Dealer Finance

[tourer]

I wonder if someone could help me please.

I would like to purchase a car from a Toyota dealer. I do not really want to buy brand new as i would rather someone else bite the depretiation costs.

I would like to get finance on the car (i shall be adding a 5k deposit in cash) but my problem i fear is that I am screwed on my credit scoring due to the fact I do not usually take out any credit etc (never apply for credit cards or loans) so i have not built up a good credit history.

Is doing finance with Toyota easier than a bank? as in the success rate? I would assume that the Toyota finance would be hire purchase? As i am paying a large deposit would that help in anyway.

many thanks

[Blue84]

I chose to get dealer finance because I was 19 when I got my 1st Yaris T3 and also didnt have any credit history so the banks gave me a high APR anyway. I found it all very easy to arrange, they did it all..I gave them my bank details and read and signed the terms/conditions with my Dad as the Guarantor.

Might be worth you doing some comparison, see what Toyota offer you compared to a bank loan?

What car are you thinking of getting?

[tourer]

Hi.. thanks for the reply.

I would like to get an Avensis 2.0 D-4D Tourer.

Did you buy your car brand new Blue84??

thanks

[Blue84]

The T3 was brand new as in I was the 1st owner, but it went in Part exchange for the Yaris Blue 1.3 I got last March. Lost 2.5k in a year give or take a bit. The Blue was a pre-reg, Toyota had registered it in their name but it was just kept on the forecourt for just over a month doing virtually nothing. Had done 15 miles when I took it for a test-drive. That reduced the cost further and they transferred the finance onto the Blue too with an increase in the finance payment each month.

[Demonic Angel]

Its easier to get dealer finance because the loan is secured - any secured loan is easier to take out than an unsecured loan, such as a bank loan....

The loan is secured on the car you buy, so if you dont make payments, they repossess the car.

So its risky, but so long as you make the payments, its fine - I have Toyota finance for my car - they gave me a good deal - I could have easily gotten a bank loan but it was less hassle to get the finance, and I didnt have time to play games with the bank....

Generally speaking, they will let anyone take out Toyota Finance, because there is no trust involved - someone I know has an awful credit history, CCJ's etc etc and they got dealer finance, so no worries!

[GIDDLEPIN]

I used dealer finance once then went to the bank and found out that I could save a shed load more so I took out a loan with the bank, paid off the dealer finance and even with the charges saved a hell of a lot of money.

[tourer]

thanks folks for the answers.

So what does the dealer require from you when buyingon HP?? Payslips, bank statements etc???

thanks

[Demonic Angel]

thanks folks for the answers.

So what does the dealer require from you when buyingon HP?? Payslips, bank statements etc???

thanks

Its normally utility bills, bank statements etc etc - up to three months old - ideally the most recent ones - some may want to see payslips but I never had to show them mine.

They will also take a copy of your driving licence too, from memory.

[msherry21]

get a loan through your bank, thats what they're for! far better APR rate too, you'll get absolutely hammered with finance from a dealership.The car will end up costing you a fortune....Its madness if you ask me.

[SMW]

The dealer should do a better price on the car you are buying if you take their finance as they are making profit or commission on the finance as well. It's worth factoring this in when considering how to finance the car.

Personally I would go for an unsecured loan from a lender such as Virgin, Tesco etc. they generally do the best APR.

The dealer will either a - try to steer you towards a PCP plan or b - offer finance with a very high APR.

A favourite dealer trick is to quote 'flat rate' interest instead of APR - don't be fooled flat rate and APR are not the same thing !

[Dan H]

have you tried a loan through the post office? They give good APR's even with no credit rating.

http://www.moneysupermarket.com/loans/

[tourer]

have you tried a loan through the post office? They give good APR's even with no credit rating.

http://www.moneysupermarket.com/loans/

Hi

good link :)

I could not read on the post office website regarding not having a good credit History. Do you know that for sure?

I guess once I do some sort of finance my rating will rise i hope.. would be good to know you can walk in the bank and get accepted easily. Dont want to apply and get refused and then that search will be listed as declined on my credit history... dont want to dig a hole.

I can easily pay finance no problem.. i am in a pretty good job. Just never bothered with credit.

Just that i need this new car urgently... so looks like if HP is the easiest then that might be the route. Also i hear that negotiating the APR is possible too.. So i shall be !Removed! them down on APR.

[jaxx]

get a loan through your bank, thats what they're for! far better APR rate too, you'll get absolutely hammered with finance from a dealership.The car will end up costing you a fortune....Its madness if you ask me.

16grand for a YTS on toyota finance! thats with a 4,500k final figure!

[Avensis wagon]

Something came to mind -- it may be possible to negotiate the interest rate down with a dealer. You'll simply be asking them to make less profit on the finance, so it's no different to getting a reduction on extras. Lay your cards on the table and ask what they can do to compete with your cheapest real alternative.

[spotipus]

I WOULD TRY THE BANK FIRST

probably take all of ten minutes to get an answer

but be careful dont go applying with lots of different banks

every time you apply you are credit checked

and every credit check lowers your credit score !

i had this happen years ago with halifax

applied for a loan but the soft cow kept pressing enter on the computer

when i got my credit report it showed i had applied for six loans on the same day with the same bank

credit score decimated :ffs:

good luck paul

[Blue84]

On both occasions with my Finance I wasnt asked to show any payslips or bills - just ID as in my full driving licence. I don't know if that was because I have my Dad as Guarantor. The finance co did all their neccessary checks too.

[Demonic Angel]

On both occasions with my Finance I wasnt asked to show any payslips or bills - just ID as in my full driving licence. I don't know if that was because I have my Dad as Guarantor.

Most probably!

A guarantor is someone who guarantees you can pay - if you cant, then they have to pay for you. If you dont need a guarantor then you have to show proof of income, normally with a bank statement.