Very short term loan

DevDependency

Hi, we're due to get an inheritance in the next couple of months and really need to replace the family car as it's on it's last legs.  Unfortunately the car may not last until we get the money. Looking at the cheap loans we could get a £10,000 loan and the interest would be £150, so would we be able to get the loan and simply pay the whole thing off plus interest when we get the inheritance by September?  We can afford a few months repayments.

Or any other suggestions would be welcome.

To answer a couple of things that might be asked, I understand that we could just put the loan money aside and have the repayments come out of that, would just like to pay it off early if possible.  We could afford a cheap car now, but would rather get something newer/lower miles that will hopefully last a few years and don't want the hassle of buying cheap now to only try and sell again in 2/3 months.  Additionally we could get a car on finance but even with the loan interest I feel this would be a more cost effective way to go.  The inheritance is a decent amount more than we need for the car so there are no worries that it will come through as less than the loan.

[Deleted User]

You can settle the loan early and save on future interest.

Bear in mind that the inheritance may not come through as quickly as planned.

[Deleted User]

Why not just keep it going and see? Assuming it's not an MOT failure that will cost a fortune to get legal anyway. You will be surprised how little you can use a car if you put your mind to it - public transport, bike, walk, even taxis may work out cheaper than a loan until you get the inheritance.

Remember though as zx81 says, inheritances can take time, the estate might have debts you don't know about, there might be will dispute etc

Also remember only 51% of successful applicants need to get the advertised rate of the loan, you might end up with something more expensive

DrEskimo

Why are you so sure the current car won't last?

Keep it going and then cross the bridge of a loan when you come to it. Nothing wrong with settling early, just keep in mind that your rate will depend on your personal information and credit history, and that early repayment may involve extra months interest as a fee.

If possible, just avoid altogether. No sense in donating a few hundred quid to a finance company if you can avoid it. They make enough money....