Pay off car loan or not ...... ?

jimpix12

Hi guys

Quick question: I am looking to buy a new car. I have £3k left to pay off of a £7k loan (for my old car). I can pay the £3k off today but...

Would it be better to go into the dealership and then have them add on £3k to the next car I buy? They have said they can do this to resolve all outstanding finance.

Main thing I am looking for is how it will affect my credit rating - or will they both have the same effect? Of course the other concern is that if I go for the first option and pay off the loan myself , then it will take weeks to show up on my credit rating, thus applying for a loan will have to be delayed.....

Any thoughts or advice appreciated! I will need to take out a similar amount of finance on my next car.

Incidentally, does anyone think that obtaining £7k-£8k will be difficult with someone on a good/fair credit score? I am self employed with 2 years of certified accounts and earn £30k gross.

CLAPTON

best thing to do is to use your money to pay off the existing loan;
keep the existing car ;
and enjoy not giving your hard earned money to banks in interest
but rather spend it on your family, friends, yourself or even save it up
so you never ever again have to burn money by paying interest (except for mortgage of course)

jimpix12

Who said it was hard-earned?

The current car has to go, it's terrible.