£8500-£9000 best options

kayleighj_2

I am looking to get a loan to pay off my car finance, (stupid thing! wish I never bought it but still) I cant sell the car as the finance left is £85??.?? and the cars worth about £6000. and if I want to give it back then I have to pay half of the remaining finance to give it back and get nothing...errr NO!!

Ideally I want:
* 3 year term (maybe 4 to reduce monthly repayments if I can overpay later)
* Ability to pay off sooner without fees
* Good rate (else theres not much point in doing it)
* Around £270-290 pm
* Ability to not pay back for 3months would be great (but I guess that wont happen)

* Am I classed as a home owner as I am on house deeds and mortgages? Joint with mum


Are there ant good ones about, I've had a gander on moneysupermarket but cant see much, Tesco have a good rate although I dont earn over £10,000
Which is the other problem

Thanks in advance
x

bradrock

if u dont earn over 10k u have next to no chance.

jonesMUFCforever

What is the APR on the loan now and how much do you pay each month?

I have to agree with other posters - in today's markets it will be difficult indeed to refinance.
The only thing I can recommend is her bank where her salary goes into - see what is available if anything - some banks will offer a buy now pay later loan where payments are deferred for 4 months but of course the interest continues to be charged and adds many months to the end of the loan.

kayleighj_2

My cars about 22% if not more if i remember right, im not that much bothered by how quick I get it changed as any loan will be better than the 5years my car finance is over, its currently on £239pm.
I am am looking for a new job so I will be on £10,000+
Looking at my options and trying to keep onto of my finances now

standupguy

If you wanted to hand the car back you have to pay half the hire purchase price - not half the remaining finance as you state above.

You need to add up your deposit and all payments made so far and compare that to the half hp figure shown on your agreement.

If the difference is less than the £2500 negative equity you have then it may be worth thinking about?

kayleighj_2

yeah thats what i meant, well no its not worth it, 8900 on finance vs 6000 worth at a push! plus then i need to buy another car to drive which will loose me another few grand, and knowing my luck will always breakdown

smegs1978

Hello,

We had the same problem with our car, we wanted to sell it as we wanted a smaller one, the settlement figure the finance company gave me was £6000, however the car was only worth £3000, so selling it wasn't an option and also like you we also still needed a car.

so what we did was get a loan from our local credit union place, it meant the payments were still over the same period but were less per month so we were better off.

It also meant we could sell our car and get a smaller one.

So have you requested a settlement figure on the car loan, if you have and it was below £7500 you could approach your local credit union to see if they could help.

kayleighj_2

Thanks,
My settlement figure is £8569 if i carry it on over the 5 years its set at i'll end up paying back £4473 in interest from the beginning.

Which is why I'm thinking i'll get a loan at a cheaper rate (after I have increased my income) the finance at £239 over 5years - the loan will work out at about £260 over 3 years with the interest being £1165
What I've paid being : £ 1434...Saving: £1929

Happy Days!

Renovatio

kayleighj wrote: »

Ideally I want:
* Ability to not pay back for 3months would be great (but I guess that wont happen)

If you are definitely wanting to save with the refinancing, having a payment break for 3 months at the start of the agreement will do you no good. In essance it will add 3 months interest that is then compounded over the term of the loan; this alone could cost you £100,'s extra.

jonesMUFCforever

Kayleighj I admire your optimism about getting a better paid job when everybody seems to be cutting down on staff costs.