Car finance

[Ian H]

When buying a used car is there any benefit in using the dealers finance facilities rather than getting a personal loan?

The cars around 3 years old and £15000.

A friend of mine thinks with using their finance you have more control if something goes wrong but I can't see it myself.

 

[DaveHerns]

Friend bought a new Kadjar from Carwow and was offered finance. He got a bank loan at a much better rate.

 

[freddiemercurystwin]

I got a bank loan, only another 6 years to go!

But I wouldn't of dreamt of giving the dealer any more of my cash in the form of commission. Though I don't think car dealers would have been interested in the colossal length of my loan!

 

[Burnerman]

The dealers use the big finance underwriters anyway so it's really the APR rate that makes the decision.
John

 

[EddieM]

certainly used to be. In quite possibly times gone by you could get a fair wedge off the car price by accepting the dealers lousy finance deal, then as is your right you could either immediately pay it all off through either your own savings or alternative finance. I think they may be a bit wise to that old ruse now.

 

[Keithmac]

People buy caravans through finance for the protection it offers, basically the finance company are jointly liable for any issues dien the road ie not fit for purpose etc.

I bought our Kuga with a personal loan at bank (2.9%), dealership couldn't get anywhere near that..

 

[Ian H]

I got a bank loan, only another 6 years to go!

What did you buy?

 

[freddiemercurystwin]

Nothing extravagant, just a Golf diesel but twas the only way I could afford it. I will keep it for longer than the loan and I like to 'own' my car, even though I also have a loan for it!

 

[Ian H]

Was that a new one?

I'm after a Golf too and could potentially keep it until I'm old and not driving any more.

Something like this:
https://www.autotrader.co.uk/classified/advert/201805296974717

But I think I could get one a year newer with less miles for the same price.

 

[freddiemercurystwin]

New? I wish! Twas about £13k.

 

[Keithmac]

We keep our cars 10 years, still miss our old Mk2 Focus Diesel (Packed to the gunnels/ roofbox on down to Devon on camping holidays!).

 

[Ian H]

Strangely enough, this forum is chucking AA car loans at me now

3.1%

 

[Keithmac]

You have a lot more come back if you buy on Hire Purchase as the finance company have a vested interest in the car and will fight your corner.

Personal loan is just that, the bank have no interest in what you spend it on..

 

[Ian H]

There's a place local and on an £18000 car you pay a £388 admin fee and the total ends up £25000 :0


My missus has decided our 10year old Galaxy needs swapping first so we are off to look at a BMW 2 series Gran Tourer. Not quite the hot hatch I had in mind.

 

[DaveHerns]

I don't think the 2 series are made in Germany . Article in a recent Car Mechanics magazine about them being the BMW no one wants 2nd hand. I think they're front wheel drive.