Just come across this... shattered dreams 😕 (1 Viewer)

[iandsm]

As far as I am aware being ex services or having a debility does not make one a special case , it hasn't in my case although I must admit I havn't played that particular card, it's one I much prefer to keep close to my chest.

 

[Lenny HB]

The car adverts bug me they never give you a price just how much a month it will cost. I'm not interested in monthly payments I want to know how much is the item I want to buy.
I don't get to the supermarket checkout and they say that will be £10 a month sir.

 

[olley]

It's you that needs to check their sums.

It's a bank loan Lenny, you only pay interest on the outstanding loan amount which continually decreases over the term.

 

[Lenny HB]

It's a bank loan Lenny, you only pay interest on the outstanding loan amount which continually decreases over the term.

But the figures they quote for a load are always the flat rate per year not the APR.

 

[The Wino]

I don't get why people are happy to take on a vehicle on finance quite often for longer than they usually keep vehicles for. When I was a student I borrowed to buy a motorbike I was still paying it off a year after I got rid of it never again. We always buy from savings and treat it as lost money like buying anything else apart from property. If there's much value left when we sell it's a nice bonus. It's a bit different with motorhomes but in the case of a car on HP by the time you add the interest and take off the immediate depreciation I bet a lot of people are close to losing a third to a half of the total to repay but somehow manage a mental disconnect that makes the car look like an asset worth what they have borrowed including the interest.

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[olley]

But the figures they quote for a load are always the flat rate per year not the APR.

I can only tell you what nationwide quoted, and money supermarket says the same.
Money super say it's calculated on the Apr.
As I don't need to borrow £25 grand this is all a bit academic.
Finance is not my thing, if it was I would be a damn sight richer than I am now.

 

[The Wino]

I can only tell you what nationwide quoted, and money supermarket says the same.
Money super say it's calculated on the Apr.
As I don't need to borrow £25 grand this is all a bit academic.
Finance is not my thing, if it was I would be a damn sight richer than I am now.

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If you put in the APR it's going to calculate it based on that but as Lenny HB says a lot of vehicle finance is advertised at the flat rate of interest that's about half the APR

 

[Lenny HB]

I can only tell you what nationwide quoted, and money supermarket says the same.
Money super say it's calculated on the Apr.
As I don't need to borrow £25 grand this is all a bit academic.
Finance is not my thing, if it was I would be a damn sight richer than I am now.

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They always used to quote on a flat rate, I can't even remember the last time I borrowed money.

 

[The Wino]

They always used to quote on a flat rate, I can't even remember the last time I borrowed money.

The last time I borrowed to buy a vehicle was the motorbike in 1982!

 

[Howard B]

Took out a £20k bank loan over 18 months to part finance our last van. We paid £800 in interest. The investment i was going to cash in made £3k in the same time period.

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[Minxy]

Took out a £20k bank loan over 18 months to part finance our last van. We paid £800 in interest. The investment i was going to cash in made £3k in the same time period.

That's the way to do it! We're playing the long term 0% rate credit card game, use them for all outgoings and put the money we'd normal use to pay the bills into a high rate savings account ... earns a nice bit of dosh! It's even better if you can then get a 0% transfer card at the end and move the balance owing on to that ...

[Caveat: you should ALWAYS ensure you WILL have access to the money to be able to pay off the CCs in full when you needed to.]

 

[Ninjabob]

No mention of how shoddily the Rapido had been put together in the first place. Not much on that list that couldn't be rectified pretty easily and quickly. Stop/Start vehicles as I understand it only charge their special batteries to 80%. Having the wrong battery certainly would not help with starting. If you have to pay that much on finance you really probably couldn't afford it in the first place. Being disabled is an important factor but being an ex forces veteran is totally irrelevant.

Just this week I was offered a new Mustang Mach E (top of the range) with £10000 deposit contribution and 0% finance over 24months - now that's the kind of finance deal you do want!!

Which as a complete aside shows how they cannot sell perfectly decent EVs for love or money at the moment.

 

[The Wino]

That's the way to do it! We're playing the long term 0% rate credit card game, use them for all outgoings and put the money we'd normal use to pay the bills into a high rate savings account ... earns a nice bit of dosh! It's even better if you can then get a 0% transfer card at the end and move the balance owing on to that ...

[Caveat: you should ALWAYS ensure you WILL have access to the money to be able to pay off the CCs in full when you needed to.]

It's a bit different putting it in a savings account than in an investment. The difference being in the first you're money is given some conditions safe in the second you are gambling it. It may sometimes pay off but!
So Minxy in your case if you're buying on guaranteed zero rate interest and putting the money in a savings account good on you if you put the time in there's a guaranteed return but borrowing money to keep an investment is a different kettle of fish it could turn out well or if the investment loses value it could be lost money on the interest and the investment

 

[Lenny HB]

That's the way to do it! We're playing the long term 0% rate credit card game, use them for all outgoings and put the money we'd normal use to pay the bills into a high rate savings account ... earns a nice bit of dosh! It's even better if you can then get a 0% transfer card at the end and move the balance owing on to that ...

We have a Barclaycard like that with 4k on it, 0% for 2 years.
Like you and a lot on here we are aware what we are doing with finances but there are a lot of people who will take out these deals and just spend the money then can't afford to pay it off at the end of the 0% term & of course that's what the CC companies want as the customer is then locked into paying it off at high interest rates.

 

[Minxy]

It's a bit different putting it in a savings account than in an investment. The difference being in the first you're money is given some conditions safe in the second you are gambling it. It may sometimes pay off but!
So Minxy in your case if you're buying on guaranteed zero rate interest and putting the money in a savings account good on you if you put the time in there's a guaranteed return but borrowing money to keep an investment is a different kettle of fish it could turn out well or if the investment loses value it could be lost money on the interest and the investment

Totally agree - I remember many years ago when Kingston Communications was floated (Hull's telecoms monopoly, no BT here!) and people were takig out £20k loans to buy the shares!!! Some will have made a LOT of money as they rose spectacularly from around £3 to £17 but, and that was a BIG but, there was a fair delay between buying the shares and actually getting details of them through in order to sell them ... so I suspect a lot didn't get to sell at the £17 price but still more than like around £12, still a decent profit but certainly NOT something I'd risk. They eventually fell to well below £1 and never recovered much so a lot of people will have lost a lot of money too.

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[Minxy]

We have a Barclaycard like that with 4k on it, 0% for 2 years.
Like you and a lot on here we are aware what we are doing with finances but there are a lot of people who will take out these deals and just spend the money then can't afford to pay it off at the end of the 0% term & of course that's what the CC companies want as the customer is then locked into paying it off at high interest rates.

Yup, you've always have to ensure you'll have the money to pay off when the time comes and don't treat it like a 'freebie' and go on a spending splurge, not even the anticipated 'interest' you'll earn from it being in a savings account as in a lot of cases as we've seen over the last X number of years that can drop like a stone and not recover for a very long time.

 

[The Wino]

Yup, you've always have to ensure you'll have the money to pay off when the time comes and don't treat it like a 'freebie' and go on a spending splurge, not even the anticipated 'interest' you'll earn from it being in a savings account as in a lot of cases as we've seen over the last X number of years that can drop like a stone and not recover for a very long time.

At the moment we're glad we got some into the one year national savings bonds when they had a good rate

 

[Minxy]

At the moment we're glad we got some into the one year national savings bonds when they had a good rate

Same here and also a Santander easy access saver at 5.2% (not available now).

 

[Red Sonja]

Reading the advert again I do find some things strange. They did 4000 miles in the van. Most things on the list could have been put right by the dealer. The Omnibudsman didn't find against the dealer but said Black Horse Finance should take the van back.

Is the veteran out of pocket and after compensation. How do they know Brownhills bought the van at auction and then resold it 3 days later especially as its changed it's registration number.

 

[chesterfield hooligan]

Black Horse finance is a funny way to finance motorhomes it is worked out over 10 or 15 years their van was 10 year's fixed £104,000 divided by 10 year's then devide by 12 month's £866 per month if sold the next day the total amount is payable £104,000 for a £74, 000 campervan.
Most people would run a mile from them but if you are credit worthy there are places that do £1000 deposit and away you go.
Cheaper than renting some houses.

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[The Wino]

Black Horse finance is a funny way to finance motorhomes it is worked out over 10 or 15 years their van was 10 year's fixed £104,000 divided by 10 year's then devide by 12 month's £866 per month if sold the next day the total amount is payable £104,000 for a £74, 000 campervan.
Most people would run a mile from them but if you are credit worthy there are places that do £1000 deposit and away you go.
Cheaper than renting some houses.

No wonder they paid so much interest 10 years is a really long period to finance a vehicle. If it was coming out of the pension I wonder if the realisation after a while that it was going to be a long time before getting back to the full pension affected the decision to try to return it.

 

[97243]

Black Horse finance is a funny way to finance motorhomes it is worked out over 10 or 15 years their van was 10 year's fixed £104,000 divided by 10 year's then devide by 12 month's £866 per month if sold the next day the total amount is payable £104,000 for a £74, 000 campervan.
Most people would run a mile from them but if you are credit worthy there are places that do £1000 deposit and away you go.
Cheaper than renting some houses.

No wonder they paid so much interest 10 years is a really long period to finance a vehicle. If it was coming out of the pension I wonder if the realisation after a while that it was going to be a long time before getting back to the full pension affected the decision to try to return it.

From the Black Horse website ....

How it works​

• You'll agree an initial deposit, your agreement term and your monthly repayments with the dealer.
• Your deposit will be taken from the price of the motorhome.
• You'll then pay the remaining balance plus interest in equal monthly repayments over the agreed term.
• Black Horse buys the motorhome on your behalf and owns the motorhome for the duration of the finance agreement.
• After you've made all the repayments including any interest, you will become the owner of the motorhome.

 

[Otter Spotter]

They always used to quote on a flat rate, I can't even remember the last time I borrowed money.

The rules were changed 6 or 7 years ago I believe and they had to start using the APR to show costs not flat rate.

 

[97243]

The rate they borrowed at was 7.75% fixed for 10 years, which, for 2021, seems a bit high to me. In any event a commitment to those terms was madness.

 

[Paul Wilkins]

Have to say I have visited Brownhills in Newark on a couple of occasions. Looks too much like a pile 'em high, sell 'em high kinda place. This thread just backs up my misgivings.

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[Coastal Cruiser.]

The chap could have got a Morelo on a bit of finance

 

[Joethejoiner]

No wonder they paid so much interest 10 years is a really long period to finance a vehicle. If it was coming out of the pension I wonder if the realisation after a while that it was going to be a long time before getting back to the full pension affected the decision to try to return it.

Car salesman mate often dropped interest rate to get a sale .
Surely motorhome dealers , if pushed , can do this too ?

 

[Fulham Dave]

We paid the balance of £126,000 on our van by acquiring 13, zero % credit cards from 11 different lenders - (some in my name, some in the wife's name) with repayment times between 18 and 27 months. We then put money away each month in a 'high' interest savings account until it was time to pay them off in full.

 

[Ducatian]

They always used to quote on a flat rate, I can't even remember the last time I borrowed money.

Buying Motorhomes on finance seems to be a modern thing of the last 10 years or so, previously very few were bought on finance as most were bought by retired & semi-retired people.
It's the modern generation, have to have it now, can't wait to save up for it.

We dreamed about having a Motorhome for 10 or 15 years until we could afford one.
I will admit we did borrow a few k for our first one but only because we didn't want to use too much of our cash reserves also borrowed at a very low interest rate as my wife worked for the bank.

Now you remember?

 

[Roby2008]

No wonder they paid so much interest 10 years is a really long period to finance a vehicle. If it was coming out of the pension I wonder if the realisation after a while that it was going to be a long time before getting back to the full pension affected the decision to try to return it.

In Germany financing a MH over 10-12 years is common, it is seen as a longer term and more secure investment than a car, we did our first MH over 10 and paid it off after 7, the next (current) MH was paid for cash, the standard pension lump sump method, but without a long term finance we would not have had our first 10 yrs of MH life and only just be starting.

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