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Violetpiano



Member Since: 03 Jun 2014
Location: London
Posts: 347

United Kingdom 
6.2% A Good Deal?

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

Post #440109 Tue Oct 21 2014 3:08pm
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Beancounter_74



Member Since: 11 Oct 2011
Location: Down here now...
Posts: 5792

England 

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

6.2% isn't that great IMO Neutral BMW F31 335D MSport+ xDrive Touring - Mineral Grey w/ Coral interior
MERCEDES GL350 - Metallic Navy Blue w/Grey interior

GONE: Land Rover Discovery 4 HSE - Stornaway Grey w/Black Interior (starting to wish we'd kept it Surprised )
GONE: BMW F10 520D MSport - Carbon Black
GONE:MY12 RRS SDV6 HSE Sumatra/Ivory/Grand Black Privacy glass

Post #440113 Tue Oct 21 2014 4:34pm
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Violetpiano



Member Since: 03 Jun 2014
Location: London
Posts: 347

United Kingdom 

Thanks Beancounter_74. Just PM'd him Thumbs Up

Post #440116 Tue Oct 21 2014 4:58pm
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drdelrrs



Member Since: 02 Nov 2010
Location: UK
Posts: 1105

United Kingdom 2012 Range Rover Sport 3.0 TDV6 HSE Lux Orkney Grey

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.

Post #440117 Tue Oct 21 2014 5:01pm
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rigsby



Member Since: 20 Apr 2012
Location: Portsmouth
Posts: 879

England 

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

Post #440158 Tue Oct 21 2014 9:26pm
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Violetpiano



Member Since: 03 Jun 2014
Location: London
Posts: 347

United Kingdom 

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

Post #440159 Tue Oct 21 2014 9:46pm
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Paulcp



Member Since: 18 Apr 2013
Location: Suffolk
Posts: 284

2013 Range Rover Sport SDV6 HSE Atacama Sand

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

Post #440188 Wed Oct 22 2014 1:58pm
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Violetpiano



Member Since: 03 Jun 2014
Location: London
Posts: 347

United Kingdom 

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 Smile

Jas

Post #440189 Wed Oct 22 2014 2:03pm
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Paulcp



Member Since: 18 Apr 2013
Location: Suffolk
Posts: 284

2013 Range Rover Sport SDV6 HSE Atacama Sand

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

Post #440201 Wed Oct 22 2014 4:18pm
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Flat0ut



Member Since: 11 Oct 2014
Location: London
Posts: 33

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

Post #508965 Sun Oct 30 2016 7:07pm
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Tyrefitter



Member Since: 19 Jul 2015
Location: East Yorkshire
Posts: 1314

United Kingdom 2013 Range Rover Sport Supercharged Autobiography Fuji White

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 2014 RRS SC santorino,coris roof.
2016 VW Amarok Highline,candy white
2014 Evoque D-Lux Fuji
Previous motor.
2014 RRS AB FUJI
2012 RRS Dynamic red edition Fuji
2012 RRS SE santorino
2015 Navara White
2008 RRS white TDV8
2007 RRS black TDV8
2002 RR Vogue
1996 P38 2.5 HSE.

Post #508996 Mon Oct 31 2016 11:04am
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Stecla



Member Since: 20 Jun 2015
Location: Newbury
Posts: 157

England 2010 Range Rover Sport TDV8 HSE Stornoway Grey

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

Post #509037 Mon Oct 31 2016 8:39pm
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hafman



Member Since: 16 Oct 2016
Location: West Sussex
Posts: 65

United Kingdom 

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. Shocked

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).

Post #509041 Mon Oct 31 2016 9:04pm
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jim4244



Member Since: 16 Feb 2012
Location: No
Posts: 1041

England 2013 Range Rover Sport SDV6 HSE Santorini Black

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

Post #509089 Tue Nov 01 2016 1:43pm
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Johnski



Member Since: 02 Sep 2015
Location: North Wales & North Yorkshire
Posts: 1402

Wales 2012 Range Rover Sport SDV6 HSE Lux Sumatra Black

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.

Post #509126 Tue Nov 01 2016 11:06pm
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