Finance Finance and Credit! - Page 2

NH Dan · 3rd July 2008, 01:18

Quote:

Originally Posted by karobonas

Well. I am 23 (24 at time of purchase). I often get looked down on for my age when looking in dealerships at high performance cars as any young person would probably. As I say I can afford to pay the montly payments within reason but was concerned that if I apply for finance, the fact that it does leave a footprint on my credit file, if I get refused I will have to wait another 6 months before I can apply again.

Vicious circle really as I really want the car yesterday! but don't want to ruin my chances for getting it in the future if I do get refused if you get what I mean!

p.s. I've cut all my cards up and don't have any anymore... those things are the reason I am suffering today!! lol

NH Dan, Do you have any idea of the questions asked with the finance applications, i.e. what they take into consideration? Annual Salary, Living with parents etc....

pm'd you a reply....

sorry, work work pc's are offline so no Civinfo for a few days !!!

geordielabrador · 3rd July 2008, 12:12

I know it is the begining of the month now so you're at a disadvantage. If you can resist hold out to the end of the month when the sales figures are closing in on the salesmen. You'll be able to get a better deal.

Don't accept 9.9% APR or anything like it. Although my credit rating is good, they did not even go into my credit scoring before offering me 4.2%APR. Even if it means telling them you want to look elsewhere for better credit then do it.

That car sounds like a good deal you're getting and if they let it sit around in the car park it is only going to depreciate. They may aswell sell it that month with a better APR than lose further depriecation.

Enjoy the buy but don't take any of the sales nonesense like not being able to test drive unless you commit, what a load of *****e.

let us know how you get on.

NH Dan · 3rd July 2008, 12:19

Quote:

Originally Posted by geordielabrador

I know it is the begining of the month now so you're at a disadvantage. If you can resist hold out to the end of the month when the sales figures are closing in on the salesmen. You'll be able to get a better deal. - makes no difference to whether you'll be accepted on finance or not.

Don't accept 9.9% APR or anything like it. Although my credit rating is good, they did not even go into my credit scoring before offering me 4.2%APR. Even if it means telling them you want to look elsewhere for better credit then do it. - Not via Honda Finance you cant., maybe 'other' finance companies

That car sounds like a good deal you're getting and if they let it sit around in the car park it is only going to depreciate. They may aswell sell it that month with a better APR than lose further depriecation. - half a dozen of one and 6 of the other there!!

Enjoy the buy but don't take any of the sales nonesense like not being able to test drive unless you commit, what a load of *****e. - ABSOLUTELY correct - that is just a crock.

let us know how you get on.

....

geordielabrador · 3rd July 2008, 12:35

Dan, i know what u mean, it is 6 of 1, half a dozen of the other but not when it is the end of the month and the Sales guys are not meeting targets, that is when deals "have" to be struck and it just switches that little bit of power over to the buyer.

It is all about whether you feel like the deal is a good one or not. Its sometimes best not to hear what others have done and what they got "thrown in" as it can make you think you did not get a good deal yourself. The price of this motor with so little miles and Rages is a good one i think.

NH Dan · 3rd July 2008, 12:38

tbh, i fight as hard at the start of the month as i do at the end, irrespective of targets. I'm here to sell cars no matter what day of the week it is!!!

karobonas · 3rd July 2008, 13:04

Like every good salesman! I appreciate your info though geordie. A lot of people I have asked have said its best to haggle down the APR. What are you views on this Dan.... as a salesman, you know how much you can give away and what not. I mean is the deal worth any less to you commssion wise if the APR is set lower?

NH Dan · 3rd July 2008, 13:22

ok, seeing as you are buying used then the current Honda deals dont apply, so you will be looking at a more open picture.

All finance companies have limits, base rates etc which we can obviously not go below, its really down to the dealership, the salesman, the business manager (if applicable) as to what can be done.

At the mo, i'm getting letters and emails daily regarding changes in rates and fees from the finance companies so the rates are all over the shop.

With regards to profit etc in deals, again it all depends on how the dealership structure the payment side of things.

karobonas · 3rd July 2008, 13:38

Would you recommend me buying a brand new car? I am slight dubious on the price as the additions that are included in the used car amount to just under 4k yet its being sold for 16,995 with only 200 miles on the clock....

If I do get a new car what deals should I expect or do they alter from time to time. I was lookin a while back on the official website a deal at 7.9% but only ran out to 28th of June yet people, after haggling can get the apr down lower than that?

Also do I need a deposit at all?

NH Dan · 3rd July 2008, 14:17

Quote:

Originally Posted by karobonas

Would you recommend me buying a brand new car? I am slight dubious on the price as the additions that are included in the used car amount to just under 4k yet its being sold for 16,995 with only 200 miles on the clock....

If I do get a new car what deals should I expect or do they alter from time to time. I was lookin a while back on the official website a deal at 7.9% but only ran out to 28th of June yet people, after haggling can get the apr down lower than that?

Also do I need a deposit at all?

1) the car you have been offered sounds like a good spec/deal.

2) what finance deal you take is purely down to what suits you best. I sold a new jazz earlier in the week when the customer was looking for a used car, purely because although the cars were some £1,800 different in price, the payments and total amount payable was less for the new car due to the subsidised rates being offered for new cars.

3) offers on new cars change pretty much every 3 months or quarter as its known. The july - sept deal now offers a typical apr or 6.9 % on the civic. You cannot change the rate offered by Honda on the new car as its is a subsidised rate anyway so cannot be lowered. People are not haggling to get better rates on new car deals if its part of the current marketing plan.

yes, you will need a deposit. think of it from a lenders point of view. You are looking at buying, say, £20k of car. if you cannot afford a deposit, the lender may look at the case and say , well if they cant afford a deposit, how can they afford the monthly payments???

karobonas · 3rd July 2008, 14:59

Yea, fair point... I was going to put down 1500 + part ex of my old car which is about 500 so 2k which is about 10% on a new one though the website is saying at least 3.5k on the 6.9% deal... is that set in stone???.

Mr JP · 3rd July 2008, 15:01

I agree with NH Dan, it could work both ways too. If a target has been missed in the previous month, then managers will demand a good start to the following one so it's very hard to say, unless of course your buying at the end of the financial year or end of current registration period where I have found better deals can be had.

In terms of finance, the "4.2%APR" quoted sounds like the flat rate, as to get that on APR at this time would be unheard of with Honda. The figure Honda quoted 1 year ago to me was 8.9% on £15000 borrowed, but like I say after nearly walking they sourced the loan through Capital Bank at 7.9%APR.

There are also advantages to HP as opposed to a straight loan, although I can't remember all of them, but it's got something to do with allowances on interest rebaits etc I think.

The price you have seen Karobonas on the R-GT sounds about right, you have to remember you will be the second owner, plus it has been used for demonstration purposes so should be cheaper than pre-regisered anyway. Plus the "£4K" worth of extras doesn't cost the dealer that remember!

Some very good deals can be had on new ones so look hard!

If it were me I would go with a PCP (lease agreement) if I had my time again. This way your monthly repayments will be lower as you defer the bulk of the loan to the end and either pay it or give the car back and get a new one!

Very attractive deals can be had doing it this way and someone on here on another post wrote about it. If you factor in depriciation, deposit, and interest rates this would prove to be more cost effective in the long run.

karobonas · 3rd July 2008, 15:07

Yea I was thinking of doing the PCP finance as I plan to keep the car for a least 5 years.

I think I am going to have to a bit of shoping around..... Thanks again JP

Mr JP · 3rd July 2008, 15:14

Start online mate, i'm sure I have seen R-GT's for £250ish per month with £1000ish deposit!

Just do a search for (type-r gt lease)

Good luck in your quest, keep us posted

NH Dan · 3rd July 2008, 17:07

current sample quote;;

Type R GT otr cost £19,000

Deposit £3,497.59

36 payments of £255

GFV (balloon payment) £8,853.11

based on 10,000 miles per annum, typical APR 6.9%

karobonas · 3rd July 2008, 17:26

Do I have to keep to that deposite amount? can I put in say 2.5k? I understand my monthly payments would increase but does the same deal apply?

NH Dan · 3rd July 2008, 17:48

minimum deposit is 10% - £1,900 in this example

Mr JP · 3rd July 2008, 22:10

That's what I should have done! aaaaaaahhhhhhhhhh!

Karobonas that sounds pretty good to me, the 10,000 miles is pretty standard with most leasing companies, and the 6.9% is good too.

Although I'm sure I have seen slightly cheaper quotes online.

Is that through Honda Finance NH Dan?

angie4m · 3rd July 2008, 22:19

Quote:

Originally Posted by Mr JP

Karobonas that sounds pretty good to me, the 10,000 miles is pretty standard with most leasing companies, and the 6.9% is good too.

But he is wanting to keep the car for a little while longer than three years and in three years time he may not have the Ballon payment or be able to get another loan for the ballon payment due to other things that may arise.

I'm sure he will do what is best for him. Also if you want to do something to the car like add some other extras that are not standard and not from Honda then you cannot really do this on these types of deals

karobonas · 4th July 2008, 07:35

Hi Angie,

Am I right in thinking that I can just replace the car without having to pay the baloon payment= a new car evey 3 years?? Anyway I am not planning on changing the car from stock, even though I am an Essex Boy (sterotyped for rude boy additions) I think the Civic looks pretty slick stock especially with the 19's" on it.

p.s. your car sounds nice!

Mr JP · 4th July 2008, 10:31

Karobonas that's right, you wouldn't have to find the balloon payment at all, just give the car back. But obviously you would need to find another £1900 or so for another deposit to start a new contract, but if you look after your Civic it may have that collateral left in it at the end of the 3 years anyway! (52% residual value)

In terms of extras I have not seen 1 company that doesn't allow you the full range of extras. Most of them allow you to collect the car from a dealer anyway so there is no difference. The Rage wheels won't be a problem at all.

3rd July 2008, 15:01	#31 (permalink)
Mr JP Supporter Rocketship door handle Join Date: 2nd February 2007 Location: Kent, UK Posts: 1,208 Thanks: 14 Thanked 38 Times in 38 Posts iTrader: (2)	I agree with NH Dan, it could work both ways too. If a target has been missed in the previous month, then managers will demand a good start to the following one so it's very hard to say, unless of course your buying at the end of the financial year or end of current registration period where I have found better deals can be had. In terms of finance, the "4.2%APR" quoted sounds like the flat rate, as to get that on APR at this time would be unheard of with Honda. The figure Honda quoted 1 year ago to me was 8.9% on £15000 borrowed, but like I say after nearly walking they sourced the loan through Capital Bank at 7.9%APR. There are also advantages to HP as opposed to a straight loan, although I can't remember all of them, but it's got something to do with allowances on interest rebaits etc I think. The price you have seen Karobonas on the R-GT sounds about right, you have to remember you will be the second owner, plus it has been used for demonstration purposes so should be cheaper than pre-regisered anyway. Plus the "£4K" worth of extras doesn't cost the dealer that remember! Some very good deals can be had on new ones so look hard! If it were me I would go with a PCP (lease agreement) if I had my time again. This way your monthly repayments will be lower as you defer the bulk of the loan to the end and either pay it or give the car back and get a new one! Very attractive deals can be had doing it this way and someone on here on another post wrote about it. If you factor in depriciation, deposit, and interest rates this would prove to be more cost effective in the long run. Last edited by Mr JP; 3rd July 2008 at 15:05.

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This thread is about: Finance and Credit!, it's in Buying, Dealers and Servicing at the Honda Civic forum Civinfo; Originally Posted by karobonas Well. I am 23 (24 at time of purchase). I often get looked down on for my age when looking in ...

3rd July 2008, 12:12	#22 (permalink)
geordielabrador Valve Cap Join Date: 25th April 2008 Location: Newcastle, UK Posts: 42 Thanks: 0 Thanked 2 Times in 2 Posts iTrader: (0)	I know it is the begining of the month now so you're at a disadvantage. If you can resist hold out to the end of the month when the sales figures are closing in on the salesmen. You'll be able to get a better deal. Don't accept 9.9% APR or anything like it. Although my credit rating is good, they did not even go into my credit scoring before offering me 4.2%APR. Even if it means telling them you want to look elsewhere for better credit then do it. That car sounds like a good deal you're getting and if they let it sit around in the car park it is only going to depreciate. They may aswell sell it that month with a better APR than lose further depriecation. Enjoy the buy but don't take any of the sales nonesense like not being able to test drive unless you commit, what a load of *****e. let us know how you get on.

3rd July 2008, 12:35	#24 (permalink)
geordielabrador Valve Cap Join Date: 25th April 2008 Location: Newcastle, UK Posts: 42 Thanks: 0 Thanked 2 Times in 2 Posts iTrader: (0)	Dan, i know what u mean, it is 6 of 1, half a dozen of the other but not when it is the end of the month and the Sales guys are not meeting targets, that is when deals "have" to be struck and it just switches that little bit of power over to the buyer. It is all about whether you feel like the deal is a good one or not. Its sometimes best not to hear what others have done and what they got "thrown in" as it can make you think you did not get a good deal yourself. The price of this motor with so little miles and Rages is a good one i think.

3rd July 2008, 12:38	#25 (permalink)
NH Dan Newton Honda Rocketship door handle Join Date: 31st January 2008 Location: South London,Uk Posts: 1,527 Thanks: 62 Thanked 61 Times in 54 Posts iTrader: (0)	tbh, i fight as hard at the start of the month as i do at the end, irrespective of targets. I'm here to sell cars no matter what day of the week it is!!!

3rd July 2008, 13:04	#26 (permalink)
karobonas Locking Wheelnut Join Date: 30th June 2008 Location: Essex, UK Posts: 169 Thanks: 5 Thanked 1 Time in 1 Post iTrader: (0)	Like every good salesman! I appreciate your info though geordie. A lot of people I have asked have said its best to haggle down the APR. What are you views on this Dan.... as a salesman, you know how much you can give away and what not. I mean is the deal worth any less to you commssion wise if the APR is set lower?

3rd July 2008, 13:22	#27 (permalink)
NH Dan Newton Honda Rocketship door handle Join Date: 31st January 2008 Location: South London,Uk Posts: 1,527 Thanks: 62 Thanked 61 Times in 54 Posts iTrader: (0)	ok, seeing as you are buying used then the current Honda deals dont apply, so you will be looking at a more open picture. All finance companies have limits, base rates etc which we can obviously not go below, its really down to the dealership, the salesman, the business manager (if applicable) as to what can be done. At the mo, i'm getting letters and emails daily regarding changes in rates and fees from the finance companies so the rates are all over the shop. With regards to profit etc in deals, again it all depends on how the dealership structure the payment side of things.

3rd July 2008, 13:38	#28 (permalink)
karobonas Locking Wheelnut Join Date: 30th June 2008 Location: Essex, UK Posts: 169 Thanks: 5 Thanked 1 Time in 1 Post iTrader: (0)	Would you recommend me buying a brand new car? I am slight dubious on the price as the additions that are included in the used car amount to just under 4k yet its being sold for 16,995 with only 200 miles on the clock.... If I do get a new car what deals should I expect or do they alter from time to time. I was lookin a while back on the official website a deal at 7.9% but only ran out to 28th of June yet people, after haggling can get the apr down lower than that? Also do I need a deposit at all?

3rd July 2008, 14:59	#30 (permalink)
karobonas Locking Wheelnut Join Date: 30th June 2008 Location: Essex, UK Posts: 169 Thanks: 5 Thanked 1 Time in 1 Post iTrader: (0)	Yea, fair point... I was going to put down 1500 + part ex of my old car which is about 500 so 2k which is about 10% on a new one though the website is saying at least 3.5k on the 6.9% deal... is that set in stone???.

3rd July 2008, 15:07	#32 (permalink)
karobonas Locking Wheelnut Join Date: 30th June 2008 Location: Essex, UK Posts: 169 Thanks: 5 Thanked 1 Time in 1 Post iTrader: (0)	Yea I was thinking of doing the PCP finance as I plan to keep the car for a least 5 years. I think I am going to have to a bit of shoping around..... Thanks again JP

3rd July 2008, 15:14	#33 (permalink)
Mr JP Supporter Rocketship door handle Join Date: 2nd February 2007 Location: Kent, UK Posts: 1,208 Thanks: 14 Thanked 38 Times in 38 Posts iTrader: (2)	Start online mate, i'm sure I have seen R-GT's for £250ish per month with £1000ish deposit! Just do a search for (type-r gt lease) Good luck in your quest, keep us posted

3rd July 2008, 17:07	#34 (permalink)
NH Dan Newton Honda Rocketship door handle Join Date: 31st January 2008 Location: South London,Uk Posts: 1,527 Thanks: 62 Thanked 61 Times in 54 Posts iTrader: (0)	current sample quote;; Type R GT otr cost £19,000 Deposit £3,497.59 36 payments of £255 GFV (balloon payment) £8,853.11 based on 10,000 miles per annum, typical APR 6.9%

3rd July 2008, 17:26	#35 (permalink)
karobonas Locking Wheelnut Join Date: 30th June 2008 Location: Essex, UK Posts: 169 Thanks: 5 Thanked 1 Time in 1 Post iTrader: (0)	Do I have to keep to that deposite amount? can I put in say 2.5k? I understand my monthly payments would increase but does the same deal apply?

3rd July 2008, 17:48	#36 (permalink)
NH Dan Newton Honda Rocketship door handle Join Date: 31st January 2008 Location: South London,Uk Posts: 1,527 Thanks: 62 Thanked 61 Times in 54 Posts iTrader: (0)	minimum deposit is 10% - £1,900 in this example

3rd July 2008, 22:10	#37 (permalink)
Mr JP Supporter Rocketship door handle Join Date: 2nd February 2007 Location: Kent, UK Posts: 1,208 Thanks: 14 Thanked 38 Times in 38 Posts iTrader: (2)	That's what I should have done! aaaaaaahhhhhhhhhh! Karobonas that sounds pretty good to me, the 10,000 miles is pretty standard with most leasing companies, and the 6.9% is good too. Although I'm sure I have seen slightly cheaper quotes online. Is that through Honda Finance NH Dan?

4th July 2008, 07:35	#39 (permalink)
karobonas Locking Wheelnut Join Date: 30th June 2008 Location: Essex, UK Posts: 169 Thanks: 5 Thanked 1 Time in 1 Post iTrader: (0)	Hi Angie, Am I right in thinking that I can just replace the car without having to pay the baloon payment= a new car evey 3 years?? Anyway I am not planning on changing the car from stock, even though I am an Essex Boy (sterotyped for rude boy additions) I think the Civic looks pretty slick stock especially with the 19's" on it. p.s. your car sounds nice!

4th July 2008, 10:31	#40 (permalink)
Mr JP Supporter Rocketship door handle Join Date: 2nd February 2007 Location: Kent, UK Posts: 1,208 Thanks: 14 Thanked 38 Times in 38 Posts iTrader: (2)	Karobonas that's right, you wouldn't have to find the balloon payment at all, just give the car back. But obviously you would need to find another £1900 or so for another deposit to start a new contract, but if you look after your Civic it may have that collateral left in it at the end of the 3 years anyway! (52% residual value) In terms of extras I have not seen 1 company that doesn't allow you the full range of extras. Most of them allow you to collect the car from a dealer anyway so there is no difference. The Rage wheels won't be a problem at all.