Best hire purchase/ loan rate for M3 please

[Joshwa201]

Hi all

just wondered if anyone has come across a cheaper finance deal for a model 3.
Black horse/ tesla for SR+ with £9,000 deposit is 4.9% APR Interest charges over 6years: £4,272

My previous car: I had a loan at less than 3% but this was for a much smaller amount (Around 15K)

wondered if anyone had found anything cheaper than Tesla / Black horse

Thank you in advance for any suggestions

Josh

 

[gangzoom]

We are about to apply for additional borrowing for a house extension, am looking at fixed interest rates as low as 1.15% over a 2 years and 1.55% over 5 years. That translates to roughly paying just £60-80 interest per month on a six figure loan over the loan period.

Haven't looked at car loan rates for a while but nearly 5% rates when the base rate is near 0% seems very expensive.

 

[bhav]

We are about to apply for additional borrowing for a house extension, am looking at fixed interest rates as low as 1.15% over a 2 years and 1.55% over 5 years. That translates to roughly paying just £60-80 interest per month on a six figure loan over the loan period.

Haven't looked at car loan rates for a while but nearly 5% rates when the base rate is near 0% seems very expensive.

This is not comparable at all!!

The house is long term investment over 25 years, almost certainly an appreciating asset and almost certainly can be offloaded to someone else immediately if the lender needs to take it from you.

A car is short term, depreciating and at the mercy of short term fluctuations in demand so the finance company/bank is taking on a huge amount more risk. I'm not surprised at all that short term loan rates are 5%.

 

[Joshwa201]

I considered this as well, my issue is that i had an unsecured loan at half the interest rate of this car loan.
The car loan is secured by the car, looking at second hand M3’s they are maybe 2k cheaper than new with 8k miles on the clock.
I don’t think the industry has caught on but someone could offer a much better rate i feel.

 

[Joshwa201]

I have a friend who did this but he is mortgage free.
Its a cheap way to do it but the thought of securing a depreciating asset like a car on the house is very daunting and inadvisable as Bhav said above.

 

[gangzoom]

This is not comparable at all!!

I understand what your saying but the disparity between availability of cheap credit like on a mortgage versus rates of other borrowing is very disproportionate.

There seems to be talk of mortgage rates going down to 1% at some point, after you adjust for inflation that is the equivalent of the bank throwing money at you in exchange for nothing.

For the first time in my life am actually looking fowards to adding to the mortgage, £80/month interest on a £100,000 loan is crazy talk, and in any other setting it would almost certainly be a con, yet we have massive government backed banks like Barclays offering it up to all takers.

Someone somewhere is getting rich from all this fake money, but its 100% not the consumer paying 4.9% APR .

 

[bhav]

Someone somewhere is getting rich from all this fake money, but its 100% not the consumer paying 4.9% APR .

And rightly so! Ultimately you're being given the ability to "own" something you can't afford, so it's only right that you have to pay for the privilege. 5% doesn't seem so bad to me for the sums involved...and anyway no one is being forced to enter into a financing agreement for a £50k car