2 smaller loans for better rates?

jamieparr37

Hi
I am looking to buy a new car and have been on the comparison sites looking at loans and have found that (lenders allowing) taking out two £10k loans would work out a lot cheaper than one £20k loan. Is this something that can be done?

Thanks in advance

Jamie

[Deleted User]

It can. But you run a serious risk that assuming you are accepted for the first, your chance of getting the second are probably diminished.

DCFC79

jamieparr37 wrote: »

Hi
I am looking to buy a new car and have been on the comparison sites looking at loans and have found that (lenders allowing) taking out two £10k loans would work out a lot cheaper than one £20k loan. Is this something that can be done?

Thanks in advance

Jamie

Thats an insane plan for a 20k car, so many variables involved. As zx81 says you run the risk of getting the first 1 but not the second as you have lessend your chances your chances of getting the second 1.

Depends on your salary and other debts eg debt to salary ratio.

KingElvis

Daft as a box of rocks but I say go for it, if you fail to get the second loan you could ask them to saw it in two and buy which half the car you prefer.

pheonixrising21

wow, no-one has yet told the OP that £20k+ for a car is too much and to buy a cheaper one, or save for it! Someone is slipping!

All jokes aside, does the car dealership not offer decent finance? Usually they offer competitive rates and can afford to as their finance is secured on the car.

As people have said, the two loan idea is a bad one as you might end up with only one loan, not enough to buy the car and you will then have to either buy a cheaper car with the one loan you get or settle the first loan which will probably cost you two month's interest...