Hi all

With the Bank of England base rate at just 0.25% I do not think that the current Land Rover finance rate of 6.9% offer particularly good value.

Has anyone used anywhere else to finance their RRS purchase? There must be some far better rates out there than are currently being offered by Land Rover?

Jim

Car loans are never cheap the manufacturer is borrowing the cash at a few point over LIBOR and then lend on, they and dealer take a bit so at least two parties are profiting from you

If you're borrowing, the cheapest money would be by upping your mortgage and increasing payments to repay the uplift within your 2, 3 or 4 year 'car loan' period. Building societies can be a source or an overdraft can be a deal because the interest is on a declining balance whereas car loans are usually on the total across the whole period (enables quoting a low (headline) interest rate.

Use Excel and do your sums - the last thing most lender want is to tell you the truth.

I normally pay cash or take LR 0% deal but this time I'm paying the extortionate LR rate for peace of mind in view of problems being posted by owners

It's easier to reject the vehicle if faulty and I have flexibility to hand back at end if it's worth less than GFV, trade or pay balloon and keep  Wanted a Series 2 LR since childhood but previously owned MY16 Disco Sport HSE TD4 Auto, MY13 RR Sport Black Edition TDV6 Auto, MY10 RR Sport HSE TDV6 Auto, 2007 Freelander 1 Freestyle TD4 Soft Top, 2009 Freelander 2 GS TD4 Auto, 2007 Freelander 2 GS TD4, 2004 Disco 2 Metropolis Auto, 2002 Disco 2 GS, 2000 Freelander 1 SE TD4 SW

Still hoping for a S2 one day!

^^^^ Unfortunately JLRs record on customer service and the reduction in material / build quality is making this sort of purchasing method a prudent move.

Paying the extra finance cost or using a credit card as an 'insurance' for the extra muscle is a sad but almost essential way forward on many purchases.

we keep receiving promotional letters from Halifax offering 4.2% finance and deal with 90% of garages apparently Nanocom Evo

Hi,

I'm seeing the nice lady at TSB on Friday.

Been offered 3.9% if I borrow more than £7500 and I can over pay too.

Scrumps Somerset - Where the apples do grow and the cider do flow!
2021 Defender 90 D250 HSE in Tasman with white roof.
24MY D300 AB - Verasine Blue - 😀
19MY SDV6 AB - Byron Blue - Gone
17MY D5 SDV6 HSE - Firenze Red - Gone
16MY SDV6 AB -Aruba Silver - Gone
13.5MY SDV6 "HSE Black" - Baltic Blue - Gone
10MY TDV8 HSE Galway Green - Gone
14MY D4 HSE in Scotia Grey - Gone
05 TD5 D90 CSW in Cairns Blue

Scrumps, is that a straight forward load from the TSB or a PCP?

Jim

Straight personal loan.

Just checked the website and generally available - you only have to have an account for instant money - non-account holders have to wait 2 days (apparently)

Scrumps Somerset - Where the apples do grow and the cider do flow!
2021 Defender 90 D250 HSE in Tasman with white roof.
24MY D300 AB - Verasine Blue - 😀
19MY SDV6 AB - Byron Blue - Gone
17MY D5 SDV6 HSE - Firenze Red - Gone
16MY SDV6 AB -Aruba Silver - Gone
13.5MY SDV6 "HSE Black" - Baltic Blue - Gone
10MY TDV8 HSE Galway Green - Gone
14MY D4 HSE in Scotia Grey - Gone
05 TD5 D90 CSW in Cairns Blue

Been offered 3.49% with Sainsburys up to 35k, unsecured personal loan recently. Turned it down as Non LR dealer offered exactly the same but without front loading, so I can reduce our payments if I over pay. I agree LR was way too high. Even with PCP they barely matched the monthly payments with a 16k balloon payment.

The pcps for me are very expensive way of getting behind the wheel. However my dealer says most of the cars are soldlike this. I did a few examples of whacking a deposit down and having monthly payment of about 600. The interest overall on a 3 year pcp adds up to about 10k over the term. Crazy if you ask me that most people decide to do this.

Ok so I paid most of it cash and had a 3 year bank loan for 15k. Which hopefully at 439 a month covers a chunk of the depreciation. But over the term only £800 is interest.

Yes, I'm surprised too at the popularity of PCPs and certainly the salesmen are incentivised to sell them. I went to a VW dealer to look at a Golf R as an everyday runaround and a salesman with bad breath (you'd think his colleagues or wife/gf would take him to task) would not stop talking about the supposed benefits. He was crestfallen when I told him I'd be paying cash and, by the way, we hadn't yet talked about discounts.

I think PCPs probably appeal to those who must have something now, akin to paying a monthly rental. The car is wrapped up into a monthly payment which means they can see the instant impact on their finances without thinking too hard about the long term. Mark

SVR in Estoril Blue

Dealers have told me on several occasions that it simply makes more money for them to sell finance on top of the car. I said to one that i would be paying cash and asked for discount and he said i'd be better going with a PCP deal and he could then offer discount. I think they could be make a grand or more out of selling the finance. Don't quote me on this tho, just going by what an IFA makes on selling mortgages etc.

PCP is crazy, but it allows folks to buy expensive motors at a affordable monthly rate and then gives them the option at the end of trading it in, paying it up cash or walking away.

I prefer a bank loan tbh which i control, but got to admit Arnold Clark offered me the payments same as my own bank AND i can overpay to bring payments down. Cracking deal!

I'm sure it's good business for LR because they will be able to borrow money at much less than 6.9% and leaving aside a few transactions which go bad, there's a good margin plus of course they sell the car. Mark

SVR in Estoril Blue

I am doing mine through Oracle Car Finance. Virtually the same deal at LR but 4.9%. Still have the option to hand the car back at the end.