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Paying Car Finance with Personal loan
Ciderarmy1987
Posts: 451 Forumite
in Loans
Hi
Went to test drive a car yesterday. We managed to agree a pretty good deal on the price provided that we took out car finance with Blackhorse and paid a £250 deposit. The price of finance was £8500 and would be £426 per month for 24 months.
Got a bit confused with the difference between fixed rate and APR and have realised that the deal is a pretty crappy deal and we could get a lot better finance with a personal loan.
Basically what are our options now, we would like to still go ahead with the car sale but not with this finance option really.
We havent actually signed any paperwork etc for the finance yet and they said we could get our money back if we didnt agree with it.
Would it be a bad idea to take out this finance deal and then get a personal loan to pay it off it 1-2 months or would we get hit with loads of charges to do this?
Went to test drive a car yesterday. We managed to agree a pretty good deal on the price provided that we took out car finance with Blackhorse and paid a £250 deposit. The price of finance was £8500 and would be £426 per month for 24 months.
Got a bit confused with the difference between fixed rate and APR and have realised that the deal is a pretty crappy deal and we could get a lot better finance with a personal loan.
Basically what are our options now, we would like to still go ahead with the car sale but not with this finance option really.
We havent actually signed any paperwork etc for the finance yet and they said we could get our money back if we didnt agree with it.
Would it be a bad idea to take out this finance deal and then get a personal loan to pay it off it 1-2 months or would we get hit with loads of charges to do this?
Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
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Comments
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You would need to check the T&C's for early redemption penalties but my guess is their will be some kind of penalty. Read the agreement carefully or phone the CS and ask.0
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i dont see the point of having to take out two finance loans for the same car, the other possibility is you could be declined for a personal loan and youd be forced to entertain the high interest for the car dealer.
if nothing has been signed, id personally just get a personal loan out if it works out cheaper ..0 -
If we try to change now though will we lose the deal that we have already agreed, or worse would they be able to pull out of the deal altogether and still keep our deposit?Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030 -
I withdrew within 14 days of the signed agreement been recieved, you just repay the finance company in full no extra fees except daily intrestDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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