3.99%
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lingus75

Original Poster:

1,705 posts

252 months

Friday 6th July 2012
quotequote all
Is the flat rate I have been offered on a vehicle purchase with a large deposit on HP, or 8.2% on PCP which I don’t really want. Is the 3.99% as good as it gets as I didn’t have to try very hard for it, and have also a few other goodies thrown in.

I have never taken a loan near the amount that this would be, so have very little experience. It’s affordable after all other outgoings and leaves a decent enough sum for living costs.

I would never have considered this previously, but over the last few years a number or random events have transpired to remove some friends and family from this earth frown I guess I just want to enjoy what I have worked hard for, and staring at a bank statement doesn’t fill me with joy anymore.

Diablos-666

2,786 posts

208 months

Friday 6th July 2012
quotequote all
3.99% is pretty good, a lot of people are paying more than that on a mortgage!

What's the car btw?

lingus75

Original Poster:

1,705 posts

252 months

Friday 6th July 2012
quotequote all
Diablos-666 said:
3.99% is pretty good, a lot of people are paying more than that on a mortgage!

What's the car btw?
911 Turbo (997). I'm getting fed up with finding what I want of the 996 variety so going newer gives me more choice and a 2 year porsche warranty.

Guvernator

14,475 posts

195 months

Friday 6th July 2012
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lingus75 said:
Is the flat rate I have been offered on a vehicle purchase with a large deposit on HP, or 8.2% on PCP which I don’t really want. Is the 3.99% as good as it gets as I didn’t have to try very hard for it, and have also a few other goodies thrown in.

I have never taken a loan near the amount that this would be, so have very little experience. It’s affordable after all other outgoings and leaves a decent enough sum for living costs.

I would never have considered this previously, but over the last few years a number or random events have transpired to remove some friends and family from this earth frown I guess I just want to enjoy what I have worked hard for, and staring at a bank statement doesn’t fill me with joy anymore.
If 3.99% is the flat rate then that works out to about twice that for APR and you can definately do better than 8% APR. You should be aiming to be nearer 6%. Is this from a dealer finance deal? I've found that they are very disingenous and will even outright lie about the interest rate to get you to sign. You need to take the amount you are actually going to borrow and just plum the figures into an online loan calculator which will tell you the real rate you are getting.

lingus75

Original Poster:

1,705 posts

252 months

Friday 6th July 2012
quotequote all
Guvernator said:
If 3.99% is the flat rate then that works out to about twice that for APR and you can definately do better than 8% APR. You should be aiming to be nearer 6%. Is this from a dealer finance deal? I've found that they are very disingenous and will even outright lie about the interest rate to get you to sign. You need to take the amount you are actually going to borrow and just plum the figures into an online loan calculator which will tell you the real rate you are getting.
Yep, from Porsche dealer. On the rates they are stating that 3.99% flat is the best they can do as they are sacrificing all the commission, perhaps not a straight as I thought?! I have spoken in the past with a few brokers who will be keen to do a deal so I will see what they can do.

Cupramax

11,007 posts

282 months

Friday 6th July 2012
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How do car dealers get away with always quoting flat rate, I thought they were legally bound to quote APR by the FSA?

tyrrell

1,718 posts

238 months

Friday 6th July 2012
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It's called flat rate land and people fall for it every time, I am amazed that they still get away quoting it.

influential

133 posts

213 months

Friday 6th July 2012
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Worth giving Oracle Finance a call to compare. Sure they'll beat your c 8% APR quite from Porsche.

Defcon5

6,474 posts

221 months

Friday 6th July 2012
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What is the difference between flat rate and APR?

Diablos-666

2,786 posts

208 months

Saturday 7th July 2012
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tyrrell said:
It's called flat rate land and people fall for it every time, I am amazed that they still get away quoting it.
Yep, I would have fell for it. I'm not too clued up on finance.

Ignore my first post OP getmecoat


mcflurry

9,190 posts

283 months

Saturday 7th July 2012
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Defcon5 said:
What is the difference between flat rate and APR?
The flat rate applies throughout the whole length of the debt, but is a lot easier to work out.
Say you borrow £1000 at 4% flat for 2 years, you would pay £1000 + (2 x 40)

With APR it takes into consideration that you have paid off a chunk of interest throughout the life of the debt, as well as any other costs incurred.

Usually the APR is around double the flat rate (ish)


tuskkev

140 posts

225 months

Saturday 7th July 2012
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3.99 flat isn't actually that bad.
I have been through a lot of finance deals recently as I have bought 2 new cars in the last couple of months.
There are so many factors to take into account. i.e. do you want the lowest monthly payments or the lowest cost over the term of the finance.
Are you looking at PCP, Lease purchase or HP?
Just as an example, I arranged the finance for my range rover and found the best quote i could at 8% apr. I mentioned this to my friend who is dealer principle at a bentley dealership. He said I can beat that so I said ok let me know what you can do.
Now, yes he could beat the apr (7.3%apr) but the residual value on his deal was £4k lower than on mine, making the monthly payments a lot more expensive but cheaper over the term of the finance.
As I tend to only keep cars around 2 years I always go for lower payments.
Also the choice of car and the deposit amount will both have an effect on the available rates.
Finally I would recommend you have a chat with www.car-finance.net. They are a broker that I have used to purchase my last 7 cars and on every one of the deals I haven't been able to find anyone that could beat them including oracle who couldn't get close. They use lots of different finance companies, the 2 that they arranged on my current cars are with alphera(BMW) and ALD both are regulated which is another thing I would suggest you check.
hope this helps.

tuskkev

140 posts

225 months

Saturday 7th July 2012
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I forgot to add that APR is representational of the full cost over the full term of the finance.
What this means is it takes in to account 1 off charges (like arrangement fees, document fees and option to purchase fees) and includes them in the total cost. These charges will vary between finance companies.

lingus75

Original Poster:

1,705 posts

252 months

Sunday 8th July 2012
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Do you tend to get better rates on hp, rather than pcp? I was told that if you plan to keep the car , pcp is not the way to go. Is that accurate?

tuskkev

140 posts

225 months

Monday 9th July 2012
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Generally HP rates will be a bit lower than pcp deals but the monthly repayments will be a lot more.
The reason a pcp deal will cost a lot more generally is because you are paying less capital off in your monthly payments as a large chunk is deferred to the end of deal, which will either need paying off if you have the cash, car handing back or the outstanding amount financed in another way(ie personal loan)

peatmoor

196 posts

175 months

Tuesday 10th July 2012
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I imagine that your credit rating is pretty good if your in the market for a 997, in that case you can get 6% with Tesco or First direct (upto 15k) personal loan. Always worth extending your mortage if you can/if you have one too. I guess you could combine a couple of these to get your capital

Butter Face

35,023 posts

190 months

Tuesday 10th July 2012
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How much are you borrowing?