Autotrader Car Finance

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Beav
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Autotrader Car Finance

Post by Beav » Sun Mar 25, 2018 7:53 am

Hi guys,

I have been looking for a new car on autotrader and noticed they let you choose "pay monthly" limit now and im guessing this finance is through autotrader? Has anyone had any experience with there finance deals?

Thought I would ask here first before I go view the car. I have inquired with banks and other finance companies but because I want to borrow less than 5k the % seems to the sky high. On the other hand autotrader % APR doesn't seem to bad. I only want to be spending around £100 a month with £2500 deposit.

Thanks in advance
dewaltdisney
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Re: Autotrader Car Finance

Post by dewaltdisney » Sun Mar 25, 2018 9:45 am

Car finance is a complicated equation. You are up against finance charges, depreciation and servicing costs and also residual value of the vehicle so to minimise ownership costs you have to make decisions on which way to go. Lots of small car deals are PCP now and this will give you a new car for three years for a deposit and a reasonable monthly amount. In essence you fund the depreciation and the residual value clears the debt at the end. Usually the car is worth more than the guaranteed future value which gives you a deposit for the next car. The good thing is you have the three year manufacturers warranty if anything goes wrong and quite frankly the cost of a simple repair these days can be huge. You have to look after the car and keep to contract mileage if you want to walk away at the end but it is not so crucial if you go again.

Compare this, for the same outlay, to having a 6 year old car on a personal loan and you can see the benefits of going PCP. I have had PCP's on my wife's car for nearly 20 years and the monthly costs are in real terms much the same still. We are on our fourth Hyundai I-10 and the deal includes free servicing. It is a very low cost compared to buying.

It is worth checking out. Get in before the end of the month as this is the best time to buy whilst dealers are chasing the end of quarter manufacturers bonus.

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big-all
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Re: Autotrader Car Finance

Post by big-all » Sun Mar 25, 2018 12:57 pm

0% for how long ??
it wont be for very long and what is the rate after the honeymoon period :dunno:
we are all ------------------still learning
Mrwood777
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Re: Autotrader Car Finance

Post by Mrwood777 » Sun Mar 25, 2018 5:09 pm

Loans are pretty low at the moment. 3.3% on £5k with a reputable lender. Can’t believe you’d get a better deal via autotrader
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