Loan to pay off PCP then Pay off loan

foxy-stoat

humey86 said:

To get the car up to 50% for VT would cost £6k
Why not use for a daily driver?

Errrr I think you should stop buying expensive vehicles in this way.
Your current car is worth £11,000 at a trade in but you need to borrow £13,000 to own it outright to trade it in.  So your £2,000 down on that deal if you go down that road.
To get you to 50%, so you can cleanly hand it back with nothing more to pay, would be £6,000 plus any additional costs.
Now your looking at buying a campervan that you want to use as a daily for £24,000.

If you do decide to carry on then you will need a loan of £13,000 + another loan of £11,000.  Your credit file will show that you have the outstanding balance of £13,000 when you go for the loan for £13,000 and when you try for the £11,000 loan you may have £26,000 of debt on your file before the £11,000 is added.  As long as your annual salary is north of £75,000 and you have no other debts you shouldn't have an issue.

lcc86

WBAC would be able to settle the loan on the PCP as long as you pay them the 2k difference, or you both call the finance company at the same time and pay two payments to fully settle. Check if there's a settlement fee on your agreement too. 

The VW vans really do hold their value, originals are worth a fortune now, even 20 year old ones are easily £8k plus for a good one. Just check you can get finance for that amount before you sell your old car. Also most (although not all) finance agreements are 5 years max so your payments will reflect this.

MalMonroe

Deleted_User said:

You'll pay early settlement charges on both.  Pretty much all loans work the same.

No they don't. I took out a PCP last year and it's no interest and I can pay it back when, and if I like. With no penalties and no settlement charges. They are not always the same and my advice to anyone would always be shop around and don't just get the first one.