car loan help please

mondeoglx

Im looking to buy a new car loan £5000
i want to keep the payments low per month
after 36payments im going to pay the loan off in full
is it better for me to have the loan over the long period
ie 7 yrs just to keep the payments low hope you understand what i mean many tks

DUTR

Some loans add the interest up front and hence no early re-payment penalty.

lawrie28

Try an interest free deal, if you canfind one, but make sure the car is not overpriced to compensate.

How are you paying the loan off in full? are you sure you will have those funds.

A seven year loan will mean you will pay loads of interest, and hardly touch your capital.

A "balloon" option at the end would be better.

Malky

You should be aiming to pay £5000 in 36 months. Let's face it, £5K over 3 years isn't huge money (depending on circumstances) As said already, the interest added over 7 years will probably leave you with near on £5K to pay off after 36 months. You'd effectively be throwing 36 x the monthly payment away rather than paying off any capital. Are you sure you would be able to lay your hands on £5K in 3 years time?