New loan?

Gazr

Hi,
I've got a loan that ends in march. 

I've got my car that is on PCP and that ends also in march so I need to take a new loan out to pay for the balloon payment at the end of march.

Do I need to pay the old loan off a month early so that u can apply for a new loan? 

[Deleted User]

It depends on your affordability, but another loan with either one or two existing ones may be a struggle.

TadleyBaggie

Since the amounts owed on the PCP and loan would be relatively low (as they are near the end of their terms) by March, it shouldn't be too much of an issue I would have thought.

DrEskimo

TadleyBaggie said:

Since the amounts owed on the PCP and loan would be relatively low (as they are near the end of their terms) by March, it shouldn't be too much of an issue I would have thought.

That would depend on the GFV. If the car was £40k+ the GFV after 2yrs could be as high as £25k.

Gazr

The balloon payment is £4k for the car.
I owe £440 on my loan so don't know if to pay that off end of Jan and so it's clear for when I apply for a new loan

[Deleted User]

Regardless of getting another loan, if the interest on your loan is more than than your savings rate (taking into account any early redemption fees, you should pay it off.