Loan help needed

poppilicious

I'm writing on behalf of my sister.
She has agreed to buy a new car that she was due to collect on Tuesday, had loan agreed with Tesco and was expecting the funds to hit her account today so had set up insurance etc.
She's received a letter today from Tesco stating that the loan has been declined.
She wants to borrow an additional 3.5k on top of a current loan of 8.5k so total required is 13k.
She's never defaulted on a payment of her current loan but does have an overdraft with her current bank (though I'm not sure of the amount)
She's unsure of where to go next because presumably the rejected loan from Tesco will now be on her credit record and she doesn't want to make things worse for herself by just applying for loans willy nilly.
So
question 1: should she try and get a loan for just 3.5k for the car or will she need to apply for 13k and how will this affect her credit score?
question 2: does anyone have any experience of someone who may be willing to lend this amount?
her current bank have said that they can lend her the money but only over 5 years which would put the monthly premiums outside of her budget.
Hope this all makes sense, I really appreciate any advice you can give.

Poppy

jonesMUFCforever

If she leaves the £8.5k loan - she will have to continue with repayments until it is repaid.
If she then applies for a new loan of £3.5k she will probably be offered a bad rate as £3500 is considered a low amount loan.
Can she afford repayments on 2 loans?
My inclination would be to go back to her bank and ask to see a senior account manager - she should ask them again to reconsider the loan over 84 months. This might be approved on appeal but the interest rate will be reflected in the bank's perceived risk.

She really needed to sort out the finance before agreeing to buy the car.