equity position earlier on, thus minimising risk.

I would expect alot of 0% deals to be available. If not direct from the lenders, they could well be subsidised by the dealer. There wont be a lot of commission for low interest rate deals, so it wouldnt take much for the dealer to reduce a low rate down to 0% and take a hit on it.