P537 ORACLE 537 Sat29 Jul C4 2200:00  2/6     Financing a car  Fixed rate loans are a good idea in times of low interest rates because fixed rates won't rise while the bank base rate is taking off. However, if interest rates are high, as they are now, you may find yourself locked into a high interest rate loan while rates in general are falling. Also, while most fixed loans have no interest rate penalty if you repay early, this may not be worthwhile. Although the monthly re——xlfnts are at a fixed rate, the interest is actually on a sliding scale - higher at the beginning and lower later. more > Your Money index 530 Nat Savings 538 Nat Savings Tourist Rates Rock/Pop City
P537 ORACLE 537 Sat29 Jul C4 2211:11  6/6    Financing a car  Although the difference between the fixed and variable rates are small now, this gap would widen if rates fell. A few more points. If you are thinking of using the secured loan method, also consider some form of income protection policy against illness and job loss. Secondly, not all lenders offer both types for cars, and, in any case you should not consider a loan longer than you intend to keep the car. Thirdly, you should shop around for secured loan rates in the salf way you would for unsecured loan rates. more > Your Money guide 530 Nat Savings 538 Nat Savings Tourist Rates Rock/Pop City
P537 ORACLE 537 Sat29 Jul C4 2200:00  1/6     Financing a car  by Carol Oliver Buying a car is an expensive business, so it makes sense to consider the money side as carefully as the car itself. Buying a new or second-hand car often means there will be a need to finance part of the purchase with a loan. Typically you will find that these are at a fixed interest rate over a fixed period with a fixed monthly re——xlfnt normally 12 months to five years. They are offered by banks and many building societies. Car dealers often offer finance loans too. more > Your Money guide 530 Nat Savings 538 CHESS has moved to p617 Nat Savings Tourist Rates Rock/Pop City
P537 ORACLE 537 Sat29 Jul C4 2200:00  2/6     Financing a car  Fixed rate personal loans are unsecured which means that you have not offered collateral such as you do when you get a mortgage (the deeds of the home are held as a security against default) Because they are unsecured, the interest rates are higher. They do vary from lender to lender, so you can cut your monthly outlay by comparing rates. You can do this using the Annual Percentage Rate (APR) which lenders must quote. The APR includes costs as well as the annual interest rate, so generally the lower the APR, the better the deal. more follows > Your Money index 530 Nat Savings 538 Nat Savings Tourist Rates Rock/Pop City
P537 ORACLE 537 Sat29 Jul C4 2201:00  4/6   Financing a car  Is there an alternative to fixed loans? One major way for home owners is a secured loan. The interest rate is lower and variable, so if rates go down they will too. It can also usually be repaid without penalty at any time. The rate is lower because you would be offering part of the equity locked up in your home against possible default, but that means you could lose your home if things go wrong. For this reason it is only worth thinking about if you are financially secure and need a way to avoid being locked into a high interest rate. >> Your Money guide 530 Nat Savings 538 Nat Savings Tourist Rates Rock/Pop City
P537 ORACLE 537 Sat29 Jul C4 2210:01  5/6    Financing a car  So how could you save on monthly repaxlents now using the secured loan method. The Halifax Building Society supplied monthly re——xlfnt example for its unsecured and secured loans: -------------------------------------- Unsecured loan: APR 22.9% fixed rate Three years Five years £3,000 £112.84 £80.96 £5,000 £188.07 £134.93 Secured loan: APR 18.9% variable rate Three years Five years £3,000 £107.74 £75.40 £5,000 £179.56 £125.67 ------------------------ more follows > Your Money guide 530 Nat Savings 538 Nat Savings Tourist Rates Rock/Pop City