Cheapest way to borrow £2K?

alstemp

Hi there

I am planning to purchase a used car and budgeting £10K for it. I have £8K ready to spend and want to borrow the remaining £2K. Ideally want to be able to offer the dealer/seller £10K in cash and get best deal for a £10,750/£11K car.

I was thinking of getting the £2K as a standard personal loan from Tesco or similar with low interest rate. I would want to pay this off over 6 months.

I jsut wanted to check amongst the gurus at Moneysaving - is this the cheapest way of borrowing this amount? Rather than extending overdraft or credit card or any other means for example?

Any feedback gratefully received

many thanks

Bantex_2

alstemp wrote: »

Hi there

I am planning to purchase a used car and budgeting £10K for it. I have £8K ready to spend and want to borrow the remaining £2K. Ideally want to be able to offer the dealer/seller £10K in cash and get best deal for a £10,750/£11K car.

I was thinking of getting the £2K as a standard personal loan from Tesco or similar with low interest rate. I would want to pay this off over 6 months.

I jsut wanted to check amongst the gurus at Moneysaving - is this the cheapest way of borrowing this amount? Rather than extending overdraft or credit card or any other means for example?

Any feedback gratefully received

many thanks

Most dealers will give you a better deal for a non cash purchase.

Cornucopia

If this is a future purchase (say 3 months away), use a 0% on purchases card to put all your day-to-day spending on, and keep the money you would have spent towards your £2K. You may not make the full amount, but it can be topped up cheaply or at zero cost using one of the tips above.

Many dealers will take £1k on a credit card without a fee. So the two combined could do the job.

iolanthe07

Ideally want to be able to offer the dealer/seller £10K in cash and get best deal for a £10,750/£11K car.

You don't often get the best deal by paying cash. This may seem counter intuitive, but dealers make much of their profit through selling finance, and that is where the best deals are to be had - though, of course, you pay a lot more in the long run because of the interest you pay.

Sedge123

How about buy a car for 8k? Then you don't need to borrow anything...

Clive_Woody

Sedge123 wrote: »

How about buy a car for 8k? Then you don't need to borrow anything...

I can't believe we managed to get post #7 before this was mentioned.

I am going to report you all to the moderators!!!!:money:

bigadaj

Sedge123 wrote: »

How about buy a car for 8k? Then you don't need to borrow anything...

.....or a 6k car and have two grand of savings left or.......

[Deleted User]

bigadaj wrote: »

.....or a 6k car and have two grand of savings left or.......

A bike?

DCFC79

Moneyineptitude wrote: »

A bike?

A moped, a pushbike ?

bigadaj

DCFC79 wrote: »

A moped, a pushbike ?

Well the ultimate machine in my experience is a pensioner on a Mobility scooter, they seem to be doing over 30mph on the pavements round our way!

Asiacat

11k cars do not get you anywhere faster than a 3k car. I learnt that in my twenties.

Even for 5 or 6k you can get a decent low mileage motor which will be cheaper to insure, won't be a much a magnet for thieves and three years down the line the depreciation will be a lot less than an 11k car.

If you have 8k ready you would be an idiot to spend more than that on a motor.