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Advice needed on paying off Car Loan
MD_SANDERS
Posts: 3 Newbie
in Loans
Just wanted some advice, I have a Higher Purchase agreement on a car which I took out over 3 years.
At the time I was single and had plenty of disposal income and so looking back I just went for the easiest finance available. I borrowed £5000 and as a result of my lack of reading the small print I ended up being charged £1300 total credit charge over the 3 years
Obviously 1 year older and much wiser
my circumstances have changed and am trying to save for a mortgage.
I want to sell the car and downsize but can't afford to pay it off in one go? What are my options? (Theres about £3500 left to pay)
Obviously I have thought about getting another loan with cheap repayments and using this to pay off my finance agreement, then sell the car and with the money pay off the additional loan leaving me debt free:)
However the thought and logistics of this scares me,
Help
Matt
At the time I was single and had plenty of disposal income and so looking back I just went for the easiest finance available. I borrowed £5000 and as a result of my lack of reading the small print I ended up being charged £1300 total credit charge over the 3 years
Obviously 1 year older and much wiser
my circumstances have changed and am trying to save for a mortgage.I want to sell the car and downsize but can't afford to pay it off in one go? What are my options? (Theres about £3500 left to pay)
Obviously I have thought about getting another loan with cheap repayments and using this to pay off my finance agreement, then sell the car and with the money pay off the additional loan leaving me debt free:)
However the thought and logistics of this scares me,
Help
Matt
0
Comments
-
As the car belongs to the finance company you can't technically sell the car before you have paid it off. First things first.....ring up and get a settlement figure. Then get a valuation of your car (https://www.whatcar.com - valuation tab on top right).
A lower rate loan to clear the finance sounds an idea. Then sell the motor and put the sales proceeds towards the new loan. Make sure you get one that doesn't charge you for settling early (Northern Rock don't from memory).0
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