People who get finance on car, Personal loan vs finance

Found 18th Jul 2017Edited by:"Creatishh"
Not interested in either as I own my vehicle purchased 2 years ago just curious as my brother bought a finance car which he is now regretting ( i knew it when he bought it)

Personal loan vs fincance, if you read up on it you can get around 10k aslong your not got bad credit for around 3-5% intrest, but this is more flexible as you own the car and decide you want another car you can sell and buy new one unlike finance

finance is really low % intrest and even apparently sometimes 0% in all the articles you read but the cars are overpriced by like 10% are'nt they? that's what i feel but im not quite sure

just curious if this is the case, my brother bought a car 1 year in he know needs to upgrade to a van but will need to borrow 8k to pay it off to be able to sell it.

I don't really fancy doing it for him since he has not paid off the money he owes me as it is lol
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tl;dr - Are cars that are available for 0% finance already overpriced by about 10%?
snowball effect.. That's how people get into financial difficulties, by borrowing more money to pay for something already financed.
The finance options depend on the offers available at the time, sometimes they work out at the RRP, sometimes more and once in a blue moon cheaper.

Personal loans tend to work out more expensive, but like you said you have the option to sell it on at any point.
The third option:

0% Credit card.
Set up regular payment plan to pay off balance.
Then balance transfer to a new card once 0% period has expired.

That is assuming you would qualify for a high enough limit.

The third option:0% Credit card.Set up regular payment plan to pay off … The third option:0% Credit card.Set up regular payment plan to pay off balance.Then balance transfer to a new card once 0% period has expired.That is assuming you would qualify for a high enough limit.

I would have though amount of people who would get an immediate credit limit high enough to buy a car, but don't have the money knocking around to buy a car is very small.

I don't think it's necessarily true about not being able to get a good deal if you use finance. I was going to buy a car with a staff discount on finance and when I was offered interest at somewhere around 5-7% I decided it would be better to pay the full amount (because 7% isn't too far off the price you would get by just asking for some money off), when I did this the guy I was speaking to went to the sales manager and he said no, there wouldnt be anything in it for them, even though a family member worked for a part of the same group :(. Anyway... Ended up buying the car from another dealer, I then kind of regreted buying a car new and now just stick to company cars and second hand cars.
Edited by: "MIDURIX" 18th Jul 2017
generally finance, especially on new cars, tend to get better deals than even cash once you take manufacturer deposits in to account.

and an FYI - this happens with any new car, regardless of how you pay for it. if he owned it outright he will still get back considerably less than he paid for it in the first place so he wouldn't be much better off cashflow wise...
Edited by: "adamspencer95" 18th Jul 2017
In general don't believe the RRPs of new cars . Leasing and finance companies always quote them to suck you in but they are unrealistic .

"Drive the deal" and others can typically offer a price for a new car at 20-30% off for a cash buy . Focus 25-30% off (OK its getting a revamp a la Fiesta next year ) . Seat Leon (some models 25% off , Cupra 30% off ) even the good old Golf 20% + off . That's the ones I've checked out so far .

Use a Legit Broker and they get their cut from the dealer so the only money you pay is to the main dealer .

Another thing I've found is that all the dealers use the "We buy any car .com" valuation template so get your PEx valued first then you will know what the actual deal is .

Forewarned is forearmed - I think I am oO . I'm on the hunt for a cash deal on a modest new model Ford ,Seat , VW etc . My old 6 year old Astra is worth £3264 according to We buy any car , I can get a metallic silver 2017 spec Focus 125 Zetec for £14572 (about £6K off list ) . I'll see what my local dealers can do to match (or beat) those figures .

I shall also pop into Motorpoint to ask how they can justify offering the 2016 Focus (much lesser spec model) 14 months old with 15 K on the clock for £11- £12 K , when the 2017 (much higher spec ) model is available brand new for under £14000 , admittedly in gopping standard red (New Car Dealer ) oO .

Edited by: "rogparki" 18th Jul 2017
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