Lloyds car finance PCP APR 4.2%
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Lloyds car finance PCP APR 4.2%

19
Found 14th Mar 2016
OK, so for Lloyds customers they are now offering car finance & I saved a reasonable amount rather than going through the dealer. My A.P.R with Lloyds was 4.2% as opposed to 10.9% with the dealer.

Purchase price of £11,949
Deposit £3,500
Term 48 months
Dealer monthly cost £156.63
Lloyds monthly cost £128 (haven't got exact figure with me at work)

It saves approx £1,600 in interest over the term for providing exactly the same thing. I didn't even know this was an option until this weekend so hope this helps someone else too.
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Forza St Pauli. Been there? Celtic party?
Halifax do the very same scheme...seems so much better than using makers options....unless they are giving massive cash backs of course, then its better to take their option and cancel before 14 days and pay off with cash (personal loan perhaps)
Lloyds account holders for 3 months plus
Or just get a loan at an even better rate???
Surely a loan would be below 4%
I'd do what twinkle suggested. I've bought my last 2 cars on the dealers finance to get 2 years servicing and a decent discount then took out a personal loan at less than half the dealer interest rate, paid off the dealer finance within 14 days and kept the servicing and other benefits. Think Audi are getting wise to this now tho
twinkle

Halifax do the very same scheme...

Same people (LBG)
Unlike a personal loan, with these finance agreements you don't actually own the car outright until the final payment has been made. The bank actually loans the money against the car, which may be good if you unfortunately have a problem with the car afterwards as you can actually refer the problem to the bank to deal with.
I took out an Halifax agreement last year and it was approved online in a matter of minutes, payment was made to the dealer within the hour, rate was lower than the dealership, a lot less paperwork, and the overall process seemed much simpler and quicker than a personal loan. Liked the fact in particular that there was another person to go too should I have any problems with the purchase, however I didn't , but worth an extra 1% or so to me just for that peace of mind.
Payment is made direct to the Dealership,

From Lloyds Web Site;
What is Satisfactory Quality?
By law, goods sold must be of satisfactory quality and fit for the purpose for which they were intended. We are responsible for the quality of the goods and resolving any disputes where the goods aren’t of the required standard.
goldy12

Unlike a personal loan, with these finance agreements you don't actually … Unlike a personal loan, with these finance agreements you don't actually own the car outright until the final payment has been made. The bank actually loans the money against the car, which may be good if you unfortunately have a problem with the car afterwards as you can actually refer the problem to the bank to deal with.I took out an Halifax agreement last year and it was approved online in a matter of minutes, payment was made to the dealer within the hour, rate was lower than the dealership, a lot less paperwork, and the overall process seemed much simpler and quicker than a personal loan. Liked the fact in particular that there was another person to go too should I have any problems with the purchase, however I didn't , but worth an extra 1% or so to me just for that peace of mind.Payment is made direct to the Dealership, From Lloyds Web Site;What is Satisfactory Quality?By law, goods sold must be of satisfactory quality and fit for the purpose for which they were intended. We are responsible for the quality of the goods and resolving any disputes where the goods aren’t of the required standard.



Just get a personal loan on a cheaper rate e.g. 3.3% at high-street bank and pay on your card and you're still covered by the bank should there be any unforeseen issues?

Not sure why this is considered a deal when the APR is higher than elsewhere..

toonarmani

Just get a personal loan on a cheaper rate e.g. 3.3% at high-street bank … Just get a personal loan on a cheaper rate e.g. 3.3% at high-street bank and pay on your card and you're still covered by the bank should there be any unforeseen issues?Not sure why this is considered a deal when the APR is higher than elsewhere..



Very few dealerships will accept a credit card payment without charging you a percentage for doing so thou, so would work out fair more expensive.
Original Poster
toonarmani

Just get a personal loan on a cheaper rate e.g. 3.3% at high-street bank … Just get a personal loan on a cheaper rate e.g. 3.3% at high-street bank and pay on your card and you're still covered by the bank should there be any unforeseen issues?Not sure why this is considered a deal when the APR is higher than elsewhere..



toonarmani

Just get a personal loan on a cheaper rate e.g. 3.3% at high-street bank … Just get a personal loan on a cheaper rate e.g. 3.3% at high-street bank and pay on your card and you're still covered by the bank should there be any unforeseen issues?Not sure why this is considered a deal when the APR is higher than elsewhere..



Depends what your circumstances are. Taking a personal loan over a PCP increases your monthly repayment.
goldy12

Very few dealerships will accept a credit card payment without charging … Very few dealerships will accept a credit card payment without charging you a percentage for doing so thou, so would work out fair more expensive.



If you pay on a debit card (for entire purchase) you also have cover.

Also, dealers allow smaller payments on credit card for no charge (our local dealer was £1000 fee free), so just pay in increments up to £1000 each payment
humphmeister

Depends what your circumstances are. Taking a personal loan over a PCP … Depends what your circumstances are. Taking a personal loan over a PCP increases your monthly repayment.



Can you clarify your calculations in the OP? or am I missing something?

Purchase price of £11,949
Deposit £3,500
Term 48 months
Dealer monthly cost £156.63 (x48 payments is £7518 + £3500 deposit leaves £930 short of purchase price?)
Lloyds monthly cost £128 (x48 payments is £6144 + £3500 deposit leaves £2305 short of purchase price?)

******
Whereas personal loan (3.3%) over 48 months would be £187.95 per month + £3500 deposit = £11949

£9021.70 total cost of loan (only £572.70 interest over 4 years)
******
Original Poster
toonarmani

Can you clarify your calculations in the OP? or am I missing … Can you clarify your calculations in the OP? or am I missing something?Purchase price of £11,949 Deposit £3,500 Term 48 months Dealer monthly cost £156.63 (x48 payments is £7518 + £3500 deposit leaves £930 short of purchase price?) Lloyds monthly cost £128 (x48 payments is £6144 + £3500 deposit leaves £2305 short of purchase price?)******Whereas personal loan (3.3%) over 48 months would be £187.95 per month + £3500 deposit = £11949£9021.70 total cost of loan (only £572.70 interest over 4 years)******


I think you are missing something; the difference between a PCP deal & a loan. A PCP deal still requires a final payment to clear the finance or roll it over to another deal. You have just proved my point that taking a personal loan increases the monthly payment to £187.95 p.m as opposed to £128 p.m with the Lloyds PCP deal.

Your loan would cost approx £2,847 more over the 48 months but have no final balance to pay. I would have a final balance to pay of approx £3,300 if I wanted to keep the car.
Original Poster
This is what I feel is a good PCP deal & doesn't tie you to the dealer's higher rates
humphmeister

I think you are missing something; the difference between a PCP deal & a … I think you are missing something; the difference between a PCP deal & a loan. A PCP deal still requires a final payment to clear the finance or roll it over to another deal. You have just proved my point that taking a personal loan increases the monthly payment to £187.95 p.m as opposed to £128 p.m with the Lloyds PCP deal. Your loan would cost approx £2,847 more over the 48 months but have no final balance to pay. I would have a final balance to pay of approx £3,300 if I wanted to keep the car.



​but if you've no interest in owning the car at the end you could lease one a lot cheaper and save your £3500 deposit and have a cheaper monthly payment.
Original Poster
Yes, there are lots of different options. I know, as I have spent weeks deciding what to do. I decided to go the PCP route as it suited me & thats why I posted the deal in the hope it would help someone. I may decide to make the final payment, I like that I have the option.

I did look at PCH but as soon as you increase the mileage ( I need 17,000) the price goes up considerably.

Up to you how you fund your car but if this saves someone from taking a PCP deal at higher rates with a main dealer then object achieved.
Original Poster
Here are the full numbers:
Finance option: Flex Car Finance

Price of car: £11,949.00

Deposit: £3,500.00

Amount of credit: £8,449.00

APR:4.1%

Term: 48 months


Monthly repayment: £128.31

Final lump sum payment: £3,380.00

Purchase fee: £10.00

Total repayable: £9,410.57
So it's basically cost you £1000 over 4 years to buy a car that you could sell or keep at anytime. With the peace of mind you have a dealership & bank to contact should you have any problems.

Seems hot to me!!
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