want to change car finance

BigDavesurf

Hello all I got car finance from Oodle last year as I had an outstanding ccj and a credit card default and that seemed to be my only option. Since then the CCJ has gone and everything is clear I have a credit card that I clear every month and my credit score with all three agencies is good. What I'm getting at is I want to borrow from a cheaper lender to save myself £3k in interest and reduce the term by a few months.I've not yet applied anywhere but done eligibility checks but all have come back either more expensive or no cheaper. What do I do?

[Deleted User]

Make overpayments to your existing loan.

Lenders will assess you as having both loans so whether you get another loan or not, paying off the current one is the smart thing to do  

BigDavesurf

That was the idea of the second loan to pay the first one off, oodle won't let me overpay as such but will accept lump payments of not less than £1000 at a time they're not very flexible. The loan shows on my credit file as the total outstanding including interest don't know if that's normal but it looks like I owe £18k but the settlement figure is £13k.

[Deleted User]

BigDavesurf said:

That was the idea of the second loan to pay the first one off, oodle won't let me overpay as such but will accept lump payments of not less than £1000 at a time they're not very flexible. The loan shows on my credit file as the total outstanding including interest don't know if that's normal but it looks like I owe £18k but the settlement figure is £13k.

The idea is fine but lenders don't know if you'll pay off the loan or stick if all on a nag at the 3:30 at Kempton so they have to judge you as having both loans together and if that is affordable

The 18k is if you paid the loan over the full term, it won't show the settlement figure as you might not pay it, thus it would give a false indication of your debt.

BigDavesurf

Stuck with it then? Never again that's all I can say. Thanks for your help.

[Deleted User]

Ignoring your fictitious credit score, why not try for a money transfer card, if the fee is low enough and you can get a couple of thousand into your account, would at least satisfy their overpayment requirements and reduce a bit

BigDavesurf

I have a couple of grand saved but don't really want to use it as was hoping to get a mortgage and need the deposit. that isn't looking likely either! Divorced,52 living back at the parents at least the car is the only debt now.

Ebe_Scrooge

BigDavesurf said:

Stuck with it then? Never again that's all I can say.

This is going to sound really harsh, but ......

BigDavesurf said:

I had an outstanding ccj and a credit card default and that seemed to be my only option.

... spending 18 grand on a car when you have obviously been in financial difficulty in recent times was not your only option.  The sensible option would have been to buy a cheap runabout (or even a reasonably tidy car for a quarter of that price) to tide you over until your credit history improved and you were able to get a loan at a better rate.  Or even better, save up and buy the car for cash.

Sorry, I don't mean to sound patronising - you say "never again", this advice is intended to hopefully help you consider the choices available to you if you're in a similar situation in future.  There's nowt wrong with taking out a loan for a car as such, but if times are hard, £18k is a big chunk of unnecessary expense.

Sncjw

Also got to say when it comes to getting a mortgage they will take in account the existing debt. They will take that debt amount off the money they are 0repared to lend you so just be wary.. 

[Deleted User]

Paying interest on debt while having savings earning peanuts (assume it's not a LISA type thing) makes no sense to be honest, you won't get a mortgage without 5-10% deposit and probably more given your car debt, I'd chuck that at it, along with one application for a MT card

superbigal

You liking to buy a house for about the same price as the car ?