Car on finance or bank loan?
But I'm looking to buy a new car in the near future.
If I took a bank loan, I could use some of the loan to pay off the money I owe my mum and use the rest to get a new car.
But if I take out finance on a new car, I will still have the rest of the money I owe my mum to pay. Although I heard that places like Arnold Clark will write a cheque to pay off what you owe on your old car - something I would like to do.
What do you think I should do? Visit the bank or go with a dealer and get finance.
Answers:
Bank or places like Tesco, they charge about 6.5% interest, they are far cheaper than car finance which is about 15% if not more.
Bank loan. car finace is more expensive.
arrange independant finance.go to www.moneysupermarket.co.uk for deals..it is a great search engine
I would agree with cfcturner, the bank will listen if you have problems, the car finance will send the boys around.talk to the bank about a consolidation loan, and tell your mum she is a wonderful person to help you the way she did.
A loan through your bank generally offers a better interest rate than a finance house.
The dealerships usually have a deal with a finance house so will usually try to push you towards that for commission.
Basically get some quotes and see who works out the cheapest.
Look at what you are borrowing and how much you'll actually be paying back.
Most reputable lenders can provide this forecast for you
get a loan from a bank, but DO NOT get their insurance policy its a con, the actually loan you the money to pay the insurance ( it ends up on top of your loan) so you pay interest on it ggrrr. Also it a rip off anyway and trying to make a claim is very hard to, it wouldnt cover me when i lost my job, get isurance from an independant broker it will be around 5% of the cost of your loan the banks insurance adds 20% to the cost of your loan.
Car finance is a BIG CON the APR will be around 12.9% which is twice that of a bank loan and if you miss a few payments your stuffed they will take the car off you and say its worth half what you payed, they will take that off what you owe and take you to court for the rest, so youll owe thousands and still have no car!!This happened to my friend.
Bank loans tend to have a lower interest rate by 3-5%. Also the loan should not be in cash. Banks do not like giving away money for nothing even if you buy the car. With a bank loan for the car the rates will be cheaper and the bank has a car if you default. Cash loans are 14-17% APR as a car loan is 3-7% APR. You better off to get a bank loan for the new car and re-finance the old car loan. 4-8% APR if that is a better rate.
Search online for the best credit deals. Run price checks.
Alternatively, just wait until you have finished paying for your existing car b4 purchasing another. It's more sensible.
Don't struggle!
bank loan because if for any reason you miss payments your car wont be towed straight away.
miss loan payment - no car -no money
miss bank payment-loads of nasty letters lol
Check the interest on the bank loan for the new car & it can/will change by the time you are ready to buy the car,so check the fine print very well before you sign.
I got an offer thru mail from Capital One a few yrs ago for a big loan for anything I wanted & the interest was 2.99.
I called their 800# & checked whether it would go up in a few months or yrs-to this day, no it hasn't. My bank got fighting mad at me for not using the bank loan & it was 12% interest.
Capital One sent me a blank check, I had to deposit it into my bank account & wait 7 days to clear it thru my bank & then off I went to buy my car,deal was already made & I held the title (still do) from that 1st day of the transaction.
There's always a better financial deal out there if only we take all the patience necessary to find it.
bank loan for sure
You are heading down the wrong path my friend. Don't ever get finance from a dealer that is where they make there money.
All of the cars that my company supply to customers are from dealers but I would never advise my customer to take finance from them. We concentrate on getting the best deal on the car and then getting the finance through our partner the bank of scotland.
There are many ways to finance cars these days ie pcp, hire purchase contract hire. Visit our website www.introcars.co.uk to get an instant quote on any make and model. We are based in Essex but will supply cars Nationwide. Any questions call one of our team, we are available until late, normally 9ish.
Go to a dealer , are you part exchanging your old car?
If you are then this is how it goes: 1.get valuation on your current car from dealer 2. If it is more than amount they need for a deposit for new car you will buy from them, then you can take difference back as a cheque and use to pay off all or most of bank loan.It all depends on how much your current car is worth and also find a new car deal with minimum deposit terms and also 0% finance but remember low deposit means higher repayments and over a longer term.So look about there are deals out there.REMEMBER NEVER ACCEPT 1ST OFFER.Dealers are desperate to sell especially at this time of year.Good luck. Oh by the way the guy above is just a dealer by another name, still finance!!
no save up until you can afford a little run around babes dont burden urself with loans and all that just save
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