Car finance Vs perosnal loan

mcowan77

folks

looking for some advice

just back from buying a car.

whats my best option

taking our car finance from the dealership - flat rate 7.99%

or taking out a personal loan, roughly 8% APR

loan amount is £9500
i will be looking to trade the car in after roughly 3 years, so ll be looking at at settling the loan early.

salesman in the dealership says i wont get as big a discount off the loan when i settle early with a personal loan, compared with their finance?

advice sought cheers

Ezee_3

mcowan77 wrote: »

folks

looking for some advice

just back from buying a car.

whats my best option

taking our car finance from the dealership - flat rate 7.99%

or taking out a personal loan, roughly 8% APR

loan amount is £9500
i will be looking to trade the car in after roughly 3 years, so ll be looking at at settling the loan early.

salesman in the dealership says i wont get as big a discount off the loan when i settle early with a personal loan, compared with their finance?

advice sought cheers

if you take a personal loan YOU own the car and can sell it when you want...

if you take HP then the finance company owns the car untill the last payment is made...

mcowan77

not taking out HP, its a personal loan from the dealership finance company.

the problem is settling a personal loan early

how dos it work?

CLAPTON

a flat rate of 7.99% is about 15% APR

so a personal loan will be cheaper and the rebate for early settlement is defined by law.

I hope you save up for the next car so you won't have to waste money by paying interest

mcowan77

ideal world i wouldnt need a loan!!!

thanks for your help

CLAPTON

mcowan77 wrote: »

ideal world i wouldnt need a loan!!!

thanks for your help

presumably changing the car in three years is choice thing.
loads of good cheap reliable cars about too.

mcowan77

i need a reliable car, under warranty and i do 25,000 + miles per year,

CHR15

15% against 8% mmmmmm Tricky.

Do you know you can get 8% though? lots of loans are advertised at 8% but a lot of people end up getting offered loans much more than that.

For my money...... If the trader keeps mentioning 7.99% Flat Rate, I already consider him dishonest.

mcowan77

ive submitted an application to tesco - 7.8%, but not heard anything bac so far

my main wory is, whatever loan i choose, will there be a big difference between the early settlement figure for personal loan and finance company?

CLAPTON

the tesco loan has a maximum of two months interest as an early settlement fee........... thats very good

Kavanne

Can you make overpayments without penalty on tesco loan? if so, pay off all but last repayment and voila, you have settled the loan without penalty!!