I have never liked the idea of financing a car but given the current low interest rates, I makes sense to see what is out there.

But the best rate I can find for a new RRS Supercharged with a £40k deposit is 6.2%. Am I looking in the wrong places or is that a competitive rate?

Cheers
Jas

I'd drop James at Lookers Park Royal a line and see what he can do for you
http://www.rrsport.co.uk/forum/topic37631.html?

6.2% isn't that great IMO  ON THE WAY: BMW F21 M140i
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Thanks Beancounter_74. Just PM'd him

Be careful when you compare car dealer interest rates.

Usually they take the loan (say £40,000 for 3 years) and add 6.2% pa times 3 (that's about £7,440). So you'll pay back £47,440 but don't forget the actual amount you owe drops because of your monthly payments so in fact, (very roughly) the amount you owe is about half after 18 months so the real rate is much, much higher !!! Finance companies make you pay the interest first then the capital which is why settlement figures are so high if you close the deal early !

If you have the cash and are getting, say, a net 2% (after tax) your £40K will have gone up by about £2,450 so the 'loan' costs you about £5 grand over the 3 years.

In todays climate a flat rate 6.2% pa is expensive money - try your bank (overdrafts can be cheap because the balance on which you're paying interest is reducing) or mortgage provider.

The dealer is paid commission (extra discount), especially if he's using a manufacturer's financing system.

Is it 6.2% flat rate or is it 6.2 % apr? They are not the same thing !! MY16 AUTOBIOGRAPHY Indus silver with some toys

2012 3.0 SDV6 Luxury gone, but a great motor

Hi Rigsby,

Yes very aware that they are different things and how they are calculated. 6.2% is APR quoted by Oracle which is a bit less than what LR quoted which was 6.9%.

Cheers
Jas

Also watch out for any add ons

My daughter was quoted a flat rate of 4.5% (the max I would expect in today's climate) but the dealer then started to add on arrangement fees etc which increased the rate in real terms to over 6%, a tactic which cost said dealer the sale since she bought elsewhere through someone who was more honest about their rates

Hi PaulCP,

For a Range Rover?

Other manufacturers are doing much better deals. BMW provide finance for most of their models for around 3%. My daughter bought an Audi last year and got a good deal at 3.8%. But the best that Land Rover can do for a Range Rover Sport seems to be 6.9%. The 6.2% APR that I found was from Oracle Finance.

I think, I will stick to Plan A and just use my own money

Jas

Sorry, should have made it clear that it was not for a JLR marque, but my point was beware of being quoted flat rates and then having a few fixed cost add ons

Always ask for APR's not flat rates - last rates are normally half of what the APR actually is

Don't bother with LR finance,,i was quoted 3.4% if I remember rightly with a loan of 25k from Hitachi finance & paying 27.5k back over 5 years.

Andy Andy.
21 Ford Ranger
Gone but not forgotten
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2014 RRS SC Santorini
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Yes, shop around. Halifax do car finance (both hp and pcp) at around 3.9% I think. It may be more convenient to use the dealer, but having an external firm do it is no issue these days... 2010 TDV8

Interesting; I bought a 2015 RRS today from a LR Main Dealer; they wanted me to take out a 2 or 3 year PCP plan with them and reckoned that their 9.1% interest rate was a Good Thing.

I wonder whether a lower rate offered by another finance house would be less attractive than the headline interest rates might suggest due to the guaranteed residual value being less, hence the actual monthly rates being not dissimilar?

I've never looked at PCP in any detail, so am learning. (FWIW I didn't sign up for a PCP).

Halifax are offering a car PCP at 4.3% on loans up to £60,000. You have to be a customer for 3 months or more.

2% cheaper than Land Rover

Companies like M&S and Sainsbury have fianance/loans offers at the moment (and others) from 3.9%APR repayable over 1 - 7 years depending on money borrowed.
I got a rate previously of 3.5% APR on £50k from M&S loans, unsecuredbut had to own property, what no one seemed to be able to better at time.

Another way depending on your credit limits and worthiness, is to pay by Credit Card then transfer balance to Santander Credit Card as a balance transfer at 0% for 41 months, just don't use the card for anything else, if you still have a balance left near finish date of offer, transfer to another credit card at 0% till clear. Many do this now and is the cheapest way currently to borrow money. There is a one off charge at set up of anything from 1.9% to 4.5% so just watch these charges.
Plenty of comparison sites for credit cards, many you can now do a check as to the likely hood of you getting the card, without it leaving a search registered on your credit report, the more "proper searches and applications all reduce your chance of a high credit limit on a card, or refusal, or a hefty APR.
Best of luck finding the best.

If you buy from a dealer it's often HP so you don't own till final payment, loans (non secured), credit cards you own day one.
Always allow for the final purchase fee on last payment to with HP.

The best true figure for interest rates and the one to compare like for like is APR.

A loan may say 3.5% or whatever in adverts but this is a from figure which generally is only offered to about 20% of applicants, you must have a good credit report which goes back for six years, one missed payment anywhere in that time period means you won't get that rate but will be offered a higher rate, due to being seem as a possible risk.

NEVER use flat rates as a way to thinking you are getting a good low rate, for example a 4.5% flat rate can be as much as 13.9% APR. Flat rates are used as a way to entice people to sign, but are always the most expensive true interest rate, beware.. John

RRS MY12 SDV6 HSE. Sumatra Black/Ebony & Walnut + Dynamic Pack, + Cold Climate Pack + Memory Pack, Digital TV/DVD, Premium Leather, Cornering Lights, Cooler/Fridge Box, & most Options.