Soaring Finance Rates for car purchases
Discussion
Hi there - can I ask, what are people doing about the soaring finance rates for new/nearly new car purchases? I've been looking at a few things and seeing manufacturer rates over 12% for some models on finance.
Are people just buying 'any old crap at 5%' as manufacturers get shot of models they want to sell?
Are people just buying 'any old crap at 5%' as manufacturers get shot of models they want to sell?
Depends I have already seen some downward movement from some on the rates, and the old tricks of new rates on new cars being lower has reappeared on some which may or may not make a new car more cost effective.
Mine was taken out prior to the increases, but in honesty I am planning on possibly just paying the balloon off and refinancing it as I doubt it being petrol only (no hybrid at all!) is long for this world currently.
Mine was taken out prior to the increases, but in honesty I am planning on possibly just paying the balloon off and refinancing it as I doubt it being petrol only (no hybrid at all!) is long for this world currently.
Its all to do with the cost of money.Look at what your bank is offering as an APR and see if your dealer will match or beat it.No loan for a car should be over 10% APR, if it is the dealer is making a margin on it. Ask the dealer what his base rate is and tell them you will pay no more. Some big dealer groups have a set APR figure they do every deal at for example 12.9% APR, but they'll be making a margin if over 10%.
Genuine 0% deals have gone for now, the only time you may get a nice low rate is on a new car where the manufacturer is subsidising the interest rate.
Genuine 0% deals have gone for now, the only time you may get a nice low rate is on a new car where the manufacturer is subsidising the interest rate.
corcoran said:
Hi there - can I ask, what are people doing about the soaring finance rates for new/nearly new car purchases? I've been looking at a few things and seeing manufacturer rates over 12% for some models on finance.
Are people just buying 'any old crap at 5%' as manufacturers get shot of models they want to sell?
Bad luck that the car finance companies happened to set their interest rates at peak inflation, who’d have guessed!Are people just buying 'any old crap at 5%' as manufacturers get shot of models they want to sell?
Some decent cars have reasonable rates still
Eg Tesla Y, 2.9%
Wife recently changed her car, was looking at a Volvo first, but their extortionate rate was deal breaker.
Went elsewhere
Can get a bank loan for 5.5% with my Bank
When the time comes to change mine I’ll be paying cash. Rather than 7k interest..
Not wanting to sound snobby, but 'cutting my cloth'. I 'bought' my current car because it could comfortably afford it at 2.5% and a chunky GFV balloon. If I leased the equivalent car now, its nearly double the cost because it's 10% or so and the GFVs have fallen a lot. I'm not doing that. My income has risen by 15%, but I don't think I even want to spend 15% more than I do now, I’d rather spend the money on other things.
Frankly, my priorities have changed, nothing like a cost-of-living squeeze to make you reevaluate. My Wife and I spend a fortune on leasing and driving, a lot of it is unavoidable, we both must drive for work, but I'm just not that interesting in owning a supposedly fun car, when driving is rarely, if ever, fun these days.
Frankly, my priorities have changed, nothing like a cost-of-living squeeze to make you reevaluate. My Wife and I spend a fortune on leasing and driving, a lot of it is unavoidable, we both must drive for work, but I'm just not that interesting in owning a supposedly fun car, when driving is rarely, if ever, fun these days.
Out of interest are we talking about new cars here?
I'd be fascinated to hear from everyone posting in this thread how many new cars they have bought in their lifetime?
I must have a very old fashioned mind set and am adverse to debt so at the age of 50 I have only ever bought one new car in my life and have never leased or pcped. I did take a bank loan out on my very first (and very second hand car) but since then I've always and only paid cash.
When I look at the new price of cars these days I cannot believe the inflation in the outright prices caused by lease and rental schemes. Car manufacturers have exploited the rental market to push up the outright prices through the zero interest rate years and will now pay the price for that as they realise that with normalised rates noone can afford new cars.
I'd be fascinated to hear from everyone posting in this thread how many new cars they have bought in their lifetime?
I must have a very old fashioned mind set and am adverse to debt so at the age of 50 I have only ever bought one new car in my life and have never leased or pcped. I did take a bank loan out on my very first (and very second hand car) but since then I've always and only paid cash.
When I look at the new price of cars these days I cannot believe the inflation in the outright prices caused by lease and rental schemes. Car manufacturers have exploited the rental market to push up the outright prices through the zero interest rate years and will now pay the price for that as they realise that with normalised rates noone can afford new cars.
As always, it depends, and everyone is different.
Salary sacrifice, bought through business less affected I suppose.
4 yr pcp instead of 3 yr to spread out the early years of higher depreciation
just not add the 'carbon package'
downsize to the smaller engine to pay less tax and save running costs
go our for food once a month less
or just buy used.
Salary sacrifice, bought through business less affected I suppose.
4 yr pcp instead of 3 yr to spread out the early years of higher depreciation
just not add the 'carbon package'
downsize to the smaller engine to pay less tax and save running costs
go our for food once a month less
or just buy used.
Hedgedhog said:
I'd be fascinated to hear from everyone posting in this thread how many new cars they have bought in their lifetime?
Mid-30s and bought my first new car this year (excluding a few company cars and motorcycles). Paid cash and intend to keep it for a long time. I doubt I’ll ever buy new again. As the OP - I've never spent more than 5K on a car in my life (early 40's) and have been happy driving mid-00's BMW's for the last 10 or so years but as someone's identified - driving is no longer really fun, cities are enforcing 20mph and my journeys are either very short, or 100+ miles for family visits.
I've actually ended up PCP'ing at 8.9% over 2 years from my bank, as I have the cash in hand to buy the car I want (it's 25K -- an amount completely alien to me!!!) but with minimal 'tax/interest', I can then put off buying the vehicle outright until the end of the lease (which I will do).
I've actually ended up PCP'ing at 8.9% over 2 years from my bank, as I have the cash in hand to buy the car I want (it's 25K -- an amount completely alien to me!!!) but with minimal 'tax/interest', I can then put off buying the vehicle outright until the end of the lease (which I will do).
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