Best option to get rid of a high APR car loan

B0B

Stupidly, or rather desperately I had to get a car on finance from dealer ship that accepted anybody. I had already tried the £500 cheap car option which cost me another £500 in 6 months then totally died, so needed something newer and reliable.

Had no other option as I had 3 defaults on my account.

This was 2 years ago and the default and debt is now gone.

The APR is 49% APR, so out of the £141 I pay each month only £90 is off the actual balance.

It is currently £3600, but the actual setelment number is closer to £2400 from my calculations off the last time I called them.

So I have around 24/25 months left to pay.

Car is worth around £1400 MAX, so I want to clear the loan for the interest saved and to change it for something newer.

Affordability is not an problem, and my credit file looks decent now, no defaults or other debts apart from this loan and my mobile phone.

Looking round loans seem to be around 13% ish for a £2300 / £2500 loan.

Ideally I would like clear it as quickly as possible, so a 12 month load would be ideal.

What are my options or your suggestions ?

foxy-stoat

Barclaycard or Virgin Credit cards offer a super balance transfer, you could try that for 12 months.

glentoran99

try zopa.com

ricardinho88

If your credit report has improved, you might be able to refinance the vehicle with another provider for a lower interest rate.

bearcat16

B0B wrote: »

Looking round loans seem to be around 13% ish for a £2300 / £2500 loan.

Ideally I would like clear it as quickly as possible, so a 12 month load would be ideal.

What are my options or your suggestions ?

You may find you get a better interest rate by borrowing more. £7,500 seems to be a threshold. You can take out a loan with a higher amount, then simply make an overpayment of the extra funds that you don't need.