Short Term Loan

bishops0411

The finance on my wife's car is coming to an end in a couple of months, so we need to start thinking about our options. As the balloon payment is around £8,000 and the car has been valued at approx. £12k, we're looking to make the payment and sell the car privately, pocketing the remaining cash. However, sadly we don't have £8k to spare to cover the balloon payment.


I've been looking in to short-term loans. The problem is that the only ones I've been able to find are either a minimum of £50k-odd and up (based on lending for a new house purchase), or they're for a minimum of 12 months.


Can anyone offer any advice?


Thanks in advance.

[Deleted User]

Get a regular loan and repay it early.

DCFC79

bishops0411 wrote: »

The finance on my wife's car is coming to an end in a couple of months, so we need to start thinking about our options. As the balloon payment is around £8,000 and the car has been valued at approx. £12k, we're looking to make the payment and sell the car privately, pocketing the remaining cash. However, sadly we don't have £8k to spare to cover the balloon payment.


I've been looking in to short-term loans. The problem is that the only ones I've been able to find are either a minimum of £50k-odd and up (based on lending for a new house purchase), or they're for a minimum of 12 months.


Can anyone offer any advice?


Thanks in advance.

Its not a short term loan you need.

A loan for the £8k would surely be what you need.
Now whether you can get a loan at a decent/advertised rate is another question.

System

Get conventional loan for £8k, sell car, settle loan within the 14 day cooling off period.

Clive_Woody

As mentioned, just use the eligibility calculator to see who might lend you £8000 then go with them.

Choose a repayment period that allows you repayments that you are comfortable while you are selling the car.

Once the car is sold repay the loan and pocket the left over cash.

phillw

bishops0411 wrote: »

As the balloon payment is around £8,000 and the car has been valued at approx. £12k, we're looking to make the payment and sell the car privately, pocketing the remaining cash.

Am I the only person who thinks that you should just keep the car?

I hate the idea of buying a new car on PCP, you get a monthly reminder on your bank statement telling you exactly how much your car is depreciating by.

System

phillw wrote: »

Am I the only person who thinks that you should just keep the car?

You're not but I've given up trying to educate people who seem hell bent on finding ways to set fire to as much money as possible in the shortest amount of time for something.

Ergates

phillw wrote: »

Am I the only person who thinks that you should just keep the car?

Maybe they don't need it any more

Nasqueron

phillw wrote: »

Am I the only person who thinks that you should just keep the car?

I hate the idea of buying a new car on PCP, you get a monthly reminder on your bank statement telling you exactly how much your car is depreciating by.

No, I did this and kept the car. Fortunately depreciation (as a "cost") doesn't exist if you intend to keep the car and run it until it breaks so a 0% PCP deal worked very well for me.

Craig1981

you can apply for a loan with a good APR (if you are eligible), and repay it in full when you sell the car.

you will pay upto 56 days interest on early resettlement, so APR amount will play a role

AnotherJoe

I think someone like we buy any car will do this as a single transaction pay off the finance and pay you the difference. Worth checking. Not suggesting wbac specifically and yes these companies will pay less than private but otoh none of the hassle with private sales.