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Loan for Car

pollyanna24
pollyanna24 Posts: 4,375 Forumite
Part of the Furniture 1,000 Posts Name Dropper
I'm new to the world of loans, and would do my best to aviod one because we are almost debt free after a long hard slog.

However, our VR6 car drinks petrol like no tomorrow, and is on its way out, so bf has pointed out that he wants a newish one to replace it. What is the best way to go about this? I think (although I could be wrong) that hire purchase is the worse way to go as they charge extortionate rates.

Should I just get a loan from the bank that we have our mortgage with (but not a secured loan)? It's for about £5,000 and we should have no bad credit against our name.
Pink Sproglettes born 2008 and 2010
Mortgages (End 2017) - £180,235.03
(End 2021) - £131,215.25 DID IT!!!
(End 2022) - Target £116,213.81

Comments

  • rorton
    rorton Posts: 19 Forumite
    i took a loan out with Northern Rock. Standard unsecured load with a low interest rate (5.5% i think)

    My bank still had a rather large interest rate, so id advise that you have a shop around (try https://www.moneysupermarket.com) and compare are the loans on offer.

    I'd stay away from HP or and PCP type schemes
  • pollyanna24
    pollyanna24 Posts: 4,375 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thank you very much. I don't know what PCP is, but I shall have a look at the money market website.
    Pink Sproglettes born 2008 and 2010
    Mortgages (End 2017) - £180,235.03
    (End 2021) - £131,215.25 DID IT!!!
    (End 2022) - Target £116,213.81
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