APR for Mini Hire Purchase Finance

[turbosx200]

I'm after some advice from people that have financed their Mini's with Mini HP finance. I'm taking a loan out for 17k over 60 months and the APR is 9.2%. Is Mini trying to rip me off as I see that other car makers are offering finance as low as 4% APR.
According to Mini finance, the 9.2% is the lowest rate they can offer.

[matfrost]

Interest rates are not as low as they were. Banks are doing loans for less than 9.2%, might be worth shopping around.

[Streeters]

Most dealers are only able to offer rates at less than 10% apr with some support from the manufacturer.
Some manufacturers are still offering 0% apr finance deals. MINI are lucky they dont have to subsidise their porduct or their dealers, we'll still buy them anyway.
In the current market 9.2% apr is a good rate tbh (about 4.5% flat rate). When you look at bank base rates theyare running at around 5% SO 4.5% is less then cost in theory.
You may get a cheaper bank loan but it wont be secured against the vehicle so you will lose termination rights and protection under the consumer credit act.
Hope that helps

[Mr Silverblood]

When I was ready to purchase a Clubman 2 months ago, I was told my credit was rated as excellent, which qualified me for BMW's best rate.

When I asked what that rate was exactly, I was told it was "...in the 5's..." So I had been figuring worst case, 5.9%. Not sure how much these things differ between the residents of the UK and the US, but I agree with MatFrost, shop around.

[Woody'sCooper]

Most finance houses base rates vary from the Bank Of England Base Rate - at the moment our best rate is 4 3/4% which customers can have but it is effectively at cost (above that flat rate we can earn commision), but manufacturer supported rates on certain models give us 1% flat rate as well as 0%APR

The simplest way to compare finance is not to use APR as that varies massively depending on the length of term and amount borrowed.

Compare FLAT rates. Anything sub 5% is good, any lower than that and you're laughing.

Remember though, that bank loans may have lower advertised APRs but these are sometimes misleading. firstly, they are 'typical' rates. This means on 2/3rds of all applicants must get that rate, the other 1/3rd get any rate. In addition, they may also offer this rate only on certain amounts borrowed and not others

Also, sometimes people with squeaky clean credit historys can struggle to get approved. remember the banks want to make money from lending, so if you settle everything early you earn them very little. In some ways, its worth than having several maxxed out credit cards on your history!!