Advertised finance rates
Discussion
Generally you need a good rating for so called in house finance. If you don’t meet the criteria dealers can sometimes refer you to a third party partner e.g. black horse.
The FCA rules were supposed to fix financing rates somewhat but dealers are breaking the rules again.
For example with BMW used approved and a good-excellent rating:
Car is less than 6 months old: 6.9%
Over 6 months: 8.9%
However, in their used inventory you can find offers for 7.9% on a 6 year old model. No doubt this is an “offer” or “error” and thus there may well be some loopholes for customers.
The FCA rules were supposed to fix financing rates somewhat but dealers are breaking the rules again.
For example with BMW used approved and a good-excellent rating:
Car is less than 6 months old: 6.9%
Over 6 months: 8.9%
However, in their used inventory you can find offers for 7.9% on a 6 year old model. No doubt this is an “offer” or “error” and thus there may well be some loopholes for customers.
ads_4116 said:
Does anyone know if the advertised finance rates on used cars are actually the rates provided? Or whether the agreed/final finance rates are risk based upon the individuals credit report/score?
Thanks.
They are normally based on your general credit rating I believe so if its 9.9% advertised but you have a history of defaults or missed payments, expect it to suddenly jump up to cover the risk or be declined entirely.Thanks.
A bank loan might be a better idea if you can get one. Lloyds were offering me £35k at 2.9% recently but my credit history is stellar.
Bear in mind that with a bank loan or personal loan, this is an unsecured loan. Whereas dealer, manufacturer or 3rd Party finance products are usually secured against the asset, i.e. the car. So whilst the interest rate will be lower for a personal loan / bank loan, it may reduce your potential for future lending i.e. for mortgage . etc.
Cestrian said:
Bear in mind that with a bank loan or personal loan, this is an unsecured loan. Whereas dealer, manufacturer or 3rd Party finance products are usually secured against the asset, i.e. the car. So whilst the interest rate will be lower for a personal loan / bank loan, it may reduce your potential for future lending i.e. for mortgage . etc.
The monthly payment on PCP/HP affects your mortgage affordability and ability to obtain one just as much as the monthly payment on a Personal Loan.Gassing Station | Car Buying | Top of Page | What's New | My Stuff