Paying finance off with a loan..

gabyjane

Hi,
Has anyone taken out a loan to pay off their car finance?

BoGoF

Plenty I would think.

Is there a more specific question?

TadleyBaggie

Yes I have.

Scrapit

It's a simple exercise in maths. Rate of loan against time vs rate of finance against time on finance. What ever is cheapest is gonna be best

gabyjane

Thanks, sorry been meaning to ask for a while after a loan letter came from my bank and its far cheaper.. But like you say it's vs time scale of them both which I'm rubbish at working out with interest etc added.. Anyone help if I put figures down please?

foxy-stoat

Bin the letter and keep paying the finance. It will be a "look what we COULD offer you rate" letter, based on a slim set of circumstances.

You would be tick the "paying other debt" box or "debt consolidation" which rarely attracts the lowest rate.

What is your current interest rate, monthly payment and loan term. We can work out how much you will save each month.

forgotmyname

Just because their loans start at a low APR will you get it at that rate or will it be similar to your current deal?

Dont forget to factor in any charges for repaying the current loan early. Been a few that ended up paying more after swapping when they forgot to factor in all the charges.

gabyjane

foxy-stoat wrote: »

Bin the letter and keep paying the finance. It will be a "look what we COULD offer you rate" letter, based on a slim set of circumstances.

You would be tick the "paying other debt" box or "debt consolidation" which rarely attracts the lowest rate.

What is your current interest rate, monthly payment and loan term. We can work out how much you will save each month.

I'm paying just over £10k with motonovo. Can't find the paperwork for the interest but it's over 60 payments of £229 a month.
I'd need to find out if there was a early repayment due and the actual loan amount left

gabyjane

Would anyone be able to help if I listed figures please?

alan_d

gabyjane wrote: »

Would anyone be able to help if I listed figures please?

Yes.






[noise added as forum complained my message was too short!]

Hunter_Jaeger

OP 60 months is a long time for a car loan and your figures suggest a high APR.

If it was me I would try and keep the payments the same but knock a year off the term and that would be possible with an APR rate of around 5%. Even better try and knock 2 years off the term and pay a little more per month..