Loan terms

Finance Admin · #1 (**permalink**) 05-12-2006, 07:42 AM

I mentioned before that I took out a loan for a car last year.

The first thing I determined is what my budget would be - I was primarily looking to pay back about £300/month over 2 years, and went car shopping.

When I finally decided on a car to buy, I found I needed to up my budget, which basically meant rising the monthly payments a bit, and extending repayments over another year.

In the end I bought a VW Touran for £17k - paid around £5k in cash, and got a loan for £12k, to be paid over 3 years @ around £360/month, so that worked out fine.

What was good to see was HSBC normally offered a rate of around 85, but without any haggling, they offered me a rate of around 5.5%, which I thought kind of cool. Means I could probably have haggled for something lower, but I was just happy to get everything moved forward smoothly.

Janine · #2 (**permalink**) 05-14-2006, 10:59 AM

I wish I'd known!! I always used to shop thinking that the rate they offered was a final figure! I'm not planning to take out any more loans any time soon (thank god!) but if I ever need to then at least I know I can try and negotiate!

ninikins · #3 (**permalink**) 05-21-2006, 08:45 PM

Please do and remember that banks need you to make money off and to sell their services and money too so dont feel too intimidated.

Benji · #4 (**permalink**) 05-29-2006, 06:17 PM

ninikins,

good advice, you shop for a car to get the best rates, you can do so with your financing options too. You don;t have to settle for their inhouse financing service, check banks and credit unions - even online sources to get the best deal after you've made your best deal on a vehicle.

riskey58 · #5 (**permalink**) 01-27-2007, 06:22 PM

When I have gone for a loan. I just go in and tell them how much I want, and let them take care of it. I never new that you could negotiate. I would do a lot better If I had know. So call me dumb. I guess it is live and learn.

kelkat · #6 (**permalink**) 01-27-2007, 10:18 PM

Also keep in mind that the better your credit score the more negotiating power you have. The best way to get a good deal on future loans is to handle your finances right at the present.

taiarain · #7 (**permalink**) 01-29-2007, 05:34 PM

Yep, you absolutely can negotiate and kelkat is right on here, the higher your credit score, the more power you have.

Exodus · #8 (**permalink**) 02-02-2007, 10:30 AM

Credit unions are the way to go. I find them to be more personal to deal with also. Sometimes they can be strict though.

unique · #9 (**permalink**) 02-06-2007, 06:37 AM

If I can get a considerable discount with loan payments then I might consider a loan the next time I buy a car. My first two cars were paid in cash so what I got was a cash discount. I'll just compare which one is better the next time I buy.

riskey58 · #10 (**permalink**) 02-06-2007, 03:47 PM

We have dealt with are credit union before. And I agree they are a lot more strict then other places. But they also seem to treat you more like a person then other places do.

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