loan for depoist for car

Hunnie1977

Hi
I need around £3k for depoist on a car to keep monthly repayments on car low what is best idea credit card or loan 

Hunnie1977

one other question or would taking money from pension pot a better idea 

TheSpectator

Hunnie1977 said:

Hi
I need around £3k for depoist on a car to keep monthly repayments on car low what is best idea credit card or loan 

Why do you need to keep the monthly repayments low on the car? Once you add any loan repayments on the £3k loan to the overall monthly cost is there that much of a difference?

Hunnie1977

as that what is been asked by me and my payments would be 210 a month for the car other wise would 380 a month
as am paying 204 for a 73 plate and 210 is for 25 plate with other  dealer and manfu whose int rate is 2.9 where i am payin9% at present for 73 plate 

TheSpectator

Hunnie1977 said:

as that what is been asked by me and my payments would be 210 a month for the car other wise would 380 a month
as am paying 204 for a 73 plate and 210 is for 25 plate with other  dealer and manfu whose int rate is 2.9 where i am payin9% at present for 73 plate 

Yes, but you then have to add the monthly repayment of the £3k loan onto this to get a like for like comparison? Unless you have already included it, but it's not clear from your post.

DrEskimo

If the entire motivation is just to get to another car finance arrangement because it has a lower APR then it’s a complete false economy. Just stick with your current car and pay it off as quick as you can. 

Regarding withdrawing from your pension pot, how old are you? If you are not yet at retirement age then absolutely not, do not touch it. 

Hunnie1977

still have 2 yrs left to pay on my present car  and then find 16k and at present equit is 650.00 
am 60 yrrs old 

DrEskimo

Any reason you want to change to a different car?

just keep going with the current agreement and decide in 2yrs if you want to refinance the balloon and look to own your current car, or use savings/pension plus any equity in your car at the end of 2yrs to get another car cheaper than £16k. 

Borrowing money to be able to borrow more money is unwise.