Car Loan Extension???

mini-eggs

I might be answering my own question here, but would appreciate another opinion.

For the past 3 years i've been paying £366 a month car finance. never missed a payment and this september I will have 2 years left to pay and its finished.

Issue is, in 3 months time my wife's maternity leave ends and we have to fund childcare. We've looked into childcare vouchers, got all the tax credits / child benefit all ready and included in our monthly budget but to cover everything its just going to be too tight every month and we dont want to be like that for 2 years.

1) Is it possible to extend the finance agreement? what are the down sides, more interest? any affect on credit rating?

2) Part ex the car, settle finance and the remaining balance (which is around 5k) buy a car outright ....resulting in still having a car, and no monthly payment, this also allows me to keep the health club membership (which we love as a family) and more ££ in my pocket each month

3) Reduce child care costs....but really dont know how to do this any more, we both going to be doing child care vouchers, no family relative / friend is able to helpout like 1 day a week, we've played around with reducing work hours etc but its not adding up.

Now i've written out...option 2 does seem a no brainer

chalkie99

mini-eggs wrote: »

settle finance and the remaining balance (which is around 5k)

Don't understand this bit :huh:

You say you have two years left at £366 per month so you currently owe £8784.

5k sounds too low to be a settlement figure so can you explain what the £5k relates to please?

Also, what sort of finance do you have? e.g. PCP, HP, Personal loan.

mini-eggs

the finance is over 5 years,

if i part ex ...the garage would settle it in full which is 10,256.80, the car is worth about 15k, so the remaining balance will buy the new car