The Avtur family are in the market for a new car for Mrs Avtur.

I could cash in some shares, but am reluctant to do so because dividends are holding up very well.

So am looking at finance options. According to the news today the Bank of England has held base rate at 0.5% which looks great, so why on earth am I being quoted 6-9% apr on finance agreements???

I have massive equity in my house, I'm employed by a blue chip company and even if they make me redundent tomorrow it'll cost them a fortune, so why on earth am I looking at finance rates thet are a minimum of 5% above base rate ... no wonder the domestic economy is going down the drain ...

Any finance experts out there who can explain .... Stornoway Grey GS ... What a fine motor ... but not any more ... ... psst look at my gallery!
Company cars ... a thing of the past - May 2013.

kam100 on rrsport can help you with finance options  Former Mod/Member, with the most post & Chicken George Arch nemesis

Because it's an unsecured loan (secured on the car) and the value of the car will plummet soon as you leave the dealers.

Draw down some of the equity from your house (remortgage/secured/homeowner loan) and you'll be looking at nearer 1%.

IMO it due to the banks wanting to make more money instead of passing it on  Former Mod/Member, with the most post & Chicken George Arch nemesis

We recently funded our new tractor by using the farm account overdraft instead of HP etc much cheaper and more flexible  At work
At home

"I can't always believe facts I read on the web" - Charles Dickens

winner by default of the tractor vs caravan race

Thanks guys, given me something to think about.

We're on a fixed rate deal with mortgage which means we're paying just under 5% at the moment, I can't complain because when we fixed that was a bloody good deal, we're ahead on repayment but if we draw down from that we'll still be paying nearly 5%, but maybe a secured loan would be the way to go, will have to check.

I've posted elsewhere my cynical thoughts about the scrappage allowance, but we've actually got a very good offer on a new Hyundai i10, this is what we're looking to fund.

Cheers Stornoway Grey GS ... What a fine motor ... but not any more ... ... psst look at my gallery!
Company cars ... a thing of the past - May 2013.

but we've actually got a very good offer on a new Hyundai i10, this is what we're looking to fund.

At least it is a better choice than a Volvo  2007 Freelander 2 HSE TD4 Manual with Premium Pack & Moonroof.
Stornoway Grey with Ebony Black Pleather, Clear Indicators, Body Side Mouldings etc.

Base rate has nothing to do with the rate your bank borrows money to lend to you, LIBOR is more indicative which is around 1.4% so yes banks have increased their margins which tbh you would expect them to be doing at a time like now. As mentioned before Kam100 is very well regarded on all Martin's forums. D4 HSE Lux for me
FL2 HSE Zermatt & Alpacca for the wife now gone
Skoda Yeti L&K for the wife.

AndyC wrote:

but we've actually got a very good offer on a new Hyundai i10, this is what we're looking to fund.

At least it is a better choice than a Volvo

Sorry to disappoint but this is in addition to the Volvo ... order for V70 will be confirmed next week  Stornoway Grey GS ... What a fine motor ... but not any more ... ... psst look at my gallery!
Company cars ... a thing of the past - May 2013.

Hey avtur, I guessed that I was just trying to wind you up a bit  2007 Freelander 2 HSE TD4 Manual with Premium Pack & Moonroof.
Stornoway Grey with Ebony Black Pleather, Clear Indicators, Body Side Mouldings etc.