Advice On Finance

[lyndz]

hi there, i have just registered for this web site with advice from someone i know davy cfc1, was just wanting some advice regarding finance on what would be the best way to finance a car, i am really interested and wanting a yaris 2-3 year old, poss 1.3 engine. as i have just passed my driving test today for the second time trying thank goodness, lol, looking forward to hearing what advice any of u will have.

thanks lyndz

[cfc1]

Welcome to TOC

[Demonic Angel]

Congrats on passing your test! :)

Well I've tried both Toyota Finance and a personal loan.... Toyota Finance worked out cheaper but they are a lot stricter, because you dont actually own the car til you pay your final monthly payment... but it was a lot less hassle to get the Toyota Finance!

I suppose it depends on whats more important to you, flexibility to do what you want with the car whenever, or lower monthly payments....

Any friend of Davys.....

[lyndz]

Congrats on passing your test! :)

Well I've tried both Toyota Finance and a personal loan.... Toyota Finance worked out cheaper but they are a lot stricter, because you dont actually own the car til you pay your final monthly payment... but it was a lot less hassle to get the Toyota Finance!

I suppose it depends on whats more important to you, flexibility to do what you want with the car whenever, or lower monthly payments....

Any friend of Davys.....

thanks demonic angel, thanks very much for that yeah i am still on a high from it, i did nt think that good a thing ever happened to me lol, so having few drinks the now to celebrate lol, is hire purchase better, was thinking about that, what u recommend a brand new one or used about 2 - 3 years old car?

lyndz

[Starensis]

Congrats on passing your test & choosing one of the best small cars on the road.

Word of warning..........be careful with Toyota finance!! Although they are very good, they often quote flat rate %. If they quote you 3.2% flat rate, the APR will be around double ( 6.2% ish )

Loan companies quote APR%, so ask Toyota to match the best loan APR%. If they want your business they will!! most loan companies are offering 5.8% APR at the moment.

I always take a print out from the Northern Rock site to Toyota so you can compare monthly repayments.

[lyndz]

Congrats on passing your test & choosing one of the best small cars on the road.

Word of warning..........be careful with Toyota finance!! Although they are very good, they often quote flat rate %. If they quote you 3.2% flat rate, the APR will be around double ( 6.2% ish )

Loan companies quote APR%, so ask Toyota to match the best loan APR%. If they want your business they will!! most loan companies are offering 5.8% APR at the moment.

I always take a print out from the Northern Rock site to Toyota so you can compare monthly repayments.

thanks very much starensis, as i have been looking around to and i also noticed that northern rock were a lower apr and was wondering just where i start, would i be better with hire purchase do u think? aye cant believed ive passed like with only 5 minors,

lyndz

[cfc1]

thanks very much starensis, as i have been looking around to and i also noticed that northern rock were a lower apr and was wondering just where i start, would i be better with hire purchase do u think? aye cant believed ive passed like with only 5 minors,

lyndz

aye.. anithir yin tae teach ye's sum scottish tung

an av jist notist wuv goat maer e theez hings....

[mrtitty]

i would recommend a non toyota loan, just because you acctaully own the car. I got a better deal with AA than Toyota could offer and had about 2 months till i had to make a payment and no 'desposit' or baloon payment which helped loads. You should find adding a parent and doing a joint application will make the rate lower, as you are less of a risk to them.

[DaveSR]

Yep .... I wouldn't recommend the toyota loan either, no matter how good a deal it sounds. It best to get a personal loan from any of the big banks as you can get a lower APR than what Mr T would give you.

He will try and make the figure sound all nice ..... but they can't match/beat the banks !

[Demonic Angel]

i would recommend a non toyota loan, just because you acctaully own the car. I got a better deal with AA than Toyota could offer and had about 2 months till i had to make a payment and no 'desposit' or baloon payment which helped loads. You should find adding a parent and doing a joint application will make the rate lower, as you are less of a risk to them.

But to add as well, just to make it clear that not all Toyota finance needs a deposit, nor do they all include a balloon payment... my finance has neither!

But yes, the majority of finance you do have a balloon payment and/or a big deposit....

[Al J]

My Toyota loan has a better apr... 0% but then that's on a new car.

[seveer unaek]

If you know your stuff, then id recommend just searching for the best loan rate, or if you're unsure of which way to pay for your car, or what any of those ways are, then id recommend having a look at:

WhatCar?

Parkers

RAC

Autocar

These are just a few, but should give some helpful advice.

P.S. Welcome to the club!

[Blue84]

Hello, Welcome to TOC.

I've had Toyota finance on both Yarii I have owned because where I am young the banks give me a High APR anyway - no credit rating is what did it apparently and it was easier just to get finance from Toyota. I was 19 when I got my 1.0 Yaris T3. It's probably worth you doing some comparison like already mentioned. If you are older than you'll probably get a more favourable APR, if I could've got a bank loan then I would've done as the car would be officially mine in all area's instead of me being the Logbook owner but Toyota being the "official" owner underneath it all.

[jaxx]

its cheaper because of the final value payment, i found out the total value of my car was around 16 grand!

i was paying roughly 330quid a month on the finance deal over three year but that was quite an horrific 4,300 pound final value sum!

around 18 months into it, i looked into a finance settlementm which came to around 9,500 which i was quite miffed with as most of my cash wasnt going to the value of the car, but luckily i managed to pull some cash together and nailed the final sum in one, so its been legally mine and paid for over the last 18months again

if i were to have stayed on the deal the FVS would be coming round next month!

so on that id not recommend it, unless you intend to give it back after 3 years, or do the deal and get a different car and so on. if you want to own it then get a bank loan. Maybe with an extra year or two which will help keep your payments down