Hello again! Right, Ive looked at a Vrs the other day and the car looks amazing! It's never had a previous owner because it used to be a rental car. I put a deposit of £100 for it to secure it as I have to have it! My wife also love it! I do have a question about borrowing the money, so I hope someone can help me with some info. First of all the car dealer has offered me to pay for the car for 5 years on 12.1%APR which I think is a bit too high. I went on supermarket.com and found a loan for 7.7%APR variable with Sainsbury's which sounds a lot better. The question is as all the lenders are set at Variable rates would the 7.7% APR not raise very high? I can't see it going down! I've never borrowed money in this scale before as my parents always bought cars for me in the past and I paid them back on 0%APR!!! Unfortunately they can't afford to buy this Skoda for me so I have to borrow the money. I also heard that borrowing money by increasing my mortgage would be even better but how does that work? would 7.7%APR be a save bet? Anyone that saw this VRS would buy it straight away, it looks brand new!

Ok, just an update. I've found out from the seller that the car was owned by a leasing company which explains why DVLA say it had 0 previous owners. With so many different opinions on this subject, I've totaly stuck! I'm now worried about what people have said about people thrashing it. The car looks amazing and drives fantastic! The only problem now is, i'm steering towards a Honda Civic Type-R FN-2 instead. There is no other Skoda Vrs for sale in my budget anywhere other than over 100 miles away! Someone please tell me it's not all bad buying an ex-leasing car. :'(

Edited 1 December, 201015 yr by VRS-R

Is it variable APR or typical APR?

The first means the rate can change, the second is that the majority of applicants (at least 66% I think) will get the rate specified but if your credit rating is suspect the rate can vary upwards...

Don't add it to the mortgage as it sounds good but you'll be paying interest on the car until the mortgage is paid, yes the payments may be smaller but you could be paying the car off for 20 years...

Edit: I've just had a quick look at the Sainsburys finance website and they don't appear to offer variable APR so the moneysupermarket one is probably referring the typical variable rate which means that you'll be offered an APR rate of X (which may vary from the 7.7%) and that won't change during the duration of the repayment period

Edited 30 November, 201015 yr by Raglits

imo buying a car on finance is wrong as you will be paying loads more and would = a much much better car

save your cash and once you have enough then go buy one

that is imo only 7.7 is good but its variable so could go throught the roof

You don't want to put money for a car on your mortgage!

And you ought to be able to get way better than 12% for a car loan. If you're happy for it to be secured on the car, then look for car loans rather than personal loans.

HTH

I also heard that borrowing money by increasing my mortgage would be even better but how does that work?

You contact your mortgage provider and they add the amount you want to borrow to your mortgage. If the equity in your property doesn't cover this, they're likely to say no though. As it'll be an amount secured against your property then it'll most likely be a cheaper rate than unsecured borrowing; but if you can't make the payments, you lose your house.

would 7.7%APR be a save bet?

It depends on what you want from the loan? Would you rather commit to a higher amount that's likely to be fairly static (ie. fixed rate), or would you rather opt for a lower amount now, but accept that it might potentially rise to more in the future?

No one has a crystal ball so no one will be able to tell you if gambling on the latter is going to pay off.

Anyone that saw this VRS would buy it straight away, it looks brand new!

Unless they then spotted it was an ex-rental car, in which case they'd be unlikely to commit to 5 years of finance on it (well, I know I wouldn't!).

I'm sure Skoda are offering a low(er) rate of finance through its dealers on used cars.

if this LINK works it shows 5.8%apr

imo buying a car on finance is wrong as you will be paying loads more and would = a much much better car

save your cash and once you have enough then go buy one

that is imo only 7.7 is good but its variable so could go throught the roof

Yeah, that's just slightly flawed though, unless he wanted to do without a car for 5 years.

The sainsbury's loan is a fixed rate.

As previous poster has mentioned they will offer different rates to each applicant based on circumstances.

Repayments won't vary over the 5 years.

How much is the car? The current VAT free deal with 0% from Skoda on new cars is ery good and makes a lot of nearly new cars look expensive so worth a check first. Use Drive the Deal to get an idea of price. Also you say the car has had no owner but if used as a rental it would have been owned by the rental car unless it was ordered for a rental company but never used.

I'm sure Skoda are offering a low(er) rate of finance through its dealers on used cars.

if this LINK works it shows 5.8%apr

5.8%APR!!!! That is amazing!! I phoned up straight away and indeed they do, do this at this rate until mid December. Cheers! I will have to go there when all the bloody snow has gone. lol I shall also add you to my Xbox friends list My Xbox live name = doubledutch35

Edited 30 November, 201015 yr by VRS-R

How much is the car? The current VAT free deal with 0% from Skoda on new cars is ery good and makes a lot of nearly new cars look expensive so worth a check first. Use Drive the Deal to get an idea of price. Also you say the car has had no owner but if used as a rental it would have been owned by the rental car unless it was ordered for a rental company but never used.

It was used by the rental company. However when I did a car history check with DVLA it came back as previous owners 0? But everything else from DVLA checks out fine.

Edited 30 November, 201015 yr by VRS-R

Zero registered owners maybe, but lots and lots of different drivers.

The number of owners on the V5 is irrelevant, what difference really does 1 or 2 owners make?

I'd be more worried about the many different drivers who will have been thrashing it to within an inch of its life from day one knowing full well it ain't their car that they are flogging to death.

I hope its cheap.

Zero registered owners maybe, but lots and lots of different drivers.

The number of owners on the V5 is irrelevant, what difference really does 1 or 2 owners make?

I'd be more worried about the many different drivers who will have been thrashing it to within an inch of its life from day one knowing full well it ain't their car that they are flogging to death.

I hope its cheap.

It's £8500 + I get £1.700 for my 52 plate Honda Civic 1.7 CTDI with 84k miles on clock. To be honest I wanted the book value of my car which is £2500 acording to What Car? Honda offered me £2000 for my car but this dealer won't budge not even a £500 discount! Maybe I should try the Skoda dealer as they have a nice blue VRS for sale with less miles but £500 more. Do you think they would give me £2000 for my Honda? in cash?

I'm sure Skoda are offering a low(er) rate of finance through its dealers on used cars.

if this LINK works it shows 5.8%apr

I just phoned them and the 5.8%APR is only for 3 years contract. Not in my budget unfortunately.

You contact your mortgage provider and they add the amount you want to borrow to your mortgage. If the equity in your property doesn't cover this, they're likely to say no though. As it'll be an amount secured against your property then it'll most likely be a cheaper rate than unsecured borrowing; but if you can't make the payments, you lose your house.

It depends on what you want from the loan? Would you rather commit to a higher amount that's likely to be fairly static (ie. fixed rate), or would you rather opt for a lower amount now, but accept that it might potentially rise to more in the future?

No one has a crystal ball so no one will be able to tell you if gambling on the latter is going to pay off.

Unless they then spotted it was an ex-rental car, in which case they'd be unlikely to commit to 5 years of finance on it (well, I know I wouldn't!).

I don't see the problem to be honest. I done a full history on the car on DVLA and there are no bad indications about this car. I've also checked the documents and the car has being serviced everytime by Skoda and no problems found. I agree that as a pre rental car it could have being thrashed about but that could be the same if it was owned by 1 previous owner as well. It's a risk buying any second hand car which is why many people buy from a main dealer. Unfortunately main dealers charge a lot of money and they are not always the best of cars either. I've done the history checks of this car and i'm very happy with the results, and i'm sure the VRS is fine.

I agree that as a pre rental car it could have being thrashed about but that could be the same if it was owned by 1 previous owner as well.

The difference is that a rental car *has* been thrashed - with 1 previous owner, it's not a certainty. Besides which, my point was more about committing to one financially for 5 years - an abused car is more likely to have worn consumables that'll need replacing, and is also more likely to develop expensive issues once out of warranty.

If it was me, i would not get a ex hire car. Most people who hire the expensive cars tend to show off to the mates what silly things they can do with them. I.E silly speeds, to much load on the engine when cold.

Also hire places dont really give a monkeys about the cars either, my office is near national hire and i see them ****ing aroud all the time with expensive motors, over revving and driving at speed to go 10 feet. I bet the turbo must love all the semi warm oil stucked in it :wonder:

to me the fsh doesn't mean to much on a new car, cos the 1st service is an oil change only, second one is oil + filter, and I think the pads get checked on the third one.

Since these cars from hire places would be going to 1 place to be serviced at high volume, i dont think the garage would look for other areas of concern the on the car I.E pads, suspension and so forth.

i would personally get a loan from a bank, and buy it from an enthusiast, or have a really good look around. never jump for the first car you see.

Hope i have not been to negative, but its just to help you out.

Edited 30 November, 201015 yr by amity498

It never makes financial sense to get a loan on a fast depreciating asset. I bought my vRS on personal contract hire. £1100 down and £295 a month for 3 years. I'll more than likely hand it back after then and get a new one. No fuss, everything covered by warranty and no problems selling it afterwards.

I would just add a caveat to all the financial wizards telling you not to buy a car on your mortgage,

it is only a bad idea if you incur penalties for paying chunks off your mortgage or if you just pay the minimum off each month so it takes you the mortgage term. If you are able to pay the same amount each month extra into your mortgage as you would for the car loan then the mortgage option is way cheaper and you own the car.

I have bought my last 4 cars this way, with a current mortgage rate of 1.5% which is lower than many investment rates, a no brainer especially on an offset product.

As mentioned above though it is a depreciating asset so if you can't afford to lose it the day you buy it, don't buy it :no:

Edited 30 November, 201015 yr by postmanpat

I just phoned them and the 5.8%APR is only for 3 years contract. Not in my budget unfortunately.

unlucky mate, still just proves there is range for a deal to be struck if your will to look about

Accepted the xbox request

It never makes financial sense to get a loan on a fast depreciating asset. I bought my vRS on personal contract hire. £1100 down and £295 a month for 3 years. I'll more than likely hand it back after then and get a new one. No fuss, everything covered by warranty and no problems selling it afterwards.

That's all well and good if you are happy with monthly payments for life, chunky deposits and want the luxury of a new car every three years.

I tend to keep a car for life, historically that has been between 10 and 15 years.

A 3 or 5 year loan means that aside from routine servicing and maintenance I have two thirds of my car's life where I'm free from monthly finance.

It never makes financial sense to get a loan on a fast depreciating asset. I bought my vRS on personal contract hire. £1100 down and £295 a month for 3 years. I'll more than likely hand it back after then and get a new one. No fuss, everything covered by warranty and no problems selling it afterwards.

As Silver says, that's just as bad for different reasons. So after the 3 years you've forked out almost £12,000 and you either sign up and get locked in for another 3 yrs or simply give the car back.

With these deals do you get the option to buy the car for a negotiable outstanding balance?

I have bought my last 4 cars this way, with a current mortgage rate of 1.5% which is lower than many investment rates, a no brainer especially on an offset product.

Out of interest, have you applied for an advance at this 1.5% rate?

I have always done personal loan from a bank for my cars, as the rate of the loan when taken stays the same till the loan has been paid off, in th current low rate climate its worth shopping round to see the best rate you can get OR if the dealers can give a comparable rate, go with them.

I agree with most people here, I personally wouldnt touch an ex hire car, due to the number of 'temporary' owners the car would have had.

Bite the bullet & pay £500 more for the car from the dealer, you will get some form of warranty with it, & you may get closer to the value for yours in PX. Trying to get things sorted on an ex hire car may come with all sorts of hurdles, at least with a dealer car, you know where to go & who to speak to.

Out of interest, have you applied for an advance at this 1.5% rate?

Did before they closed the door, and just left it in the offset account waiting for the rates to fall. Cheaper now to spend that than actual savings

Regardless of financial position taking an advance on an offset mortgage is better than any loan (other than a discounted 0%) is better than car finance, so long as you have the discipline to pay into the offset more or equal to what the repayments would be over a fixed term.