Finance question

[goap]

I'm currerntly in the process of sorting my car finance out in perparation for delivery in March.

Obviously the dealer is pushing me hard to take their finance, but under the standard 5 year HP deal, I can get a bank loan for about £15 a month less.  Doesn't sound like a lot but with interest and the like after 5 years that will be a saving of almost a grand.

Should I expect the dealer to drop the price to match that quote?  Or maybe I could ask them to throw in a couple of services and pay the higher rate?

Or should I be paying more attention to PCP?

Would be interested in peoples thoughts.

[Ollieb7]

These guys currently are the cheapest ...

http://www.alliance-leicester.co.uk/loans/index.asp?page=home&ct=primarymenu
 
at 5.9% APR

I was quoted 7.1% by VW 

Your are better just getting a repayment rather than a PCP as the latter will actually cost you more if you intend to keep the car 3 years and then pay off the settlement fee.

[timp7748]

Have they offered you the plan with a final payment after 3 years. Can't think what plan it is of the top of my head. Is the finance on a new or used car? Doubt very much they will give you any extras on a new car for free. Another option is to go for the cheaper interest rate then add more gear onto your car witht eh money you save  .

[goap]

Have they offered you the plan with a final payment after 3 years. Can't think what plan it is of the top of my head. Is the finance on a new or used car? Doubt very much they will give you any extras on a new car for free. Another option is to go for the cheaper interest rate then add more gear onto your car witht eh money you save  .

Well I've already loaded it up with extras.   

Just wondering if I could talk the dealer down some more as they think they can "meet my quote". 

Think you are right about money off which was why I thought maybe throw the first couple of services in if they can't get it down.

[goap]

These guys currently are the cheapest ...

http://www.alliance-leicester.co.uk/loans/index.asp?page=home&ct=primarymenu
 
at 5.9% APR

I was quoted 7.1% by VW 

Your are better just getting a repayment rather than a PCP as the latter will actually cost you more if you intend to keep the car 3 years and then pay off the settlement fee.

Thats what their website says.  They actually quoted me 10.9%.  Comes from being 26 without a house I guess.

VW quoting me 9.4% at the moment. 

[wantmygti]

9.4% is very beatable. Try Northern Rock or Egg.

Avoid PCP as you pay 3 years of interest on the lump sum at the end making it very expensive.

At last a question for the accountant among us!

[timp7748]

go on www.moneysupermarket.com - they compare al the loans on the market and give you a list of the cheapest ones available. They also do loans for non home owners. Take a look.

[RCUK]

If there is another dealer locally and you havent yet conmmitted to the car it might be worth playing one off against another.

[phope]

I'm looking at this very question myself at the moment too..

I'm staff with HBOS - here's what I've been offered from our own Vehicle finance division, against a £24k Edition 30 over 48 months PCP, based on 8000 miles per year (I don't do much mileage really   )

Deposit £6,000.00
Monthly payment £308.64
Final Payment £6,796.00
Excess Mileage up to 10% excess 7.49p/mile
Excess Mileage in Excess of 10% 11.24p/mile
APR 7.2%

Including my £6k deposit, £6796 final value and instalments of £14,814.72 - total price of a £24k car after 4 years is therefore £27,610.72 when financed this way

What I need to work out is what the comparable VW Finance offering is coming in at for me, weighing up the value of trade in, and any reduction VW offer for finance, and see how their offer compares.

I doubt VW can or will be able to match the APR that I've been quoted from my employer, but I want to see how the overall costs stack up before deciding

[timp7748]

The best thing to do is to ask your dealer for a finance quotation. They should be able to show you what the apr is and how much interest you will need to pay.