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Car finance question.

pmidd
pmidd Posts: 1 Newbie
in Debt-free wannabe
I have car finance of £9500 with an APR of 19.7% can anyone tell me if it would be better to take a loan out to pay if off ?
Thanks in Advance.:confused:

Comments

  • crawley_girl
    crawley_girl Posts: 2,010 Forumite
    Part of the Furniture Combo Breaker
    Only if the APR on the loan was lower than 19.7% or if you could make overpayments without being penalised.

    It alos depends on how many payments you have made so far and the length of the 'proposed' loan.

    Lots of things to think about before your question can be answered (but I have a sneaky suspicion that you could get a lower rate for the same term and thus save you money)

    :heartpuls CG :heartpuls
    Ever wonder about those people who spend £2 apiece on those little bottles of Evian water? Try spelling Evian backward.
  • medman
    medman Posts: 325 Forumite
    It sounds like it!!

    First thing would be to get a settlement figure on the car loan, and establish what penalty they will take for early settlement.

    Then shop around for a replacement loan at the lowest possible APR and don't pay the PPI!! You should be able to reduce either the time left or the monthly payment with a bit of luck.

    Best wishes

    MM
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