Refinance car finance

golfgtd

Hello,

I recently took out car credit for a new car (£20,000 @ 9.9% APR)

My intention was to take the finance from the dealer as they threw in free servicing etc and then refinance the loan with a bank at a much lower interest rate such as Sainsbury's Bank at 3.3% APR. I have had £15,000 loan from them for my previous car and over paid every month and cleared it in less than half of the three year term.

Sadly I have had three bank loans declined as technically I am not obliged to pay off the existing car credit with the new loan and could potentially end up with two £20,000 loans totalling £40,000. I see their point entirely.

Does anyone know of any companies/banks that clear your car credit for you so I can avoid the above situation.

:-)

Candyapple

golfgtd wrote: »

Does anyone know of any companies/banks that clear your car credit for you so I can avoid the above situation.

Yes..........the bank of Pay It Yourself.

As you've found out no-one is going to lend you another £20k on top of the £20k you've just taken out, so you're going to have to do things the old fashioned way of:

1. Work overtime or get a better paid job
2. Decrease your outgoings and use this money to pay off in addition to your current car payments

k3lvc

Only way I've solved this previously was via car loan offered by my company - I can buy under manufacturers deal to get servicing/warranty etc and then borrow settlement figure from my employer at base rate +0.25% to settle

Does your employer offer a similar, non credit-checked, solution

Mogley

Money Transfer Credit card(s) at 0% interest (fees apply) maybe an option to overpay some of the debt at a lower credit interest rate. However I doubt the credit limits offered would pay off the car finance in full and it will likely be over a shorter time than the car finance. Work out the numbers with this option and see if it works for you.


Otherwise suck it up and take Candyapple's points on board.