Lotus increased interest rate from 5.9% to 6.9%

Jonhklee

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For those of us who are planning to finance our Emira….. the interest rates are creeping up already…. It’s now 6.9% on the configurator

The delay has hit the wallet as predicted.
 

DerTheDer

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I wouldnt suggest using theirs. I would suggest one that is not through Lotus. Lower rates can still be found with CU's and other means. I was quoted 4.99% for 40k. I plan on putting 50k down (already have 11k down and will put 39k down at signing). Although I am fighting my demons to just invest that 50k and finance the rest, but I don't want the heavy debt burden.
 

Scruff111S

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For those of us who are planning to finance our Emira….. the interest rates are creeping up already…. It’s now 6.9% on the configurator

The delay has hit the wallet as predicted.
Interesting, as in the last Email i received from Lotus, Mr Windle said the prices quoted on the site would not increase. It seems the finance interest rate, Lotus feels, is ok to increase.
 

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That doesn't seem too unreasonable given the type of vehicle and rising interest rates. But home equity lending for those who own a home will likely be a cheaper option for those looking to finance.

Personally, I would find it difficult to finance more and invest the difference. While the markets are still depressed, 6.90% is not an easy rate of return to consistently achieve without taking quite a bit of risk.
 

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Interesting, as in the last Email i received from Lotus, Mr Windle said the prices quoted on the site would not increase. It seems the finance interest rate, Lotus feels, is ok to increase.
I very much doubt Lotus have much control over the interest rates, the finance is being provided by a third party. Matt Windle / Lotus agreed to honour the agreed purchase prices for FE deposit holders, he didn't mention anything about the finance costs, and in the current economic client every other bank, financial provider, car company etc etc are all increasing APR etc so only to be expected in my opinion. (not good obviously - but expected)
 

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Interesting, as in the last Email i received from Lotus, Mr Windle said the prices quoted on the site would not increase. It seems the finance interest rate, Lotus feels, is ok to increase.
Lotus isn’t a bank, I’m pretty sure, even in the UK, you aren’t financing with them, simply through them even if it’s through a captive finance subsidiary. The dealer/manufacturer processes the paperwork but a proper financial institution underwrites the loan and they set the rates, even if it’s a captive finance company.

It not all that different in the US except manufacturers are moving away from captive finance companies since dealers usually have arrangements with banks, finance companies and Credit Unions that beat their rates. In the US the finance division of the dealership is a separate profit center and they are, for the most part, con artists. The smart money in the us is to always arrange financing before they even walk into the dealership, know how much they can borrow and what their rate is. I always do and NEVER tell the dealer until we have an agreed to price and a signed buyers order. Then, when they ask I tell them what rate I have and give them the opportunity to beat it. 90% of the time they can’t but sometimes I end up saving half a point if they have a strong book with a bank. I imagine you could do the same in the UK but that level of adversarial deal making is foreign to most Brits.
 

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that level of adversarial deal making is foreign to most....
100% true. And for good reason, because it's exhausting and unnecessary. So many things in the US are adversarial in nature when they really have no need to be, it's a peculiar remnant of the 19th century that we just can't seem to leave behind.
 

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100% true. And for good reason, because it's exhausting and unnecessary. So many things in the US are adversarial in nature when they really have no need to be, it's a peculiar remnant of the 19th century that we just can't seem to leave behind.
Adversarial is the nature of the human race and has been right from the beginning. Things wouldn't be adversarial if people had a higher order of character, but that isn't natural, so it's something that only an individual can choose for themselves, thus it's rare and not common.
 

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100% true. And for good reason, because it's exhausting and unnecessary. So many things in the US are adversarial in nature when they really have no need to be, it's a peculiar remnant of the 19th century that we just can't seem to leave behind.
Yes, human history is replete of adversarial events for sure.
 

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Yes, human history is replete of adversarial events for sure.
We're talking about normal events in modern life here, like buying a car. It doesn't need to be that way.
 

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Adversarial is the nature of the human race and has been right from the beginning. Things wouldn't be adversarial if people had a higher order of character, but that isn't natural, so it's something that only an individual can choose for themselves, thus it's rare and not common.
Your politics are pretty well known here, and they likely stem from this fundamental difference in ideology about human nature, so we'll just politely agree to disagree. ;)
 

Climber

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Lotus isn’t a bank, I’m pretty sure, even in the UK, you aren’t financing with them, simply through them even if it’s through a captive finance subsidiary. The dealer/manufacturer processes the paperwork but a proper financial institution underwrites the loan and they set the rates, even if it’s a captive finance company.

It not all that different in the US except manufacturers are moving away from captive finance companies since dealers usually have arrangements with banks, finance companies and Credit Unions that beat their rates. In the US the finance division of the dealership is a separate profit center and they are, for the most part, con artists. The smart money in the us is to always arrange financing before they even walk into the dealership, know how much they can borrow and what their rate is. I always do and NEVER tell the dealer until we have an agreed to price and a signed buyers order. Then, when they ask I tell them what rate I have and give them the opportunity to beat it. 90% of the time they can’t but sometimes I end up saving half a point if they have a strong book with a bank. I imagine you could do the same in the UK but that level of adversarial deal making is foreign to most Brits.
Just purchased a Porsche for my wife Porsche is offering 4.5% I was able to get 3.85% prime was 4% at the time.
In the US a good rule of thumb is to barrow at or below prime. Some auto manufacturers Lincoln, Lexus, Cadillac offer 0% during sales promotions throughout the year…
Time to clean up your credit score, so you can shop your loan.
 

Eagle7

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Your politics are pretty well known here, and they likely stem from this fundamental difference in ideology about human nature, so we'll just politely agree to disagree. ;)
What is there to disagree with? Who said anything about politics? If you look back at the history of the human race, it's always been adversarial. When hasn't it been?
 

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What is there to disagree with? Who said anything about politics? If you look back at the history of the human race, it's always been adversarial. When hasn't it been?

Survivorship bias?

Everybody’s really happy and getting along great doesn’t hit the papers, nor register as a large historical event

1 tend to find the majority of my interactions are non adversarial hence my conclusion is that humans are collegiate most of the time. My sample is of course subject to selection bias 🙂
 

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I know I am a bit slow ( and probably old fashioned) but why would you pay these rates when loans are readily available from banks , Tesco etc for 3.2% up to £25k . If you need more then take out two loans, so £50k. If you need to borrow more than £50k then I would worry about financing so much , it seems a risky and expensive way to fund a car . Only safety net is that the car is likely to hold its value but what if if gets written off ? Need to make sure you are well covered by insurance
 

Mctaff

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That’s great if you want / can afford to pay 1000+ per month / pay off the whole loan, but not if you want a balloon payment at the end to reduce the monthlys to 500 per month - which is how the majority of uk car finance is done these days, and makes higher priced cars more accessible… but you take the higher rate hit.

I’d imagine most people insure their cars!!
 

Ian C

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That’s great if you want / can afford to pay 1000+ per month / pay off the whole loan, but not if you want a balloon payment at the end to reduce the monthlys to 500 per month - which is how the majority of uk car finance is done these days, and makes higher priced cars more accessible… but you take the higher rate hit.

I’d imagine most people insure their cars!!
Yes but if you don't getgap insurance or some agreed value them I have know people been left with huge balance to pay when the worst happens. Never really understood the attarcation in balloon payments . What happens at the end . You have to take out another loan or sell it . Like I said I am probably old fashioned save up first before you buy something
 

Mctaff

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Yes but if you don't getgap insurance or some agreed value them I have know people been left with huge balance to pay when the worst happens. Never really understood the attarcation in balloon payments . What happens at the end . You have to take out another loan or sell it . Like I said I am probably old fashioned save up first before you buy something

The attraction is it’s half the monthly payment, hence affordable for far more people
 

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I know I am a bit slow ( and probably old fashioned) but why would you pay these rates when loans are readily available from banks , Tesco etc for 3.2% up to £25k . If you need more then take out two loans, so £50k. If you need to borrow more than £50k then I would worry about financing so much , it seems a risky and expensive way to fund a car . Only safety net is that the car is likely to hold its value but what if if gets written off ? Need to make sure you are well covered by insurance
Well I must be even more old fashioned and probably in a tiny minority these days :) My attitude to buying cars has always been that if I can't buy it outright for cash, with a good cash buffer over, then I can't afford it. If that meant I'd be driving a 10 year old hot hatch rather than an £80k Emira, then so be it. Expensive sports cars are nice obviously, but with the right mindset you can have a hell of a lot of fun in a cheap car without any finance costs to worry about.
 
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