Car loan

kirsteenkiki

Hello everyone looking for a bit of advise as I have never done this before! I am looking to take a bank loan out for £9,200 to buy my car! First question is does it have to be for that exact amount for the car or could I just round it up and take £10,000 (which I would ideally like it to be as it would help me out with a few things)  and secondly if my final balloon payment is due on 5th if May when would I apply to take this loan out? Is it too early at moment? I  Wasn’t sure how it would work with paying my monthly car payment and paying the loan back if I took it out too soon! Hope this all makes sense and thank you in advance 
 (edit)  it is the car that I am currently paying monthly that I wish to take the loan out for if that makes any difference thanks 

[Deleted User]

It can be for more, but the higher the amount, the higher the chance of a decline.

If you already have car finance, you're going to need to have a very good income to support the additional borrowing.

DrEskimo

You don't need to wait till the 5th May. You can settle the loan whenever you please. Ask for a settlement figure to see the exact amount.

As above, the rate and amount you will be accepted for will take into account your current car finance though. 

MEM62

kirsteenkiki said:

Hello everyone  

Hello!  :-)

kirsteenkiki said:

Looking for a bit of advise  

OK

kirsteenkiki said:

I am looking to take a bank loan out for £9,200 to buy my first car!  

Oh, that's easy.  Don't!  
Taking a £9K debt to buy an asset with a value that falls like a stone is far from financial prudence.  Save and buy what you can afford with cash.  Your future self with thank you for it.       

Emmia

As it's your first car, have you looked at the cost of insurance etc.? I honestly wouldn't spend £9k on your first car - I'd get something much cheaper that you'll learn to properly drive in, bought for cash ideally. 

My first car cost just over £1k and was a great little motor (Ford Fiesta 1.3...) taking me on loads of adventures - insurance in my first year was £600 fully comp.

Ganga

I think it is to pay the balloon payment for the car they all ready have. 

DCFC79

My advice (you did ask for it) is to buy one for £4k, i woukdnt take out a £10k loan for a car.
Youd costs
Insurance for a new driver and breakdown cover whether from same insurer or another provider
Petrol
Save £40 for MOT and some for a service and things lkke tyres.

macman

OP is wanting to buy their current car at the end of a PCP, see first post...

maxsteam

Haha. This may turn into a bidding war. My advice would be to spend time researching how to inspect and buy a car, then spend £1k cash on the car. If you are wanting an extra £800 to help pay the bills, then this is not the time to be taking on a big debt. If you buy a car for cash, it's all done. The car is yours to do with as you please. If you lost your job, you could choose to sell it or keep it. If you lost your job while driving a financed car, you could lose the car and still be expected to make the payments each month.