We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Pay my loan off early?
Evening guys,
Im in need of a new family car as mine is costing an arm and a leg in petrol, Tax and insurance(3L V6) It also needs a few hundred quid throwing at it every now and again to keep it on the road, as its now over 10 years old and its got 170k on the clocks and is getting very tired.
I would like to get a newer, safer and more economical car for my family. To do this I would have to borrow the money, about 5k is my budget for new motor.
My current car is costing about £185 pm avg. for tax, insurance and petrol. Not including the genral up keep of the car, this adds another £25 pm avg.
Total =£210pm
The new car is comming in at £115 pm avg. for tax, insurance and diesel and I will factor in £15 pm for genral upkeep
Total = £130pm
I make that to be a saving of £80pm in running costs.
I curruntly have a loan which is finnishing soon, last payment in Sept. This is currently costing £185pm.
I also have one of those new virgin credit cards with the 0% for 12 months deals, I took it out to pay for my car and bike insurance in one lump, to avoid paying interest on them. This has a balance of about £800 and will not increase because I only got it for the insurance payment, not for any other spending.
I don't have any other debt and I earn 25k a year
These are my options as I see it-
Wait untill my loan finnishes and borrow 5k over 4 years to get a new car.
This will cost me about £260pm for running costs and the loan repayment.
Finnish my loan and keep my current car.
Its currently costing about £385pm to run my car and repay my loan, but this loan is ending in Sept and will cost about £200-£210pm to keep the car on the road. But it is on its last legs and I can see the next mot being an expensive one. In the next 6 months it could also do with 4 new tyres and a full cambelt kit (£500 job) it doent make economical sense seeing the car is only worth 1k tops.
Get a defered payment loan now.
I've seen these about but don't know much about them, don't if I can get the same rate as a normal loan.
Pay off my current loan early with the new CC.
Would it be worth it? would I save much in interest considering this loan was at a crap rate of 15% apr and there is only 5 payments left.
Im confident I can get a very good rate on a new loan. I've got a squeeky clean credit history and had no bother getting the virgin card or loans in the past.
So what do you think? It would be nice to get some input from other people, any options I've missed?
Sorry about the lenth of this post, but thought it would be best with all the info.
Cheers.
Im in need of a new family car as mine is costing an arm and a leg in petrol, Tax and insurance(3L V6) It also needs a few hundred quid throwing at it every now and again to keep it on the road, as its now over 10 years old and its got 170k on the clocks and is getting very tired.
I would like to get a newer, safer and more economical car for my family. To do this I would have to borrow the money, about 5k is my budget for new motor.
My current car is costing about £185 pm avg. for tax, insurance and petrol. Not including the genral up keep of the car, this adds another £25 pm avg.
Total =£210pm
The new car is comming in at £115 pm avg. for tax, insurance and diesel and I will factor in £15 pm for genral upkeep
Total = £130pm
I make that to be a saving of £80pm in running costs.
I curruntly have a loan which is finnishing soon, last payment in Sept. This is currently costing £185pm.
I also have one of those new virgin credit cards with the 0% for 12 months deals, I took it out to pay for my car and bike insurance in one lump, to avoid paying interest on them. This has a balance of about £800 and will not increase because I only got it for the insurance payment, not for any other spending.
I don't have any other debt and I earn 25k a year
These are my options as I see it-
Wait untill my loan finnishes and borrow 5k over 4 years to get a new car.
This will cost me about £260pm for running costs and the loan repayment.
Finnish my loan and keep my current car.
Its currently costing about £385pm to run my car and repay my loan, but this loan is ending in Sept and will cost about £200-£210pm to keep the car on the road. But it is on its last legs and I can see the next mot being an expensive one. In the next 6 months it could also do with 4 new tyres and a full cambelt kit (£500 job) it doent make economical sense seeing the car is only worth 1k tops.
Get a defered payment loan now.
I've seen these about but don't know much about them, don't if I can get the same rate as a normal loan.
Pay off my current loan early with the new CC.
Would it be worth it? would I save much in interest considering this loan was at a crap rate of 15% apr and there is only 5 payments left.
Im confident I can get a very good rate on a new loan. I've got a squeeky clean credit history and had no bother getting the virgin card or loans in the past.
So what do you think? It would be nice to get some input from other people, any options I've missed?
Sorry about the lenth of this post, but thought it would be best with all the info.
Cheers.
0
Comments
-
Anyone got any input?:huh:0
This discussion has been closed.
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.5K Work, Benefits & Business
- 615.4K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards