Loan For Car, info

polo-mk3

Hi

Sorry if this has been coved before but i need to ask before i do anything.

Im looking at buying a second hand car that costs about £1500.

But with high intrest rates on low amounts i was looking a getting a £7000 loan at 8.8% at 48 months of £172.56.

So if i was to pay back the £5500 right away would the intrest rate keep and would the repayments drop?

I have a CC i could take the money out of but would they let me at the bank take that amount out over the counter?

If not any good ideas?

Thanks

LovelyLeeds

polo-mk3 wrote: »

But with high intrest rates on low amounts i was looking a getting a £7000 loan at 8.8% at 48 months of £172.56.

Have you actually been quoted this rate or is it representative?

So if i was to pay back the £5500 right away would the intrest rate keep and would the repayments drop?

Nice try - no!

I have a CC i could take the money out of but would they let me at the bank take that amount out over the counter?

You would incur interest at the highest rate of the card from day one of taking this out - so you will need to work that out.

polo-mk3

LovelyLeeds wrote: »

Have you actually been quoted this rate or is it representative?

Thats what my online back account says. would be one click away.

I do have a house with them like. :j

LovelyLeeds wrote: »

Nice try - no!.

thats crap though they would be abit like CC's and the more you pay off the less the repayments.

so the intrest rate would still be 8.8% but the repayments would be £172.56?

How would that work though? as i would have paid back part so no intrest (only intrest on it for the first few days/month)

LovelyLeeds wrote: »

You would incur interest at the highest rate of the card from day one of taking this out - so you will need to work that out.

Ah ok, i do have a few more CC with nowt on them but its getting the cash off them.

CLAPTON

polo-mk3 wrote: »

Hi

Sorry if this has been coved before but i need to ask before i do anything.

Im looking at buying a second hand car that costs about £1500.

But with high intrest rates on low amounts i was looking a getting a £7000 loan at 8.8% at 48 months of £172.56.

So if i was to pay back the £5500 right away would the intrest rate keep and would the repayments drop?

I have a CC i could take the money out of but would they let me at the bank take that amount out over the counter?

If not any good ideas?

Thanks

a lot depends upon how quickly you can repay.

can you use a CC to pay for the car directly?

if you get a loan then yes, you can repay a large amount but it doesn't normally reduce the monthly payment but obviously reduces the preiod of the loan (you can of course retain some of the loan to help make the monthly repayments although this will mean a little extra interest)

LovelyLeeds

polo-mk3 wrote: »

Thats what my online back account says. would be one click away.

I do have a house with them like. :j

If you make that dreaded click, please make absolutely sure that 8.8% is the rate you will get, read the T&Cs.

thats crap though they would be abit like CC's and the more you pay off the less the repayments.

The loan amount and the loan rate is factored. Again, read the T&Cs regarding early payments/redemption etc.

Ah ok, i do have a few more CC with nowt on them but its getting the cash off them.

I'm not clued up on balance transfer cards and the like, so someone else might be able to offer a solution to release the credit.

PedroMatias

polo-mk3 wrote: »

Hi

Sorry if this has been coved before but i need to ask before i do anything.

Im looking at buying a second hand car that costs about £1500.

But with high intrest rates on low amounts i was looking a getting a £7000 loan at 8.8% at 48 months of £172.56.

So if i was to pay back the £5500 right away would the intrest rate keep and would the repayments drop?

I have a CC i could take the money out of but would they let me at the bank take that amount out over the counter?

If not any good ideas?

Thanks

Most loans, while allowing overpayments, won't reduce the total amount due (capital + interest) unless you settle in full.

So in other words, although they might let you pay back £5,500 as an initial overpayment, you'll still be paying interest on the full amount until you settle in full. That'll make the effective APR far more than you'd get for a smaller loan.

Make sense?

polo-mk3

CLAPTON wrote: »

can you use a CC to pay for the car directly?

Wish i could but its a private buy

CLAPTON wrote: »

if you get a loan then yes, you can repay a large amount but it doesn't normally reduce the monthly payment but obviously reduces the preiod of the loan (you can of course retain some of the loan to help make the monthly repayments although this will mean a little extra interest)

Mmmmmm ok

polo-mk3

LovelyLeeds wrote: »

If you make that dreaded click, please make absolutely sure that 8.8% is the rate you will get, read the T&Cs.

Thats what it said, it didnt look like one of them loan calculator that say one thing and give another.

I had to login and everything.

LovelyLeeds wrote: »

The loan amount and the loan rate is factored. Again, read the T&Cs regarding early payments/redemption etc.

Will have a look

LovelyLeeds wrote: »

I'm not clued up on balance transfer cards and the like, so someone else might be able to offer a solution to release the credit.

Card transfer is one option if i can to my debit card.

CLAPTON

PedroMatias wrote: »

Most loans, while allowing overpayments, won't reduce the total amount due (capital + interest) unless you settle in full.

So in other words, although they might let you pay back £5,500 as an initial overpayment, you'll still be paying interest on the full amount until you settle in full. That'll make the effective APR far more than you'd get for a smaller loan.

Make sense?

no this makes absolutely no sense;

if you make an overpayment it will reduce the capital amount owing and so will reduce the interest charged;

normally however, the monthly payment will remain unchanged although of course the loan will end a lot earlier.

WaxiesDargle

Just been on the Halifax site and for a 7 grand loan over 48 months it is 7.8% and that is £169.51 per month.

It does allow for early repayment but says you may have to pay up to 56 days interest back

Daniel_Joves

What is the premium that you are providing against your loan.?