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Sainsbury Personal Loans.


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Hi all. I have put a deposit down on a nearly new Skoda Octavia SE. I was hoping to pay off the balance with a personal loan from Sainsburys Bank at 2.9%. It does state that that that APR is subject to status.

 

Now I earn a regular good wage with a train operator, lived at my current address for over a decade with my partner and have shaved a decent amount towards my new car.

 

So they email to state that in principal that the loan is approved and will post agreement. So agreement arrives and the APR is 6.7%! Anyone else had this kind of result?

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I got this a couple of times,  basically because I was using my parents address (it's pretty difficult to get a a credit rating travelling the 7 Seas on a Pussers Grey!),  they live in a six in a block tenement (flat). Unfortunately most credit assessors (Experian and  Equifax) in their wisdom count this as one property. So if any of the other tenants have a bad credit rating,  it affects yours too. 

IIRC,  I contacted the lender on one occasion and got them to reduce the rate. 

The other times I just went to another lender. However,  this can also affect your credit rating as they see you have made multiple applications for credit. 

I would email or write to Sainsbury (remember; no paper,  no trail!) and ask why the disparity with the rate advertised and offered. 

I may be talking out of my hoop with this bit,  but I vaguely remember that lenders only have to offer/supply the advertised rate to a certain percentage of customers. So they may have simply filled their quota! 

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Had similar for a loan to finish an extension. The difference was only slight but this was a few years ago when rates were higher. In the end I went with it as I needed the money and didn't want to have to apply through someone else and have more credit checks. This is a con in my eyes. It should tell you when you do the application online what rate you will pay!

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On ‎17‎/‎02‎/‎2017 at 10:54, camelspyyder said:

I see 6.7% is their advertised rate for loans over £25000.  Have you ticked all the options?

 

It could just be an admin error though since all their sub £25000 rates are in the 2.9 to 3.5% range.

I rung them up and asked why the APR was so different and he said that was the rate was for my application and if I got a better quote that would better it by 0.01%. So basically take it or leave it.

 

I have since applied to my own bank. They know my in and outgoings better than anyone!

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Just now, camelspyyder said:

dealer finance vs loan?

 

as a loan customer you go to the dealer armed with cash...

 

and get a discount.

 

 

But overall, including loan rate, loss of any deals for finance, do you still come out on top? 

 

These days the loan route actually makes things more expensive. Especially if you trade in regularly. If you're keeping under  6 years, dealer finance is currently the cheapest option. 

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I take it you mean PCP? I was referring to HP.  

 

Up till now I've always liked to own the car that I've spent 3 years paying for.

 

However on a PCP the payments could be a lot less, so I may look at that when I retire (very soon).

 

 

 

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35 minutes ago, camelspyyder said:

I take it you mean PCP? I was referring to HP.  

 

Up till now I've always liked to own the car that I've spent 3 years paying for.

 

However on a PCP the payments could be a lot less, so I may look at that when I retire (very soon).

 

 

 

PCP is low, but also dealer HP deals are generally lower than a loan too. 

 

Remember they're struggling to sell cars, so the manufacturers are subsidising finance to shift cars. 

 

Assume that you like to "own" because you keep them for a long time? 

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3 minutes ago, camelspyyder said:

Just old fashioned I guess; SWMBO more than me.

 

Added to which we've really never made enough to have 2 PCP running at once, so we have each a new car about every 6 years, but only pay for one at a time.

Stay old fashioned. It's good for you.

Enjoy the new car too.

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The advertised rate needs to have been given to 2/3 of applicants before they can describe it as 'typical'.

 

The money saving website has access to some 'soft' loan applications that you can do without them coming up on your credit score.

You can get your credit score for free at Noddle.co.uk which again might tell you your likelihood of getting the advertised rate.

 

I had a Sainsburys personal load for a car previously. I got the rate and didn't have any issues with them over the duration of the loan.

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Someone commenting in yesterday's Financial Times reckoned that PCP deals are great for the dealer, not so good for the buyer. He reckoned that the APR at the end of the PCP term will be much higher than a decent personal bank loan. I guess that is just his opinion, but if you want to look it is at the bottom of p.6 in the FT "Money" supplement for Saturday 18 Feb 2017.

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36 minutes ago, OldTrilobite said:

Someone commenting in yesterday's Financial Times reckoned that PCP deals are great for the dealer, not so good for the buyer. He reckoned that the APR at the end of the PCP term will be much higher than a decent personal bank loan. I guess that is just his opinion, but if you want to look it is at the bottom of p.6 in the FT "Money" supplement for Saturday 18 Feb 2017.

All depends what your aim is at the end of the deal. 

 

If to get another car and trade it in, dealer finance will save you up to half of what a loan would. The APR is lower, and typically they have deals only available for finance customers (ie vag brands offering free services) 

 

Unless you're looking at keeping over 6 years, buying a car outright is ludicrous. 

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On 17/02/2017 at 01:08, Fin69 said:

... travelling the 7 Seas on a Pussers Grey! ...

 

That's a new one for me, is it the current phrase?  I remember the old song "The Conway's the pride of the grey funnel fleet" and the late Cyril Tawney's collection published under "Grey Funnel Lines".

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Following on from all your comments, I am purchasing an pre reg Octavia SE with 11 miles on the clock. It was nearly 6 grand off list so it is unlikely that I would get any further discount so didn't try. I was happy with the price. I got a personal loan from my own bank at the advertised rate of 3.9%. Sainsbury's offered 2.9% but agreement came back at 6.3! Sainsbury's did say that they'd better any loan by 0.01% but why should I take that up when they couldn't do that in the first place? After 3 years this Octavia will be paid off and I plan to keep it a long time. I have tried PCP and didn't like it. My cars trade in after 2 years was a grand less than the settlement figure so I voluntarily terminated the PCP and will be walking away.

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