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Private financing come through - what to do with it whilst waiting for car

Discussion in 'The UK and Ireland' started by Brunel, Feb 17, 2015.

  1. Brunel

    Brunel Member

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    Location:
    Bristol, UK
    So it looks like the cash to help pay for the car will be sat in my bank on Monday morning, but my 85D will not be ready until June according to My Tesla, but probably August as per the order page when I confirmed.

    I had thought about getting an ex-demo and trading back in, but I do high mileage and Tesla claim to depreciate trade-ins at 2% pcm and 45p/mile, which would not make financial sense if I have it until August. I could rely on selling privately, but assuming buying ex-demo from Tesla will be at a premium this could be risky approach. They sent me a list of some ex-demo P85s and there were a few between £60-£70k with minimal mileage on (it is tempting to drive a P85 temporarily since I chickened out on my order...mainly due to range concerns for my 210 mile daily commute, but the new torque sleep seems to be working makes it more workable, but also the extra £15k+ was too much of a stretch with dropping some options).

    I have no ISAs at the moment (cashed in when interest rates went low), but I could open a couple for my wife and I and keep the funds generating some tax free interest for 6 months. Plus the cash ISA rates will be higher than the 1.84% loan financing - not sure if ISAs will pay interim interest or just annual though. Or open a couple of Santander 123 accounts (not tax free, but I think the interest is higher).

    :confused:
     
  2. aarontayto

    aarontayto Member

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    How on earth did you manage 1.84% on a loan?
     
  3. Brunel

    Brunel Member

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    Location:
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    Ha ha - not Wonga.

    I was looking at being mortgage free in a couple of years and then saw the Tesla...so released equity in bricks and mortar. With no solicitor fees nor application fees it made sense to remortgage the remaining amount (and save interest on what I have been paying) and get 5 year mortgage. There are some very low mortgage rates out there (if you have equity) and with UK heading for deflation the Bank of England will probably hold off increasing their interest rate for longer than anticipated.
     
  4. aarontayto

    aarontayto Member

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    Ah there was me hoping to get a business loan at 1.84% rather than the 6% Tesla HP!
     
  5. Rluner

    Rluner Member

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    Location:
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    May I ask you what scale of fee you paid for this 1.84% five year remortgage and who it was with?

    Btw I would use multiple Santander accounts to maximise your return until you require the money. Safe, really good return, and easily accessible.
     
  6. Brunel

    Brunel Member

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    Location:
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    #6 Brunel, Feb 20, 2015
    Last edited: Feb 20, 2015
    There were quite a few mortgage providers at or below 2% if the LTV is 60% or less (I am so glad I had been obsessively overpaying the mortgage the past 10 years and being a stingy sod elsewhere in life).

    Most mortgage providers had £1000 application fees, but Nationwide as an example have no application fees, provide free conveyancing solicitor service and free valuation. Those that charge fees have rates around or below 1.5%, but you need to extrapolate over the term to do the cost/benefit of course.

    Agree with you on the bank stuff - Santander account kicking in next week. If I get a second I need to make sure I have some direct debits coming out of it.
     

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