MK5 Golf GTI
General => Random Chat => Topic started by: George on April 15, 2014, 10:52:55 am
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Hi all,
I'm helping a friend get finance to buy a VW Polo. They've been offered an interest rate of 5.88% APR which I didn't think sounded too bad, is this about the standard rate?
The car is for sale at a private dealer, but I'm not sure who the finance company is
Thanks
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It's not 'that' bad a rate for car finance imo , yeah you could get a personal loan for 4.9% but that would depend on circumstances and amount borrowed so I'd be happy with that rate from a smaller dealer :happy2:
More importantly I'd double check that the 5.88% offered is definitely the APR rate and not flat rate, some dealers when asked what the % interest rate is have been known to quote flat rate which is a lot different in real percentage terms to APR, Seat main dealer did exactly that to my cousin a few weeks back so definitely check on that point...
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Thanks Beddie :happy2:
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It's not 'that' bad a rate for car finance imo , yeah you could get a personal loan for 4.9% but that would depend on circumstances and amount borrowed so I'd be happy with that rate from a smaller dealer :happy2:
More importantly I'd double check that the 5.88% offered is definitely the APR rate and not flat rate, some dealers when asked what the % interest rate is have been known to quote flat rate which is a lot different in real percentage terms to APR, Seat main dealer did exactly that to my cousin a few weeks back so definitely check on that point...
What beddie says.... Flat rate is usually half of an APR. So if it's 5.88 flat it's essentially 12% APR. Has he been quoted a payment? I can tell by that which it is if you know.
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Don't forget to negotiate on the rate they do have room for manoeuvre or get the admin fee paid. Many buyers fail to ask as it's not common knowledge.