Had one of the lads at work ask me about this as he is looking at another car.
He has found one that he would like and asked if it is possible to use a company such as Black Horse , etc, to give the finance for the vehicle even though it is a private sale.
Obviously garages can do this as they have agreement with who ever they use, but is it possible for a private individual to arrange this instead of applying for a personal loan with a bank .

Anyone ever done this?? If so who did you use??

I think he just wants atraight forward repayment agreement for say five years, not one with baloons at the end or anything.

Any info appreciated.

 

yes M&S Money do a car finance the money go's into your account and you buy the car as normal, i know this coz my daughter works for them

s

just noticed about the balloon

they do have a ballon at the end, you have 3 choices, hand in the car, pay off the balance in full or carry on with the same payments til car is paid for. you could take a 3 year deal and pay off ballon over 2 years job done. i think you can also opt to not have a balloon as well. have a look

 

Bank loan?

 

Think its only non securered on bank loan. Car finance is only available from traders as far as I know mate.

 

heres the link

Car Loan - Loans - M&S Money

 

bloody hell a 12 month loan for £7500 is at a really good price on there..8k total repayment

must resist!

as i dont want it to affect my entitlement to a grant when i go back to uni in september and come off my placement year.

 

The M&S deal is about £23 lower than a normal loan according to moneysupermarket. For loans of £5000 its not competitive compared to a normal loan.

Also, its interesting to see that the rates on unsecured loans as increased over the last month. So much for the government getting banks to loan to us again.

 

They've got to pay for their 'fat cat bonus' somehow.

Not bad, when after the banks srew up soooo much, that they have to get bailed out by the Government, which means us tax payers & they still get a bonus!!!!

Sorry a little off topic.....

 

Having worked for a financing company before I would recommend your mate looks at the APR or interest he is going to be charged over the period. Then take into consideration that the current bank of england base rate is 1%, thus most financing institutes will be making heft returns.

The link:

Car Loan - Loans - M&S Money

indicates a rate of 9% odd ......that is crazy to pay given the current base rate is 1%. I could understand if it were circa 4-5% but not over 9 times more! Even at 4-5% it is steep, however if he can fix for 5 years then it may become advantageous say in 3 years time when the interest rates go the other way.

Perhaps a cheaper source of financing would be to look at credit cards which offer either a "Life Time Balance" transfer or a "0%" over a fixed period. Credit card companies such as MBNA offer better loan rates than say car financing companies which would build a higher margin on the rate itself to cover risk of lending out the money.

Car financing companies tend to be like a broker - so why not cut out these middle people (who will have their add their own margin from what they are borrowing to lend out) and approach institutes such as MBNA?

JP

 

Balance transfer credit cards are great if you've got the discipline. You'll get charged around 3% of the balance, but compare that to the 9% example above!

 

Jamie is this guy at your work looking for a 22B

PS it's been a long time since I saw you last, drop me a note.

 

Spot on m8....I wouldn't even think about paying 9.9% especially over a 5 year term.....it is very unlikely that even bank of england rate will come close to this if you took the long term view.

 

LOL matey, you dont miss much do you!!!!

The only guy at my work thats looking at a 22B is me . Im fortunate enough to be able to pay for the beauty in heard earned cash after a short break at Acergy before returning back to S Club 7 in Nov last year

Re the car finance question, it was aftrer a conversation with one of the lads onboard the other day about buying cars and he brought up the question about applying for finance without using a garage. I knew that I would find the answer on here if I asked

Will drop you a PM in a bit anyway, see if you have any info on the "twenty two bravo"

And thanks to those who have replied to the topic so far.

Regards

Jamie

 

Not many credit cards that you could transfer 17K over to though is there???

Plus you would need to find the money in the first place to buy the car before transfering the debt??

Or am I up the wrong path?

 

Depends what his credit history is like etc. I've not been offered a £17k limit, but then I dont earn the type of money I'm guessing your mate would earn and I was given £9k. I could easily have got 2 cards at £9k each!!

You dont need the cash up front at all. What I did was pay for the car using the card I had, whilst applying for the new card. You then simply transfer the balance to the new card and take the hit of the 3% fee. Then there are up to 16 months interest free (depending on the card) to pay all or as much as you can of the debt.

You can also choose how much of the balance to transfer, so you could in theory have 2 cards and split the £17k across them.

Might not go down too well if you were trying to buy a property and having to state £17k on credit cards though

 

Should have pointed out that you would of course need to have £17k available to spend on current cards before transferring.

 

Yep, would probably need to ask his wife if there was any credit left on her "shopping" credit cards, that would probably get 17K.

 

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