i know this has been discussed before but wanted to go over it again,
whats the best way to finance a car purchase(either new or secondhand)
many thanks
Liam Mc
Bank loan..
Never do a dealer finance thing. The rip you off big style.
work it out but it might be cheeper to get a new one on 0%
Cash. Save up and earn interest then pay cash and get a discount from the dealer. If you get a loan you pay interest on the balance.
Sell your old car privately (if you have one) as you're unlikely to get a good PX deal.
I agree - DON'T take the dealer finance package; even a high street bank will likely give you a better rate. Even if the dealer offers a 0% loan
rate, it is likely that they will not discount the purchase price as much.
If you can get a big enough credit limit, get one of the credit cards with a fixed interest rate for life of balance transfers, then transfer enough
from other credit cards to cover the "loan" amount and you get special rate for as long as it takes you to pay off, e.g. 3.9% p.a. with
M&S &More card. You mustn't then use the card for other purchases, though, because they are not paid off until you have paid off the life
of balance amounts, so will accrue interest at the normal rate. See http://www.moneysavingexpert.com for more information on this and other
"Locost" types of idea on all aspects of finance.
Good luck
The trouble with the 0% dealer options you usually have to have lump sums to pay at the start and finish
Having in a former life sold secondhand cars believe me there is no such thing as interest free credit.
At the time we could genuinely beat the high street banks on finance though, honest. Don't know if this is the case now though.
I haven't looked myself but someone was telling me about "marmalade.com2 may need too mess with spelling too find it but apparently they are
doing good finance deals ?
Remember no one will give you anything for nothing, no one can, they would go bust.
I bought my last car on the credit card then got another one with 0% on balance transfers for 9 months, then after 9 months I got another 0% card....and so on. Here I'am 2 years later with the 'loan' paid off and not a penny in interest paid.
gotta be careful with that one, if you find yourself unable to find another interest free card even for a month then the interest would be
astronomical!
Extend your mortgage to pay for the car - you can take the money over whatever time limit you want (doesn't have to match your martgage) and
it'll be the cheapest money you'll ever borrow.
I took the loan only to find out my boss has taken a bigger chunk through the mortgage and bought a new BMW and only forking out about £20 a month
more.
Next time my car's due for renewal, that's the way I'll be going.
I work for HBOS Plc now...we get quite nice staff loan and mortgage rates.....Perhaps you've got a close mate or family member with a bank who might extend the hand of kindness....Oli.
quote:
Perhaps you've got a close mate or family member with a bank who might extend the hand of kindness.
Yeah that'd be nice.....was stocking up the TCD (cash dispenser) tonight.....£55K in 20's, 10's and fivers......not a bad way to spedn overtime! Oli.
Car dealers don't want cash these days.
Money Laundering rules make dealing with cash a nightmare. You'll get a better deal if you go for finance
by cash they just mean 'cleared funds', ie a cheque would do or bank transfer.
I once bought a house and told them it was a cash purcahse and got funny looks, til i explained i didnt actually mean a briefcase of paper!