Do I Need to Put a Deposit Before a Loan?

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the89er
the89er Posts: 19 Forumite
edited 8 December 2019 at 12:11AM in Motoring
My parents' maturity date is next January and they'd like to take out a loan to pay off the balloon.

Is a deposit required or is that only when they're getting another car?

They're PCP.

Thanks.

EDIT:
The loan in question would be from their car finance company.

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  • Car_54
    Car_54 Posts: 8,213 Forumite
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    If it’s a bank loan, no. If it’s their own bank, they may not even ask what the loan is for.
  • the89er
    the89er Posts: 19 Forumite
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    Thank you.

    The loan would be from the car finance company.
  • Car_54
    Car_54 Posts: 8,213 Forumite
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    the89er wrote: »
    Thank you.

    The loan would be from the car finance company.
    Then ask them!
  • tonyh66
    tonyh66 Posts: 1,736 Forumite
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    edited 8 December 2019 at 7:20AM
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    Can they not get a loan from their bank or other source?, the APR will be way lower and the repayments cheaper.
  • TadleyBaggie
    TadleyBaggie Posts: 6,055 Forumite
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    I asked for a settlement amount a few months in advance, got a loan at a low rate from my bank in hours, transferred the agreed amount to the finance company and it was job done.
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