645

Hi - I've got a simple problem, but getting rather frustrated! Hope someone out there in Scoobyland can offer some advice!

Looking at coming out of my company car scheme and buying a car privately. Looking at a 30K LR Discovery. 5K cash, 25K loan. So far, easy. Decided to look on MoneySupermarket.com. Cheapest rate came out at Northern Rock, no penalty/early redemption, so perfect. Typical 6.2% APR. and well within my affordability.

So, phoned them up - after 1/2 hour of detailed questions, they offer me..... 7.4%....Arggghhh!!! How irritating. I have no debt outside the mortgage, no credit cards, CCJs etc etc etc. So I asked why I hadn't got the typical rate and was told no particular reason, other than to say it could be any number of factors, potentially nothing to do with affordability!


So...What I'd like to know is...is there an honest loan company out there who actually offer the rates they advertise??!!! And I thought I'd be about as low risk as you could get!

totalllama

Nationwide seem to bleet on about offering the same rate to everyone. May be worth a look....

supernick

Dont know what rates Intelligent Finance offer at the mo but i have used them in the past and they are no hassle at all - very good. And always very competitive

mannyo

I think you have already hit the nail on the head.

Strange as it seems you might not have the correct type of debt. Chances are if you had one or two credit cards you may well have been offered a better deal. I know its odd, but some lenders like to see a history of being able to keep things like credit cards well managed, unlike a mortgage where there is no temptation to spend.

Its common practice now in the loan industry to quote an APR based on your own circumstances and nearly all quote a typical APR. You could do what I did, play several lenders against each other and depending on if they want your business they will move on the APR.

nicko13uk

Northern Rock did this to me - advertised the best rate, then offered me a higher rate for a car loan. Funny thing is, i have good credit history, and a mortgage with Northern Rock!
Told them to poke it and went with Alliance and Leicester who do give you the rate they advertise.

Nick

Phantom_Flan_Flinger

Might not be anymore as the A&L website says 6.3% APR Typical.

It'll be hard to find an advertised rate that doesn't say "typical."

Just be aware that the more you go through the application process and a credit search is done, the more your credit rating is affected.

Dave.

gazza-uk

banks have to publish typical APR by law

Hanley

Some banks will now set the interest rate indivually for customers, based on the customers prepensity to pay.

For example, they might have assessed you and thought you would accept this rate.

Hanley

I had a hand in creating the A & L's system for differing rates based on credit score, prespensity to pay etc

So no, you won't always get the advertised rate.

Hanley

I've signed up with Credit Expert and I now know every inch of my credit report.

Also a bit gutted that my score was 979 out of a 1000, bloody Vodafone saying I made a late payment about a squillion years ago!!!

They make interesting reading.

I receive an e-mail and text alert whenever there is activity on my report, this could be triggered by new searches for fraudlent loan or credit card applications etc

In the current climate of identity fraud and card theft it's a pretty good investment at £5 per month.

stilover

Simple answer is this.

Buy a Disco from a dealer instead and state that you need finance. You can get 6.2% and Northern Rock, but you'd rather get finance through the dealer to keep it all under one roof. The dealer will get very close to, if not the same as 6.2%.

I've done this with every car I've bought with finance even though I know I'd never get the rate the banks advertise.

The dealer gets a bonus from the finance company so will try his best to get you the rate you want.

Nigel H

I'm doing this at the moment, and luckily I can get 6.9% APR from First Direct. I may be able to get it cheaper, but not by much.

The dealer tried to sell me his deal (on the basis that his flat rate of 3.3% was cheaper that an APR of 6.9% ). It wasn't - it was very easy to work it out, but to his credit (buh bum) he was close. I'd suggest that you find the best deal you can A&L, IF, Cahoot, etc. and then see if the dealer can beat that. There's a good chance.

645

I was sort of expecting this type reply from someone - it appears every thread gets one

Here's your answer... I get a monthly car allowance, and I want to spend it on a car. What do you suggest I do - do without a car for 2 years while I save up?

Phantom_Flan_Flinger

As mentioned above, just be wary of dealers trying to sell you their loan by telling you the flat rate and not the APR.

645

...suspected wrong, in fact. However, I have other things in mind for the savings, some of which are already set aside for a rainy day.

It was a simple question, but you're insistent on taking this down another route. I don't want a "cheap" runabout car. Understood? I save money as it is. I want a nice car to drive around in, be proud of, enjoy - it's one of the few things I enjoy spending money on, however wasteful/imprudent you consider it to be. The company gives me x amount on top of my base, all of which I'm more than happy to spend on a car.

Thanks for your comments, but you're way off track.