Can you usually overpay a loan?

chelseablue

Our lease car goes back to the dealership in March, we don't want to lease again so going to buy a car (not a new one)

We are getting married in June which is taking most of our savings, so for the car we are planning on putting a few thousand as a deposit and getting a personal loan for the remainder (unless car finance is a better way of doing it??)

Anyway, we would want to clear the loan as quickly as possible, do most allow overpayments?

[Deleted User]

Yes. But check for early repayment charges (eg two months interest on the amount repaid).

Shakin_Steve

If you are intending to overpay from the word go, just take the loan over a shorter period.

[Deleted User]

If you are planning on putting down a deposit of "a few thousand" why not buy a car for that a much for cash?

chelseablue

Thank you, I did have a look on Auto Trader for cars up to £3,000.

They were either small hatchbacks or older than we would like. Want a 'family' sized car as when we go away luggage and camping gear for 3 people seems to involve packing up the whole house :rotfl:

This will be my husbands car, I drive an 11 year old Nissan so would prefer something a bit newer as knowing our luck they'd both die at the same time

His current car is a Hyundai i30 that costs £130 a month

System

chelseablue wrote: »

Thank you, I did have a look on Auto Trader for cars up to £3,000.

They were either small hatchbacks or older than we would like. Want a 'family' sized car as when we go away luggage and camping gear for 3 people seems to involve packing up the whole house :rotfl:

Ford Mondeo. Absolutely huge boots, loads of them about, they'll do starship mileage if regularly maintained and because Ford parts and service costs are very low there are plenty with 100k miles on with full main dealer history. They're also cheap as chips because being a repmobile with loads of them about they depreciated very fast - at 2 years old mine was bought for just 1/3 of its new price.

chelseablue

Never thought of Mondeo's to be honest.


Flash future husband originally said "Can we get a BMW 1 series?" But that's a total NO!


Now he's come down to a Volvo

chelseablue

Just another thought, our fixed rate mortgage ends on 31st March and we are looking to move lender.

Is it better to apply for any loan before applying for a new mortgage?

Could apply for the loan soonish and just have it sitting in the bank until we go and buy a car.
Downside is we'd be paying £130 a month for the lease car and approx. £150 a month loan payment