loan for a car

beedmcfc

1st post so hope this makes sense!

I'm thinking of buying a car but instead of using the generous 12/13% apr offered by the car company, i want to borrow at a cheaper rate (obv).

I'm only gonna borrow 5k but want to know if there's any loan companies where you can make over payments but without the penalties??

i want to take the loan out for 2 years but would like to pay it off within 6-9 months - i can normally make overpayments due to my overtime but if the overtime gets knocked off, i've got my normal monthly payments which i could meet without the overtime

if that makes sense, any help would be appreciated, cheers :beer:

Redbedhead

Nationwide allows early repayment of loans without charges, but I don't think it allows overpayments. Maybe you could put the overpayment in a savings account until it matches the outstanding balance on the loan then pay it off?

beedmcfc

i have an account with nationwide so i'll check it out, cheers red!!

susanjfp

Another option is zopa where you can repay early at no penalty and depending on your credit rating could potentially get an APR of less than 6.5% on 24 months loan for £5000 based on the latest lending offers in the market.

I have attached link below where by if anyone does take loan from them they get £30 plus if you do i will send £15 to one of Martin's charities.

www.zopa.com/member/ligaya

or without the £30 www.zopa.com

They tend to be quite hot on the credit ratings side so not much good for those with poor credit ratings but can be very good for those with good credit ratings as a number of members choose to lend at below base rates for their own peculiar reasons.

daviduk_2

Thanks for the information as never heard of them before but been quoted £3000 @5.46%. Anyone know of any others that may be even cheaper?

susanjfp

If you do use them through the link david and complete the loan can you advise so i can send the cheque to charity.

daviduk_2

Just completed and ended up at 5.7% so wish i had taken the first offer which was slightly cheaper. Strange to think i could put it in cash isa @6.3% and make a profit on other peoples money. Oh yes just like banks do!!!!

susanjfp

Just sent £15 off to the cancer charity as the money been paid by zopa. So look like everyones a winner as you got cheap rate daviduk and charity benefits too.

See Zopa are stopping the £30 offer in September.