Financing a car in 2023

[macp]

Just trying to get some advice on best method of financing a car now. We are looking to spend up to 20k on a used car with ideally no more than a 10% deposit if need be. I understand that interest rates are not what they were. But im hoping used prices are falling. Even though we will have to buy fairly soon.

Thankyou in advance for thoughts, comments.

[cossy400]

When we bought our X3 bmw finance couldn't get close to my bank, on a finance basis not a bank loan.

[sunnyb13]

Just buy outright.

Finance on used cars are ridiculous

[macp]

sunnyb13 said:

Just buy outright.

Finance on used cars are ridiculous

Would that we could sunny. Would that we could.

[macp]

cossy400 said:

When we bought our X3 bmw finance couldn't get close to my bank, on a finance basis not a bank loan.

So far car money are offering 9.8%. Only stipulation is car must be under 5yrs old.

[sunnyb13]

macp said:

sunnyb13 said:

Just buy outright.

Finance on used cars are ridiculous

Would that we could sunny. Would that we could.

It’s crazy like 13.9% at the moment for Blackhorse via cinch/cazoo/ car giant . Some new cars seem to have better incentives, I think Suzuki are doing 7%

[macp]

Strike that car money are offering 12.9% ouch !

[Jamescrs]

I found best rate recently was with my own bank at 5.9% tried comparison websites first and was getting quoted anything upto 19%.

[macp]

Jamescrs said:

I found best rate recently was with my own bank at 5.9% tried comparison websites first and was getting quoted anything upto 19%.

Thanks James thats impressive. May I ask who is your bank ?

[Jamescrs]

HSBC - I should add though I just double checked and the rate is 6.9% so not quite as good as I had remembered. It was the best I found by quite a way though.

Edited by Jamescrs on Monday 9th October 21:21

[_Darren_]

Worthwhile checking some credit unions, my local one is offering 3.9% up to £30k.

https://www.scotwest.co.uk/loans/carloan/

[Kingdom35]

What about a 0% on purchase credit card?
Then once the 0% period is up, 0% balance transfer card the remaining balance.

At least if you can fund half the car purchase this way at least you’re in a better financial loan % position.

[sunnyb13]

Kingdom35 said:

What about a 0% on purchase credit card?
Then once the 0% period is up, 0% balance transfer card the remaining balance.

At least if you can fund half the car purchase this way at least you’re in a better financial loan % position.

We’ve done that with a cinch purchase.

[macp]

Jamescrs said:

HSBC - I should add though I just double checked and the rate is 6.9% so not quite as good as I had remembered. It was the best I found by quite a way though.

Edited by Jamescrs on Monday 9th October 21:21

Just looked and Santander are offering 5.9%

[Mr_Megalomaniac]

macp said:

So far car money are offering 9.8%. Only stipulation is car must be under 5yrs old.

Generally, and of course it does depend on your specific circumstances and credit score, etc, but generally it's going to be cheaper to get an auto loan from your bank than it is to get any dealer arranged finance.
For example, 4.2% versus 9%. Big difference.

[macp]

Kingdom35 said:

What about a 0% on purchase credit card?
Then once the 0% period is up, 0% balance transfer card the remaining balance.

At least if you can fund half the car purchase this way at least you’re in a better financial loan % position.

It’s a good thought but the min payment would be about 5% wouldn’t it.

[bmwmike]

_Darren_ said:

Worthwhile checking some credit unions, my local one is offering 3.9% up to £30k.

https://www.scotwest.co.uk/loans/carloan/

That's the answer, surely ! Thanks for posting this

[RoVoFob]

macp said:

sunnyb13 said:

Just buy outright.

Finance on used cars are ridiculous

Would that we could sunny. Would that we could.

You can. You said that you have 10% of the £20k notional budget to put down as a deposit. That’s £2,000 - more than enough to buy a number of decent cars.

Whether you want to run one of those cars is a different matter! If you think that used prices are falling, buying a cheaper car is one way to limit how much money you can lose, too, as it has less value to lose in the first place…

Here’s why my money would go:
https://www.autotrader.co.uk/car-details/202304116...

https://www.autotrader.co.uk/car-details/202309272...

https://www.autotrader.co.uk/car-details/202306148...

[Silvanus]

RoVoFob said:

macp said:

sunnyb13 said:

Just buy outright.

Finance on used cars are ridiculous

Would that we could sunny. Would that we could.

You can. You said that you have 10% of the £20k notional budget to put down as a deposit. That’s £2,000 - more than enough to buy a number of decent cars.

Whether you want to run one of those cars is a different matter! If you think that used prices are falling, buying a cheaper car is one way to limit how much money you can lose, too, as it has less value to lose in the first place…

Here’s why my money would go:
https://www.autotrader.co.uk/car-details/202304116...

https://www.autotrader.co.uk/car-details/202309272...

https://www.autotrader.co.uk/car-details/202306148...

What's wrong with financing a car purchase. The vast majority of new cars on the road or on finance and a lease.

[Marc p]

Silvanus said:

RoVoFob said:

macp said:

sunnyb13 said:

Just buy outright.

Finance on used cars are ridiculous

Would that we could sunny. Would that we could.

You can. You said that you have 10% of the £20k notional budget to put down as a deposit. That’s £2,000 - more than enough to buy a number of decent cars.

Whether you want to run one of those cars is a different matter! If you think that used prices are falling, buying a cheaper car is one way to limit how much money you can lose, too, as it has less value to lose in the first place…

Here’s why my money would go:
https://www.autotrader.co.uk/car-details/202304116...

https://www.autotrader.co.uk/car-details/202309272...

https://www.autotrader.co.uk/car-details/202306148...

What's wrong with financing a car purchase. The vast majority of new cars on the road or on finance and a lease.

Nothing wrong with financing a car, but I do think many do it for the wrong reasons. Although I’ve never done it myself as I’d struggle to really enjoy a car that technically wasn’t mine, I can understand the desire to finance a car you are lusting over. I only really question it when people finance a more mundane car, can’t see the point of financing a run of the mill 3 year old car when you could just buy an older reliable car outright with a far lower TCO.