Am I better off by changing ?

Beaker181004

Bear with me on this. I've done the numbers in my head, but can someone else have a think and play with the following scenario :

I have two loans :

Tesco

Outstanding amount to pay is £2674 (if I pay monthly until the end of term)
Settlement Fee is £2659
6 payments to go
Int Rate is 7.11%

Car Loan

Outstanding amount to pay is £7258
Settlement Fee is £6233
35 payments to go
Int Rate is 10.5%

I am looking at getting a new loan, with Tesco and they have quoted me :

£10000 Loan (it'll be about £10,941 with interest)
36 months
£303.80 per month
6.1%

Now I had hoped I could just get a new loan to pay off the car loan (10.5%) and just reduce the interest amount by using the new Tesco loan (6.1%), and saving myself a few hundred quid. But Tesco say, I need to pay off the old Tesco loan and then start off the new Tesco loan

Will I better off sticking with the circumstances I already have or switching ?

Thanks

Beaker181004

Vikipollard

I have NO expertise in this field at all, but is there any reason why Tesco will not just take out the £2659 directly from the £10000 at source to close the first one using the other?

In the dark ol' days when I had any form of borrowing available to me I thought that's what my bank did, but perhaps it's different with non-banks.

Sorry I can't be any use whatsoever....just seems there's a question to answer

Beaker181004

Sorry, what you've said is what they'd do

I only want 6500 but the interest rate is 8.3%, so then decided to look for £7500 which would be at 6.1%

BUT they say I need to close off the old loan of £2600 with them, thus the reason for potentially getting a loan for £10100'ish (7500 +2600). Thats why I am not too sure if I'm better off sticking as I am. I think I would save just about £60 IF I change.

Thanks

Terry