New car loan

alove

I'm looking at purchasing a newer car. I am currently still repaying a loan from a few years ago and still have around 2 years left of repayments. If I take out a 2nd loan will the interest be higher? Are there any problems with taking out a 2nd loan. I also have a mortgage and was wondering if it was worth adding the loan to the mortgage? Please help

SeanG79

Adding a loan to the mortgage is unlikely a good idea, the rate will be lower potentially, but you will be paying off the amount over an extended period.

You can take out a second loan - subject to affordability, and credit checks.

There is a 3rd option of taking out vehicle finance.

k3lvc

alove wrote: »

I am currently still repaying a loan from a few years ago and still have around 2 years left of repayments.

Is this original loan for buying a car ? If so don't fall too easily into the habit of still paying for an old car whilst you have a shiny new one in significant negative equity (I speak from experience)


Why not lower your car expectations until old loan paid off (easier said than done when shiny new(er) car is within your grasp)

alove

Yes, the original loan was for my wife's car. Now my car needs replacing hence the need for a 2nd loan

k3lvc

OK - not quite the trap I fell into. If the interest rate offered for a new loan is lower then look at taking out a loan that pays off your wifes (but obviously not extending it over the full time period (i.e. higher payments/shorter term than you may have done

foxy-stoat

alove wrote: »

I'm looking at purchasing a newer car. I am currently still repaying a loan from a few years ago and still have around 2 years left of repayments. If I take out a 2nd loan will the interest be higher? Are there any problems with taking out a 2nd loan. I also have a mortgage and was wondering if it was worth adding the loan to the mortgage? Please help

The second loan interest will be based on your current financial situation, without knowing the interest rate on your first loan, and your current finanical details no one will be able to tell if the second loan interest will be higher or lower.

Try your own bank first, then one other lender - never a good idea to pull equity out of your home to buy a car.

Good lucks.