Alternatives to dealer finance?

[bigdavy]

We've found a car we like at a non franchise dealer, whilst discussing a PCP deal it came up their interest rate was almost 17%. This pushed the monthly payments way above what I expected.

I've googled independent car finance and found a company called Magnitude finance who have very reasonable rates. Anyone heard of them or used them?

Any suggestions for other companies to try?

Thanks.

[grumbledoak]

https://www.moneysupermarket.com/loans/car-finance...

I went with Tesco in the end.

[tallpaul26]

Magnitude are a broker. Their headline rates are typically for high value vehicles and lowest risk customers but worth enquiring with.

Forza were another broker with access to sensible rates last time I looked.

[r3g]

bigdavy said:

We've found a car we like at a non franchise dealer, whilst discussing a PCP deal it came up their interest rate was almost 17%. This pushed the monthly payments way above what I expected.

I've googled independent car finance and found a company called Magnitude finance who have very reasonable rates. Anyone heard of them or used them?

Any suggestions for other companies to try?

Thanks.

Bank loan will be your cheapest route for finance but ignore the advertised "representative" APRs like 6.1% as only about 2 people get those. Budget for double that APR if you get approved. Maybe some movement either way if your credit file is exceptional, one way or the other.

[charltjr]

r3g said:

Bank loan will be your cheapest route for finance but ignore the advertised "representative" APRs like 6.1% as only about 2 people get those. Budget for double that APR if you get approved. Maybe some movement either way if your credit file is exceptional, one way or the other.

Not true. Representative APRs must apply to at least 51% of all borrowers, although obviously if you have any sort of adverse credit history then you are unlikely to get it.

[Ken_Code]

r3g said:

Bank loan will be your cheapest route for finance but ignore the advertised "representative" APRs like 6.1% as only about 2 people get those. Budget for double that APR if you get approved. Maybe some movement either way if your credit file is exceptional, one way or the other.

At least 51% of the loans are at the advertised APR or better. It’s a legal requirement and lenders are audited on it.

[r3g]

charltjr said:

Not true. Representative APRs must apply to at least 51% of all borrowers.

So everyone says but nobody knows of anyone who actually gets it and that includes people with perfect credit files. It's moot anyway. The guy asked for better options than dealer finance. Bank loans is it. End of thread.

[blearyeyedboy]

r3g said:

So everyone says but nobody knows of anyone who actually gets it and that includes people with perfect credit files. It's moot anyway. The guy asked for better options than dealer finance. Bank loans is it. End of thread.

Horse manure. I have, and 51% of people do.

That said, I do agree with budgeting for a higher rate than the advertised one. After all, 49% end up with that scenario.

[bigdavy]

Thanks for the replies.
I'm really looking for a PCP finance deal, as I said Magnitude have offered very good rates but I haven't heard of them before. I'll look at Forza as well.

[bennybeats]

Some banks offer used PCP. I'm with Halifax and their rate is 6.9%.

[Sslink]

r3g said:

So everyone says but nobody knows of anyone who actually gets it and that includes people with perfect credit files. It's moot anyway. The guy asked for better options than dealer finance. Bank loans is it. End of thread.

I got the advertised rate of 2.8% 2 years ago and when the missus applied for a loan in Feb this year, she also got the advertised rate, albeit now at 6.x%.

We must be incredibly lucky! Should have put the euromillions on rather than loan a few grand.

[Ken_Code]

r3g said:

So everyone says but nobody knows of anyone who actually gets it and that includes people with perfect credit files. It's moot anyway. The guy asked for better options than dealer finance. Bank loans is it. End of thread.

It’s audited.

[charltjr]

r3g said:

So everyone says but nobody knows of anyone who actually gets it and that includes people with perfect credit files. It's moot anyway. The guy asked for better options than dealer finance. Bank loans is it. End of thread.

Your data is...... somewhat lacking.

[charltjr]

bigdavy said:

Thanks for the replies.
I'm really looking for a PCP finance deal, as I said Magnitude have offered very good rates but I haven't heard of them before. I'll look at Forza as well.

I've heard of Magnitude, have never used them but AFAIK they've been around a while.

You could try Oracle too, they're quite a big name in PCP finance but I seem to remember they mostly specialise in the high end.

I wouldn't expect incredibly good rates from any of them though, the base rate is just too high.

Money Saving Expert list Bank of Scotland / Lloyds and Halifax as their pick of banks who offer PCP, and Magnitude and Motiv as their pick of non-bank lenders.

[NomadicTurbo]

Magnitude Finance
Charles & Dean
Lillian Stanley

Are just some of the ones I regularly see people use for vehicle funding

[bigdavy]

Thanks for the replies, now sorted, decided to go with a straight bank loan after all.