Should i take a loan out?

ashlea170706

hi there recently we have been tryin to buy a new car as mine is very old and could cut out any day but we cant afford to wait as my partner works 7 days a week at the moment so as soon as this car dies on us we need the new car straight away!we were going to do the scrappage scheme but after tryin everything we cant afford the repayments on it at 157 pounds a month being the cheapest we can find! so instead we have been to local car dealerships to get a 2002-2003 car which hasnt done too many miles in our budget.this proved difficult but we have now found one suitable but we need to have it on finance with them and it was going to cost 98 pounds a month at 3995 over 4 years but we also went to see if we could get a loan from the bank to see if it was cheaper repayments but theres was 102 pounds over 5 years so they are a year extra and more expensive so now we are not sure what to do whether get another loan from somewhere else or go with the garage on their car finance the only things to bare in mind are that we are both only 21 years old and we dont have a very good credit score because we dont have anythin to pay etc! i would be grateful if someone could help me as we really dont know whats the best way to go about this!thanks ashlea x

russt2000

hi, just a bit of info , if you buy from the garage the loan is setagainst thecar ,so if you defaulted they would repossess the car. If you borrow from bank, then that money is yours to spend , so you could have the cash to part ex your old car for a bit and negociate with the cash fo a better deal.

Remember its a buyers market, so shop around and be hard with the salespeople