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two loans at once?

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I need to borrow £20k for a car. I can get one £20k loan at 7.6%apr from Sainsbury's, but if I borrow say £10k their apr would be 5.9%. Tesco charge 6% for a £10k loan. So my question is - why not apply for two £10k loans at once? Anyone know why this may or may not work and whether there would be anything in their T&Cs that would prevent this, or whether it could adversely impact my credit rating? Thanks!
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Comments

  • DevCoder
    DevCoder Posts: 3,361 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 25 June 2012 at 8:52PM
    What happens if you get accepted for one but not the other?

    Then you have two searches on you're record and you'd need to go back to the first acceptance to ask for an increase, which they might refuse.

    Then thats 3 searches. You'd then need to re-credit score for the first acceptance which might now refuse with your new internal scoring.

    A few points

    1) Some people will say 20K for a car on credit is madness, given depreciation, only you can answer this truthfully
    2) You say you can get one loan at 7.6% APR, have you been accepted for this in writing? Or is it just an offer? Or an online quoted rate (which 50% will fail, 40% wont get and 1% will actually achieve?)
  • AHAR
    AHAR Posts: 984 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    if I borrow say £10k their apr would be 5.9%.

    It could be 5.9%, if you're accepted at all that is.
  • I have been accepted for the 20k loan at 7.6%, I have that in writing, I'm just wondering that as loans between 7.5k and 15k seem to attract a lower apr rate why more people wanting to borrow more than 15k don't split the debt between lenders and therefore get a lower rate? But I guess from your answer that is something to do with the number of searches?
    So do more searches = a lower rating?
    thanks
  • DevCoder
    DevCoder Posts: 3,361 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Each lender has their own internal scoring which may or may not take into account other searches, however the majority do as multiple searches indicate that you are desperate and are applying for multiple credit lines.
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Why a 20k loan for a car, seems daft to me
  • 27col
    27col Posts: 6,554 Forumite
    Time it's paid for, you will be lucky if it is worth £10k. Add the depreciation on to the interest and you have bought one hell of an expensive car. Anyway, you don't need a £20k car, you just want one. Not quite the same thing. Before you say it, I know that it's none of my business. You do what you want.
    I can afford anything that I want.
    Just so long as I don't want much.
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
    20K for a car + depreciation and interest cost of £10000+

    Enjoy your expensive time at the wheel!!!
  • bouncydog1
    bouncydog1 Posts: 2,696 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Utter madness. You can't afford a £20k car as you don't have the money to pay for it.

    As others have said, add in the cost of motoring, depreciation and the time it will take to pay off and what will you end up with? Something no-one else will want because it will be old!

    Either buy a car that you have the cash for, or save the loan repayments for a few months and buy something with that - bet your sights will lower when you are spending your own cash!
  • bankhater_1965
    bankhater_1965 Posts: 714 Forumite
    edited 26 June 2012 at 8:55AM
    financail suicide
    and is totaly about keeping up with joneses
  • bouncyd!!! wrote: »
    Utter madness. You can't afford a £20k car as you don't have the money to pay for it.

    As others have said, add in the cost of motoring, depreciation and the time it will take to pay off and what will you end up with? Something no-one else will want because it will be old!

    Either buy a car that you have the cash for, or save the loan repayments for a few months and buy something with that - bet your sights will lower when you are spending your own cash!

    they dont do such utter nonsense on here , its all about loans, credit cards, overdrafts , not one thread regards to putting a few coppers away for such a purchase
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