finance

(06-09-2011 05:01pm)evoqueboy Wrote:  

(06-09-2011 03:59pm)dpaine Wrote:  @Alex

I dont suppose you know the current figures for the guaranteed future value on Land Rovers finance for your spec car?

Finance4cars have a figure of £20,900 for an SD4 5 door dynamic auto with lux thats over 3 years and £16,800 over 4.

What did the mileage have to be? I.e. Was there a limit? Cheers

We set ours at 16k miles per year, quote was coming out at around £580 per month. In reality we have always paid off the GMFV to keep previous vehicles so I would recomended setting the milage at 10k per year to get a better deal. Unless you are someone who will return the car to get a new one then best get the miles correct as the fees can be expensive for anything in excess of your arrangement.

@ Chris R Evo - car loans are often quoted in terms of flat rate interest. The other rates people are quoting are APR rates (or annual percentage interest).

Broadly, flat rate interest means that interest is charged on the total amount you have borrowed for the whole term of the loan, not taking into account any capital repayments you make.

APR interest on the other hand means that interest is only charged on the amount that is actually outstanding (i.e. it takes into account your capital repayments).

An example might help:

FLAT RATE INTEREST:

Car cost: £40,000
Deposit: £10,000
Finance: £30,000
Term: 4 years
Flat rate: 5%
Interest per year: 5% of £30,000 = £1,500
Total interest: £1,500 x 4 years = £6,000

APR INTEREST:

Car cost: £40,000
Deposit: £10,000
Finance: £30,000
Term: 4 years
APR: 5%
Interest per year: £1,180.75
Total interest: £1,180.75 x 4 years = £4,722.98


Can't really show the calcualtions for APR interest because they are a bit more complicated. The point ot be aware of is that fixed rate interest is not equivalent to APR interest, so you need to check what your actual payments are going to be under a fixed rate interest deal and compare this to the best APR deal you can find.

That said, 3% flat rate interest is a pretty good deal.

(06-09-2011 05:01pm)evoqueboy Wrote:  

(06-09-2011 03:59pm)dpaine Wrote:  @Alex

I dont suppose you know the current figures for the guaranteed future value on Land Rovers finance for your spec car?

Finance4cars have a figure of £20,900 for an SD4 5 door dynamic auto with lux thats over 3 years and £16,800 over 4.

What did the mileage have to be? I.e. Was there a limit? Cheers

that was 10k miles a year
over 4 years with 5k deposit it was around 660 a month with the balloon of £16,800 if that helps, that was based on 45k otr - 7.8%apr

Hi all

FYI, I did some calling around to get a PCP / LP quote.

I generally prefer to part finance cars as then my capital is not tied up in a depreciating asset. Plus you are only financing this depreciating portion of the car - not the future asset value.

Got a surprisingly good rate from a company called Prestige Car Finance in the last couple of weeks. The rates probably jump around but the APR was lower than all the rates I saw quoted on this thread.

Give Chris Marriott a call if you are looking for a quote. 0845 070 1324.

(09-09-2011 12:24pm)gomark Wrote:  Hi all

FYI, I did some calling around to get a PCP / LP quote.

I generally prefer to part finance cars as then my capital is not tied up in a depreciating asset. Plus you are only financing this depreciating portion of the car - not the future asset value.

Got a surprisingly good rate from a company called Prestige Car Finance in the last couple of weeks. The rates probably jump around but the APR was lower than all the rates I saw quoted on this thread.

Give Chris Marriott a call if you are looking for a quote. 0845 070 1324.

I have never really looked for car finance via brokers such as Prestige Finance and Broker 4 Cars mentioned in a few threads previous. But assume these organisations are safe and legit? Only because it's hard to find reviews on them so in comparison to major financial institutions they appear slightly illegit.

(09-09-2011 01:13pm)Alex Wrote:  [quote='gomark' pid='10706' dateline='1315567481']
I have never really looked for car finance via brokers such as Prestige Finance and Broker 4 Cars mentioned in a few threads previous. But assume these organisations are safe and legit? Only because it's hard to find reviews on them so in comparison to major financial institutions they appear slightly illegit.

Alex,
The brokers use big well known banks so your agreement is then with the bank. Surely that's legit?

They would all have to work under FSA regs so I personally have no problem paying over £100 less per month against the LR finance option!

Actually brokers are not authorised by the FSA. They are registered by the OFT.
My deal via Prestige is with Clydesdale Bank
Cheers