Hi
I'm buying a car on a balanced payments Hire Purchase plan. I've been told the interest rate is Base rate plus 2.5 %.
Is this fair ?
Thanks
Rob
Buying a car
Dec 19, 2003
4 Replies
Depends which base rate?
They might be quoting a flat rate of interest. Ask what the APR is, that should be a better indicator.
If it is BoE base rate of 3.75% it would make the flat rate 6.25% and the APR about 12%. Northern Rock have a typical rate of 6% APR and Tesco about
6.4%Things could be much worse. Some lenders charge interest rates well into double figures.
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Haggle for 0% interest if buying from a main dealer - many are now offering
0% deals.
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