Chances of getting a loan with a good rate?

A question about : Chances of getting a loan with a good rate?

My husband is looking to buy a new car but needs to get a Ј15,000 loan. The car finance company offer a loan of 4.9% but we have 'seen' better elsewhere. Just wondering with the following facts if it's worth trying to see if we can get Sainsburys 3.9% loan?

His income is Ј42,500
He has a 0% interest cc with Ј1,500 left to pay
We have a mortgage
We have Ј50 interest free sofa payment monthly
He has a phone bill every month
He's never missed payments on anything
We are on the electoral register

I know no one can tell us if he will receive the advertised rate but do you think it's even worth trying?

Thanks

Best answers:

• Impossible to tell. However is that 4.9% rate APR or flat? Car dealers tend to use the latter.
• On the quote given to us by Nissan it says:
  The rates of interest which apply to credit agreement: 4.86% per annum fixed
  Annual Percentage Rate of Charge: 4.86%
  This is the total cost expressed as an annual percentage of the total amount of credit.
  The APR is there to help you compare different offers.
  So assuming this is APR not flat rate?
• He can use the loans eligibility checker on the loans section of MSE. This will tell him which loans he is likely to get and will not affect his credit rating.
  There are some very cheap loans out there at the moment but only those with squeaky clean histories will get them.
  Always look at the total cost, not just the repayments. Car finance is notorious for being vague and adding nonsense like acceptance fee and purchase fee at the end. Equally some finance deals actually give you discounts on the car NOT available if you are paying in full. Which should give you a pointer that you are not dealing with a car showroom, their business is finance!
• We have done the eligibility check and the best rate overall is 3.7 APR with Sainsburys and said he has a 96% chance of getting the loan. But I'm guessing that's just getting the loan and not necessarily the rate advertised?
  He has a squeaky clean history so I'm hopeful but want the best rate possible.
  The plan was to borrow the money from my parents initially but put a small amount (Ј2,000) of the car on the finance because they give you Ј1,000 for doing so. Pay that off straight away and then get a loan out to pay my parents back. Is this a good way of doing things?
  I think we will try Sainsburys and hope he gets a decent rate.
• If you get that rate the total cost over 5 years Ј16428.53
  Even with the 1k off ask the total cost using their finance. The difference in interest rates equates to an extra Ј470 plus add ons for their ridiculous imaginary costs may well put it Ј600 ish. So at least armed with this you could maybe squeeze them to the point where the difference is negligible.
  Like i say focus on the TOTAL COST using both forms of finance, ignore everything else unless it has an additional monetary value such as free insurance etc.
• Thanks for your help. We will apply for this loan and see what rate we get. I'm assuming you don't have to take it if you don't get a good rate?