Third Party (not Lotus) Finance

[Toomanyloti]

Initially I was buying the car cash but 2 years later I have decided to finance half.
Just spoken with the finance agent Lotus have partnered with and he said (in a roundabout way) that its Lotus finance or cash?
Lotus wont invoice a 3rd party finance company.
I spoke to my chosen provider who did some digging and came back to me saying yes in their experience Lotus wont invoice a 3rd Party when my name is on the order.
I have never financed a car before so this is all new to me. Maybe naive to assume that using ones own chosen provider could NOT be an option.
Has anyone else experienced this???

 

[Kentviking]

Initially I was buying the car cash but 2 years later I have decided to finance half.
Just spoken with the finance agent Lotus have partnered with and he said (in a roundabout way) that its Lotus finance or cash?
Lotus wont invoice a 3rd party finance company.
I spoke to my chosen provider who did some digging and came back to me saying yes in their experience Lotus wont invoice a 3rd Party when my name is on the order.
I have never financed a car before so this is all new to me. Maybe naive to assume that using ones own chosen provider could NOT be an option.
Has anyone else experienced this???

I suggest taking out a personal loan...much cheaper than car finance (like half the interest rate) and no issues with usage (they will send cash to your account which you can then use to pay in Lotus' chosen way)...I was also told by customer services....twice...that I could use a credit card if I wanted and for as much as I needed to...only to be told a week later in the process that this was not actually an option...leaving me in a bit of a mad rush to make up the difference.

 

[Kentviking]

Another option...some credit cards offer interest free cash / transfers (they charge upfront c3-4% for the privilege, but there is then no interest for maybe up to 18 months) - just make sure you repay on time as afterwards the costs become penalising.

 

[Concept24]

I suggest taking out a personal loan...much cheaper than car finance (like half the interest rate) and no issues with usage (they will send cash to your account which you can then use to pay in Lotus' chosen way)...I was also told by customer services....twice...that I could use a credit card if I wanted and for as much as I needed to...only to be told a week later in the process that this was not actually an option...leaving me in a bit of a mad rush to make up the difference.

At my credit union, a 3-year auto loan is at 5.49%, whereas a personal loan is at 9.99% for the same term length.
If I put half of the auto loan in a certificate at 4.2% and keep moving it to maximize its rate of return, my net loan payments could be quite a bit lower, at least in theory.

 

[Kentviking]

At my credit union, a 3-year auto loan is at 5.49%, whereas a personal loan is at 9.99% for the same term length.
If I put half of the auto loan in a certificate at 4.2% and keep moving it to maximize its rate of return, my net loan payments could be quite a bit lower, at least in theory.

I think the the way the US does it makes far more sense. I have operated in financial circles for only some 30 years now and I still don't understand how a personal loan in the UK can be given a lower risk than asset backed finance....but that is how it is in this country (too many intermediaries I'd venture). I got a couple of loans at rates comparable with my mortgage, and at half the rate that Lotus is offering direct.

 

[PJS]

Initially I was buying the car cash but 2 years later I have decided to finance half.
Just spoken with the finance agent Lotus have partnered with and he said (in a roundabout way) that its Lotus finance or cash?
Lotus wont invoice a 3rd party finance company.
I spoke to my chosen provider who did some digging and came back to me saying yes in their experience Lotus wont invoice a 3rd Party when my name is on the order.
I have never financed a car before so this is all new to me. Maybe naive to assume that using ones own chosen provider could NOT be an option.
Has anyone else experienced this???

I'd suggest sucking up the lotus finance for ease - the rate if it's still at 8.9% isn't too bad in these days. The process is all interlinked as you go through checkout and it's pretty slick. If you can find a better deal then you can simply refinance by paying the settlement figure. If you stick with their finance then you at least have a walk away position on PCP if future values tank

 

[Hell4Leather]

I'd suggest sucking up the lotus finance for ease - the rate if it's still at 8.9% isn't too bad in these days. The process is all interlinked as you go through checkout and it's pretty slick. If you can find a better deal then you can simply refinance by paying the settlement figure. If you stick with their finance then you at least have a walk away position on PCP if future values tank

Agree. If it’s a mad dash to the finish and you have the funds available, go ahead and pay the cash out and get a loan, personal or asset backed, later .

 

[Concept24]

8.9% "isn't too bad"? Compared to my credit union's rates it is.

 

[DJManc]

I have a flexible mortgage account which I have 'over paid' on for many years. This enables me to draw reasonably large sums of cash whenever I need and at probably the lowest interest rate available. I am then able to pay it back in lump sums or as a regular monthly payments (as long I meet the minimum payment requirements, which I always try to exceed, thus reducing large amounts of interest repayment). It's as simple as doing an online transfer of funds. No questions asked. This has been the most convenient, cost effective and flexible way of borrowing money for me in recent years. For those that have a similar mortgage situation this may be worth looking into, although it may sound a bit alien to some.

 

[Concept24]

Is that different from a Home Equity line of credit?

 

[DJManc]

Is that different from a Home Equity line of credit?

Same sort of thing I guess.

 

[Concept24]

Those carry a 7.99% interest rate at my credit union.

 

[Flashback]

Those carry a 7.99% interest rate at my credit union.

It's common in the UK that if you take out, say, a 200k mortgage and then overpay by 50k (pay an extra 50k back than you were scheduled to have paid by this point in time), you're then able to withdraw the 50k you're ahead by and then repay that on the same interest rate as the mortgage (much lower than a personal loan).

Similarly with 'offset' mortgages over here - you have a savings account attached to the mortgage and you pay interest on the difference between the outstanding mortgage balance and the balance of the savings account. You can withdraw whatever you like from the savings at any time and for any purpose. You just start paying more mortgage interest again, but it's the same rate as the original mortgage which is generally a lot less than an any personal or car loan.

 

[Concept24]

It's common in the UK that if you take out, say, a 200k mortgage and then overpay by 50k (pay an extra 50k back than you were scheduled to have paid by this point in time), you're then able to withdraw the 50k you're ahead by and then repay that on the same interest rate as the mortgage (much lower than a personal loan).

Similarly with 'offset' mortgages over here - you have a savings account attached to the mortgage and you pay interest on the difference between the outstanding mortgage balance and the balance of the savings account. You can withdraw whatever you like from the savings at any time and for any purpose. You just start paying more mortgage interest again, but it's the same rate as the original mortgage which is generally a lot less than an any personal or car loan.

We can do something like that with 401k accounts. It is essentially borrowing money from yourself.