Saving tips and Finances

Gov.  money to banks to encourage lending has just ended. So hopefully interest rates for savers will pick up slightly because banks will need cash flow. Look out for better rates in the new tax year.  Unfortunately borrowing rates will probably go up so fix now if you need to borrow.

I don't use credit cards but if I did I'd keep an eye on future rates.

Not really an investment, but concerns money and I thought others might be interested. 

3 years ago we bought a car from Toyota. Deposit, 36 monthly payments (interest free) of £145 and then pay a final sum, trade in for new vehicle, extend the finance at a cost or hand back. The variable direct debit we signed was certainly for 36 monthly payments, the first slightly larger for the admin fee.No mention of a final large one as clearly they don't want you to do that. The idea is of course you trade in or extend your credit agreement.

So we were rather surprised that when we finally got them to accept we wanted to pay the final sum, (that took multiple emails / phone calls) they said they would take the final £5,900 by the same means. I fully expected the bank to reject it as it is an extra payment and 40 times larger.

However, this morning on my on line banking it had gone through. So it would seem a variable direct debit is very variable indeed.

Many years ago I purchased a car with a balloon payment at the end. The idea as Steve says was to use any residue of value towards a new car. Unfortunately I found the value left did not make it viable to follow that route as not only had the model changed they had gone up quite a bit in price so I was left with the only option of financing the balloon payment which felt like paying for the car twice. Fortunately I was more than happy with the car!!! Since then I have only purchased outright either by bank loan, from own resources or interest free credit. 

David

I think they discourage final payments as it's preferable to them that you take out a further loan on a new car. A revolving door finance situation for their benefit.

I/we have a number of credit cards between us. We share the use of an Asda CC account that gives us print off vouchers to spend in store. I have a Barclays cards that, among other possible options, allow me to claim credit for my Amazon purchases. (Recently putt £20 into my Amazon account in that way). Also have credit card that allows me to extend warranty on purchased white/electrical goods by two years FOC.

All of our cards are paid off in full by standing order/direct debit (whichever!) so no charges

Personally I would never consider a PCP agreement, remember that the debt doesn’t die with you so beneficiaries would have to stump up the outstanding on the agreement.  PCH is a rental agreement so the debt is non existent if you die, the car is just returned.

Personally I would never consider a PCP agreement, remember that the debt doesn’t die with you so beneficiaries would have to stump up

In truth it is the estate that would trump up though

Only if there is an estate, they cant take what you haven't got.

If there were no estate there would be no beneficiaries.

Our  joint current account has to have £2500 in it at the end of the month to receive the 3% interest, which is fine.

We also have a Loyalty instant access savings account with the same bank. Interest rate on the savings account is the same rate that an ISA is getting at the moment so not bad. We tend to keep most of our funds in the Loyalty because of this, easily moved from one account to another as same bank. 

Other accounts with other banks picking up good interest rates all get 'funded' by the loyalty, SO's set up and money just gets moved around picking up interest. 

A couple of CC each so plenty of available credit should we require it, gets paid off every month by DD, I rarely have cash in my purse these days, OH does usually have about £50 in his wallet just in case.