Don't want the money immediately

thismustbeme

Hi,

I need to apply for a loan but I don't want the money immediately.

Do companies normally allow you to choose when you receive the money?

The money is for a car which will replace my existing company car (opting out of the scheme), but as the loan will be financed through a car allowance, I want to avoid getting the money too early as the allowance will start a month after the existing car goes back.

On a slightly different subject, what's the best company to get a loan from? I'm a little put off by M&S after reading various negative comments on here about rates.

I'm borrowing 15K. Also a homeowner with lots of equity and don't owe anyone anything. So I'm assuming I shouldn't have a problem getting the lowest rate advertised?

All help and feedback appreciated.

[Deleted User]

depends what your existing credits like,how much avaliable on cc`s etc?how much owing on same?any missed payments in last 6 years?or simlar problems?
most loans take about 2 weeks to sort(some faster),and of course only 51% of applicants get the low advertised rates,everybody else pays more
lastly of course do you really need to pay 15k for a car?

thismustbeme

woodbine wrote: »

depends what your existing credits like,how much avaliable on cc`s etc?how much owing on same?any missed payments in last 6 years?or simlar problems?
most loans take about 2 weeks to sort(some faster),and of course only 51% of applicants get the low advertised rates,everybody else pays more
lastly of course do you really need to pay 15k for a car?

10K available on one credit card and 2K on another (second card is used by my wife but in my name). Pay full amount each month on both and never missed any payments.

Closed four other cards two months ago to avoid having too much credit available.

Don't 'need' to spend 15K but want to as I can afford it and it's effectively financed through the company.

Can you choose when you receive the money though?

chanz4

Payments are due 1 month after anyway, so shouldnt be an issue

thismustbeme

chanz4 wrote: »

Payments are due 1 month after anyway, so shouldnt be an issue

The problem I have is that I currently have a company car and next month I will swap to an allowance.

To avoid paying for the new car myself, I want to get the loan as close to the return date of the current car as possible.

Ideally I would want the money a couple of days before I return the existing car. That way, the first payment from my work will coincide with the first loan payment.

LovelyLeeds

I'd have thought your HR department could easily answer this for you with a good degree of accuracy rather than hoping that someone here can answer your question.

thismustbeme

LovelyLeeds wrote: »

I'd have thought your HR department could easily answer this for you with a good degree of accuracy rather than hoping that someone here can answer your question.

Sorry, not following you? Not sure what the loan has to do with the company HR department. They will simply start paying me the allowance one month after I hand the car back.

What I'm trying to work out is, how flexible a 'typical' loan company will be with the start date for a loan? i.e. when I apply can I choose the date I receive the money or will I automatically receive it once it's approved?

LovelyLeeds

My bad. I just thought that your HR or whoever deals with Company Cars/Allowances would have that sort of advice ready, as they would have been asked it before by previous employees?

[Deleted User]

tbh would it kill you to have one payment overlap?

thismustbeme

woodbine wrote: »

tbh would it kill you to have one payment overlap?

Not really, but if I can save a couple of hundred pound, I really want to try! Never been the type of person to give money away for no reason.

Seems odd that you can't choose when you want the money?

Oh well. Back to my other question then. M&S seems to be the lowest APR at 6%, but also a lot of people seem to get much higher quotes. Tesco and Sainsbury's seem ok at only slightly higher APR. All I'm after is a hassle free application.

Doesn't help that the car I'm buying must be paid for by the end of the month, so delays in getting the finance wont help.

YorkshireBoy

thismustbeme wrote: »

Not really, but if I can save a couple of hundred pound, I really want to try!

How will you "save" money?

If you start to repay one month early your final payment will be one month early too won't it?

Therefore the cost to you is the loss of a months savings account interest now...which will then be recovered at the end of the loan period.

Unless I'm missing something very obvious?

But to answer your original question, why not ring a couple of loan providers up and ask them the question on deferment/agreement in principle (with a guarantee!).