Loan Options for personal finance on 20k

5uki

I have been looking around for the cheapest options on a loan for a car costing 30k


I have 10k and would need to borrow 20k options below

1. Option 1 'PCP' car finance loan would result in 6k deposit, monthly payments of £388 x 60 Months with a 9k Balloon payment at the end Totalling £38,280 (£6K + £23,280 + £9k) over five years

2. Option 2 personal bank loan 8% APR for 20k over five years would amount up to £416 x 60 months totalling £24,960 over five years

3. Option 3 Taking a personal bank loan for 10k from one provider and another 10k loan from a second provider at the same APR rate of 6.2% totalling £189 x 60 months for 10k and then adding these two up for a 20k loan would be £378 x 60 months = £22,680

So far option 3 seems the cheapest, but not sure if this could cause any implications in the long run but the interest occurred is the lowest and think this could be the one…


Option 2 seems ok but would prefer to get a cheaper APR rate close to the 6.2%[FONT=&quot] (or cheaper) [/FONT] I’ve been quoted for a 10k quote.


Options 1 is appealing as I’m only putting a 6k deposit down, but think it’s a con as interest pay-back is way too high, I won’t own the car until the balloon payment is paid off at the end of the term…

Anyone got any better suggestions, cheaper APR rates etc..

meer53

My suggestion would be to buy a car for 10k. Is there a reason why you need to spend 30k on a car ?

KingElvis

meer53 wrote: »

My suggestion would be to buy a car for 10k. Is there a reason why you need to spend 30k on a car ?

I would buy a car for 10k and then buy the go faster stripes from Halfords at a fraction of the cost...I would then save 20k

rs65

I like PCP but view it as paying every month to use a car - almost like a long term rental. I plan to change it every 3 years and never own one.

If you were to go down the PCP route with a viewing to owning it then you could pay £10k up front and therefore finance less and pay less interest. Or perhaps shorten the term.

If you are going to finance the balloon payment you will need to factor extra interest into your calculation.

Could you take additional borrowing through your mortgage (but repay over 60 months)?

[Deleted User]

£30k for a car?my 1st two homes didnt cost that combined,spend the 10k you have on a decent car and save yourself 5 years of misery

somethingcorporate

It won't make you more attractive to the opposite sex!

Save yourself the hassle and get a cheaper car. You should consider the lost money on depreciation as well as interest payments. You'll lose tens of thousands before it is even paid off.

NeverEnough

*Yawn* Yet another load of know-it-alls jumping in to tell an OP what they should and should not be spending their money on -

The OP is asking about finance options on a 30K car, not your opinions as to whether he/she "needs" a car of 10K or any other figure you care to name - that was not the question and is not anyone elses' business other than the OP - he has asked a question, if you want to answer the question do so, otherwise keep your opinionated comments as to his/her lifestyle choices to yourselves!!!!

OP, personally, I'd do the deposit plus single personal loan option as I'm not a fan of PCP, but it depends on how you view the car and your intentions as to long-term ownership or whether having newer cars more frequently is more important, as to whether PCP makes sense or not in your case.

Sorry about those with nothing better to do but make opinionated comments about what value of car you should drive - ignore the timewasters.

StuTheDon

Totally agree with NeverEnough. I'm sure you've thought it through - it is your business.

Just be careful with PCP - they sometimes have a limit of the size of deposit you can put down. I would also go with the deposit and one loan - applying for 2 loans at the same time might throw up some credit scoring issues. Also, you will need to have a salary of £40k, with no other debt, to be in a position to borrow that unsecured.

Good luck

BitterAndTwisted

I cannot conceive of why someone would want to buy a car for THIRTY THOUSAND POUNDS never mind borrow two-thirds to do it. Mental.

bobajob_1966

NeverEnough wrote: »

*Yawn* Yet another load of know-it-alls jumping in to tell an OP what they should and should not be spending their money on -

It's not their money though, is it?

DCFC79

BitterAndTwisted wrote: »

I cannot conceive of why someone would want to buy a car for THIRTY THOUSAND POUNDS never mind borrow two-thirds to do it. Mental.

thats alot for a 10k loan and a lot for a car,

OP its your choice what you do but its alot of money, why so much on a car ?