we only went to look around at glossop caravans over bank holiday weekend but ended up buying a new swift elegance 565 which we pick up end of june, after trade in and £5,000 we will pay we were left with £12,800 to pay on finance over 10 years, after sitting down at home and mulling it over, over £7,000 interest seems a lot, i wondered if we could cancel finance before we start paying and get a loan instead any opinions would be gladly welcome
It sounds a lot of interest.Have a look on Money Saving Expert web site.It is great for consumer savings and options.I think they can help with best interest, interest free periods and switching loans.
I'm guessing your APR is around 11%. You could do better with just about any bank with a personal loan but you might struggle to get the money over 10 years.
The bonus with a personal loan is cheaper rates no admin charges and after 3 years if you want to change the van you don’t have to clear the finance to sell it
Call them and speak to them. The sooner the better. I thought the cooling off period applied to all premises, and you aren’t cancelling the contract to buy, just arranging your own finance.
------------- Started with a motorbike and tent.......my gallery, my life.
Just be warned that some dealers actually partner with finance companies and the finance company will probably pay the dealer a kickback for every customer they get, so they may try and fob you off. Best to do a little research first and have a word with citizens advice.
That's how it was back in the day when I worked for a car dealership and I would imagine its the same for caravan dealers.
A quick look shows the best 10 year loans paying less than £2500 interest and the worst more than 12000.
Worth looking around.
Top Tip - like car sales, caravan dealers will turn a good price on a caravan to you, into a good profit for them, using finance. They will have a base rate to which they will add as many % points as they think they can get away with, which goes into their pockets along with a commission. All they want the punter to think about is the "affordable" monthly payment.
BUT - they desperately want a deal on the day because they know that punters who leave the showroom rarely come back without demands or alternative quotes. You can use this to threaten to apply for a bank loan, and almost certainly they will cut back their commissions and your finance rate to secure the deal, on the basis that a small profit is better than none and because salespeople are under severe pressure to make targets.
You might also land some freebies if you play canny.
Can anyone tell I was a car salesman for a while some years ago
------------- Camping Gear expands so as to fill the space available for its transportation.
The interest is high due to the loan length of time to repay if you go back and change the term to 5 years the interest will be a lot lower. We almost done the same thing as you have but after careful consideration we decided to keep what we got and keep our money in our pockets we are glad we did after all we have just been away for a lovely weekend had a great time had by all, we realised that our caravan although 10 yrs old is just as good as a newer one especially for how ofton we get to use it.
------------- its our imperfections that makes us perfect
Worst case scenario is get a personal loan and pay off the finance. might cost a couple of hundred in fees and interest, but there are now laws governing what can be charged to you.
------------- Camping Gear expands so as to fill the space available for its transportation.
thank you for your replies, we have spoke to glossops finance department and they say we don,t have a cooling off period because we have signed a contract, they say we can drop out of the finance after we have paid 5 payments and we would only have to pay 1 months interest to do this.
Is it Glossops own finance or someone like Black Horse or Lombard. If it is a well known finance company call them to discuss. You can terminate your agreement early albeit with a penalty so check what a personal loan will cost you and see if the penalty charge is worth paying.
Glossops may be saying make 5 payments as this may be the number of payments that have to be made to ensure they do not get a debit back for commissions etc from the finance company.
10 years to me is a rope around your neck and at the end of 10 years your van will have devalued in price.You dont know whats round the next corner for you.
Sorry i would sell your van private then get a small loan if you want a different one..
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Topic: new caravan
