which loan would be good for a car ?

briandorset

hi, thought id post on here as im looking for a loan to buy a car with but which one would you guys recomend???
im looking to borrow £3000 and put some cash with it to buy a car for approx £5000. this should buy me something of resonable quality, age, mileage and be mechanically sound. im looking for a vw passat tdi. good mgp, low insurance, slow depreication, easy to resale etc...
im in full time employment, a home owner (well the bank owns it!) and ive no debts, im hoping to borrow 3 grand and repay it over 3 years. ive no credit cards but ive got a good credit history. which company would give me a good offer of low interest and no hidden fees? i bank with halifax but it appears their interest is rather high on loans of under £7000.

Tixy

How much can you afford to repay each month? I think all high street banks charge quite high rates for loans under £5k. Santander & Post office are cheaper than some (based on 'typical APRs') but I haven't personally had a loan from either of them.

briandorset

hi, thanks ill look into those two. i can easily afford the repayments which i expect will be around £110 a month. im without a car at the mo, otherwise id save up to but one like i did with my last car. i dont really want to borrow 5k, id like to keep the loan as low as possible really.

jw2003

Some of them have higher rates on all loans under £7.5k - Alliance & Leicester for example

Zopa have rates between 10 & 14%

Typhoon2000

A Vigin credit card will give you 16 months at 3% or whatever the bank transfer rate is. This will be the cheapest you will get but its only for 16 months. Any chance of increasing your payments to pay it off early?

BTW if you have no depts and no credit card and only a mortgage, you may find that you dont dont have a "good credit history' when it come to personal loans and credit cards.

jamesd

Cheapest fast deal would be one of the credit cards like Virgin. Once that deal ends you can go for a balance transfer to another card or just pay the credit card rate on the £1,615.68* balance that will remain after 16 payments of £94.02.

If you're more patient a 0% for purchases card avoids the initial balance transfer fee. You accumulate the £3,000 you need by putting as much as possible of your regular spending on the card and putting the cash to pay for it into a savings account until you reach the £3,000 target. These deals are only available for 9-12 months so you have a balance transfer fee after 6-9 months depending on the deal and how long it takes you to accumulate the £3,000. You can avoid that BT fee by getting another 0% for purchases card after about six months and spending on that one, using the saved money to repay the first. Repeat until the loan is paid off.

*Assumes competing loan is at 8%, so monthly loan payments of £94.02 per month for 36 months. For the credit card £3,000 borrowed plus an interest free 4% balance transfer fee of £120 less the 16 payments. The outstanding balance on the loan would be £1,754.58 after 16 payments, with the card deal saving you the £138.90 difference between the two.

CLAPTON

why not buy a car for 2k ..plenty of decent cars for that

Pinktooth

Hmm I would stop polluting this holographic Universe ad not hav a car at all