Loan Early repayment decision

Jaggerlips

Hey everyone, new to the forum and first post!

I am looking to buy a new car for around £25k and am going to get a loan. I would be able to pay back the whole lot next year and wondered what the best way to do it would be.

If i borrowed £25k over 10 years the monthly payments would be approx.. £300 PCM.
Over 5 years they would be approx. £500 PCM.

Does it make any difference the loan term if you are planning to pay off at the same time (in this case, 12 months time). This may be obvious but I'm all number crunched out trying to decide what to do!

Looking forward to your response.

opinions4u

Jaggerlips wrote: »

Hey everyone, new to the forum and first post!

I am looking to buy a new car for around £25k and am going to get a loan. I would be able to pay back the whole lot next year and wondered what the best way to do it would be.

Why not buy the car next year?

If i borrowed £25k over 10 years the monthly payments would be approx.. £300 PCM.
Over 5 years they would be approx. £500 PCM.

I'd be amazed if you could get a 10 year loan for a car.

Does it make any difference the loan term if you are planning to pay off at the same time (in this case, 12 months time). This may be obvious but I'm all number crunched out trying to decide what to do!

The lender will not take into account any intention to repay the loan early.

stephane_2

Just wait next year then...or buy a car you can actually afford.