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Loan/Car Loan Advice

Last post Mon, Dec 17 2012, 3:51 PM by fenny303. 3 replies.
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  •  Mon, Dec 17 2012, 3:51 PM

    Re: Loan/Car Loan Advice

    pay off the current loan.it will stop you paying any more interest. take a look at a new car if you ask around you will find you are entitled to a great deal with a partners allowance with one of the big car companies,no advertising but it begins with a V. this gets you an extra 8% off the price of the car. put down a couple of thousand deposit to keep your repayments down and pay off the rest at 0%.(over a maximum of 5 years) keep your £5,000 in the isa to try to earn what little interest you can.
    • Post Points: 5
  •  Fri, Dec 14 2012, 1:16 PM

    Re: Loan/Car Loan Advice

    Not being aware of your financial circumstances or your creditworthiness, I could only offer you my opinion on the measures that I would personally take given your position.

    I would firstly pay of the existing loan entirely, then set my sights lower by purchasing a much cheaper but nevertheless perfectly suitable car for around £5k.

    That should still leave you with around the £5k funds that you need to start saving towards your deposit for a property. This may not be what you would like to hear, but it saves you paying any interest out on loans, which enables you to save more money much faster towards a deposit. At the same time the car will be totally your own property and very importantly without the burden of you owing any money on it in these uncertain days.
    • Post Points: 5
  •  Thu, Dec 13 2012, 11:15 AM

    Re: Loan/Car Loan Advice

    No takers?
    • Post Points: 35
  •  Tue, Dec 11 2012, 7:06 AM

    Loan/Car Loan Advice

    Hi.

    I'm currently serving in Afghanistan. I sold my car before I left. The personal loan for that car will have £5000 left on the balance when I return. I have £5000 from my car sale in an ISA. I will have about £15000 when I return "including" this £5k in my ISA. I want to purchase another car priced at roughly £11-12k max and Id like to save £5k to start building my deposit for a mortgage. Yes, I could use ALL the money for a deposit but at present, my credit and income are, in my opinion, not yet in a suitable position to maintain something like that. In 2yrs time...it will be. So, back to the plan; do I:

    A) Pay off my current loan in full and seek a new one for the total cost of the car ?

    B) Get a top up of about £6000 on my current loan (who knows, the APR might even drop) and use a further £6000 of my savings?

    C) Any other suggestions?

    I appreciate you taking a look at this.

    Kind regards.

    • Post Points: 5