TSB gives car loan customers free MOTs
Car buyers can get free MOTs when taking a personal loan to buy a car thanks to a limited-time offer from TSB.
The banks existing current account holders seeking to borrow £1,000 to £25,000 for a vehicle over one to seven years will be eligible for the freebie.
Borrowers will receive one MOT voucher for each year the loan is arranged for, a saving of up to £54.85 a year.
The offer runs until 23 October and is subject to availability. Further information is available at tsb.co.uk/car-loans.
If you're buying a car on credit you could probably save a little money with this offer.
TSB charges 3.9% APR for loans in this bracket, so borrowing £10,000 over three years would cost £294.49 a month, paying £601.75 interest over the loan.
RateSetter currently offers the best comparable terms, charging 3.5% APR. That would cost £292.78 a month, or £540 interest overall.
That’s a £60 difference, which will be more than offset by the three free MOTs.
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.
This is used to compare interest rates for borrowing. It is the total (or “gross”) interest you’ll pay over the life of a loan, including charges and fees. For credit cards where interest is charged at more frequent intervals, the APR includes a “compounding” effect (paying interest on interest). So for a credit card charging 2% interest a month (equating to 24% a year), the APR would actually be 26.82%.