It's the 145 unfortunately. Cheers for the try though!
I will have a look at both Cahoot and Egg cheers.
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Id keep the Alfa for when the Fiat is off the road ;)
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Id keep the Alfa for when the Fiat is off the road ;)
Ho ho ho ;)
And what do I drive when the Alfa is broken, as they apparently invariably are?
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Serious answer: what would it cost
a. to borrow the whole amount, less sticking the cash price from the car in an ISA for the length of the loan (assuming you haven't borrowed already)?
b. find a personal loan that doesn't charge repayment penalties and then pay back and reborrow? uk.biz.yahoo.com/loan is ideal for that.
c. If the loan is for a threshhold figure (e.g. £5k) and the car's value is relatively low (sub £1k) you may actually pay less interest by borrowing more.
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OK, I've now pretty much gone with the Egg flexible loan option. I'm in a situation though where I can back out if I either change my mind or don't get the car, since I haven't yet signed anything. I can pay off lump sums at any time with no penalty, and interest is calculated daily, so every time I do there's a benefit.
The one issue I do have though is that I've been manoevred into getting the sickness insurance, which I didn't really want.
Bit complicated, but went something like this:
1. I say I don't want any insurance, woman checks what other insurance of this type I already have
2. Puts me on hold for a while
3. Says is happy for me not to have unemployment insurance, but she thinks I should have sickness.
4. I say - are you suggesting this, or am I in a situation where I will only be accepted for the loan if I agree to the insurance?
5. She says, no, it's not mandatory at all.
6. I say Ok then, I don't want it, I don't feel it is necessary.
7. She goes through all the spiel about Egg feeling that I should.
I can't really work out what was happening. it was either
a) Egg were saying without insurance no loan
b) she wasn't clever enough to understand what I was asking when I asked if it was mandatory
c) she was clever enough to appear to daft to work it out.
Anyway, I've said I will accept that deal, they're sending the papers through, I'll read through them again and decide whether to accept or ring and query. As I understand it they can't forece these insurnace deals on me, but on the other hand they could just turn round anbd say 'well then you ain't getting a loan'
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I'd be wary of taking any insurance from a lender without shopping around, as it is often overpriced. You may well find that you already have some form of sickness cover provided by your employer - always worth checking. Regardless of this, if you don't want it don't take it - don't be pressured into it. They probably make commission on every insurance polciy sold...
Peter
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I'm pretty sure the insurance won't be mandatory. However, on 14 Jan general insurance, including credit cover, became regulated by the FSA so the operator will have had a new script to go through concerning your "demands and needs". If you do decide to take it out they have to have gone through the correct sales process. Needless to say the UK has implemented the EU Insurance Mediation Directive far beyond what anyone else in Europe has done. Some haven't even bothered yet.
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As soon as you get accepted for the loan cancel the insurance :-) If they quibble say one of the conditions in it means you could never claim so forcing you to take it would be mis-selling.... that should shut them up :-)
A credit expert may be along in a min to say whether refusing a loan because you don't take an add on product is legal or not.
teabelly
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I have a very low opinion of the financial services industries and have as little to do with them as possible (pay cash for cars). The whole disgraceful endowment and pensions rip off should warn people to keep clear. I would not take any kind of add-on insurance policy - I bet its very difficult to make a successful claim - and I would have thought it very dodgy for the company to tie the loan into an insurance product.
If they try to force you to buy this policy then cancel the application and go elsewhere.
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Thanks guys, your posts pretty much mirror my own opinion of this matter, but reached a bit of an impasse with the woman in question. I will be perusing the documents they send very carefully, then probably ringing back and arranging to remove the insurance, whether that involves scoring through, or them sending new docs.
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Ah, so you need a loan, but are having trouble in raising one.
That should tell you that you cannot actually afford a new car.
Leave borrowing money to buy cars for idiots, & stick with the car you currently have. [/miserable old idiot mode]
If you're serious though, I'd look at an overdraft. Once you get a cash advance on a credit card you'll have paid 1.5% for it, so might as well not bother with the faff & just pay a bit of OD interest. 1.5% for a loan that's 2 months long is 9% pa (near enough). I'm sure you can get a cheaper OD than that if you've got a reasonable credit risk. If you haven't, see above! And if you sell the car quickly, you'll barely have borrowed anything for any time at all.
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Ah, so you need a loan, but are having trouble in raising one. That should tell you that you cannot actually afford a new car.
Were you correct about the first bit, I would certainly agree with the second.
The problem isn't though that I'm having trouble raising one, more that I want to ensure I get the correct one.
My own bankl were willing to lend me far more than I need without so much as a credit check, but their loan doesn't have the flexibility (nor the interest rate) that I desire.
I am very tempted by the overdraft route, but I'd rather the large risk paying a little extra by getting it all as loan, than the possibly small risk of paying a LOT extra if I go the OD route and have trouble selling, if you see what I mean.
Anyway, there is a weeks delay in seeing the car in question, as the seller is out of the country, this gives me the time to sort out the loan properly, and time to check out a few other cars as a comparison point.
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It was TIC! Ish, anyway. I still think that if you need to borrow money to buy a new car, you shouldn't.
What exactly is wrong with your current car? (Don't get me wrong, I'm delighted for you to borrow money from the bank to increase the value of my pension fund, but...)
GBP200 will buy you a perfectly decent VW Polo from eBay, with 12 months MOT and one recent careful owner. It'll even (just about) buy you from eBay a pre-facelift Audi 100 with 12 months MOT.
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Hmm.
A VW Polo or an Audi 100. Not exactly top of my wish list.
There is nothing wrong with my current car, in fact I love my current car, but there's nothing wrong with getting one that bit better. I've been wanting a Coupe for a long time, and now I'm in a position to get one, and a very nice example has come along.
I love Dairy Milk, but I'd happily trade it in for some Galaxy ;)
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Refusing a loan because you don't take the insurance product is not only illegal, but could be damaging to the company from a reputational view.
I'm sure Egg wouldn't intentionally do this, it's more likely to be the sales pitch that would create the impression it may have a bearing on the final decision. Credit companies are very good at not quite crossing the line, but being pretty darn close. Not the one I work for, of course. They're straight down the line....
DB
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The agent you spoke to is on a bonus to sell insurance with loans. Simple as that.
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Yep. The question now is how easy it'll be the change the agreement before signing.
Could just be a case of amending the forms they send?
But probably will have to spend some more time on the phone.
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www.moneysavingexpert.com click on Forums - loans & debts - ask there.
It's a FREE site, from Martin Lewis, the money guy thats on TV & radio all the time.
& well worth ALL backroomers checking in there, too - lots n lots hints n tips on how to save £$£$.
Whenever a motoring Q comes up, I always point them here!!
VB
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