should i get a loan to make car finance cheaper

suzi1981

Hi all, first timer on here!! I have car finance, which i have had now for a year and a half.It is over 4 years. But i was thinking of getting a loan to pay this off so i could lower the payments per month. I would be taking it out over 5 years. Is this a good idea or should i keep it as it is. I can manage the payments now but would be really good if i could free up some money.

[Deleted User]

It is a good idea if you can pay less interest. It's not so good if you're planning to extend the term.

The problem, of course, if whether you can get another loan on top of what you have. If you're finding yourself short of cash, it's a good bet you'll be declined.

Nebulous2

It's probably not a good idea. Will your car last 5 years? Otherwise you could end up paying for a car you no longer have, or no longer can use.

Where it could be a good idea is if you can get a lower interest rate on a new loan. However I would try to match the same term - so possibly 3 years rather than 5.

foxy-stoat

If you can get a long over 2 years then do it, otherwise keep it as you are.