What Is Generally Cheaper?

  • We are currently upgrading MFK. thanks! -neo
armaggedonx

armaggedonx

Fire Eel
MFK Member
Dec 17, 2006
1,074
4
68
35
Glasgow
www.herpforum.com
Is it generally cheaper buying a vehicle through finance or taking out a bank loan and paying back the loan? I have found a motorbike that I WANT!!!!!!

Im with nationwide if that helps anyone lol

And the bike is £13,299 :P

Cheers,
Keith
 
I've found those two options to be about the same.Here,your credit rating rules the day.
 
If you finance from what I have heard you will pay for it twice pretty much
 
^not really. Not for a vehicle anyways. house yes.

It will be close. best is to check. prob bank will be a slight bit better
 
krichardson;4781771; said:
I've found those two options to be about the same.Here,your credit rating rules the day.
Click to expand...

generally that's not completely true, it depends on your income/debt ratio

i have an excellent credit rating, the best i've had in my whole life but it don't exactly mean that i can walk into any bank or store and get approved for a loan or a card. i even got turned down for a friggin best buy card. i got a house and 3 car payments under my name. i don't exactly make 100k/yr either :(
 
It is normally better off buying through a bank loan because the APR is normally much cheaper.
However, if you can find a decent deposit (usually 25-50%) then you can usually get a 0% APR for the term of the finance deal.
Look around and play the different dealerships against each other, they are all desparate for business right now and will cut each others throats to get your money.
It is advisible to check your credit history at experian.co.uk to make sure you have no red flags against you and so you can get mistakes fixed before applying for credit. They do a free 30 day trial. They offer a credit score for a fixed price but it is useless and is offered as a gimmick to get your money.



A note about UK credit for the americans here. There is no more universal credit score like there is in the USA, each lender has a list of perfect creditors. You may the chosen one for one lender but the devil to another. There is no blacklist. Each lender score you on many things at the time of your application, where one may reject you another lender may not.
Paying cards and loans off in full is not the best thing either and can actually get you rejected, meeting monthly payments without fail always looks better because it tells the lender they can make money off of you (interest is profit).
 
Almost always, a bank secured loan is a better deal. The way dealerships work is on an old principle called a 4 square chart. In it, they shift around numbers to get themselves the most amount of your money as possible. You may get a better deal on the trade in, but they jack up the cost of financing. They may give you a good deal on the financing, but the price and trade in are hosed. Here's a breakdown of how it works:
http://www.edmunds.com/car-loan/four-square-basics.html

The best thing you can do is actually use a purchasing service through your bank - if it offers one. They don't have a dealership to run. They don't have rent to pay on their nice big lot with all the balloons. The purchasing service finds the vehicle (or bike in this case), typically under invoice. All without the hassle of negotiations, scumbag car salesmen, or compromising on features because it's on the lot.
 
sell all of your fish and get the bike. then there is no need to ever come back here where i gave you the best advice to thank me


run on
 
You must log in or register to reply here.
MonsterFishKeepers.com
Top Bottom