Buying a car

- R
- Rob
  
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posted
20 years ago

Fri, Dec 19, 2003 8:38 PM

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

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- D
- Doug Ramage
  
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Vote on answer
posted
20 years ago

Fri, Dec 19, 2003 8:56 PM

Depends which base rate?

- P
- Phil Deane
  
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posted
20 years ago

Sat, Dec 20, 2003 1:36 PM

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%

- D
- DP
  
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posted
20 years ago

Sun, Dec 21, 2003 4:08 AM

Things could be much worse. Some lenders charge interest rates well into double figures.

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- J
- John Smith
  
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posted
20 years ago

Mon, Jan 5, 2004 1:04 AM

Haggle for 0% interest if buying from a main dealer - many are now offering

0% deals.

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