Some basic questions about car loan/finance

AMG2B
AMG2B Posts: 83 Forumite
in Loans
Hi everyone,

Sorry for ridiculous questions but I've never taken out car finance before!

In a few weeks I'll be looking to take out a loan of approx 9k (depending on car I find). Obviously personal loans are a better rate than finance from car dealers which leads to a few questions...!

1. Am I better off getting a personal loan at a low rate and buying the car 'cash'?

2. With a normal loan can I over pay to pay it off sooner?

3. Same for car finance (not looking at PCP - looking to buy outright over course of loan) can these be paid off sooner?

Would be so grateful for any insight, thank you!
Everything will be ok in the end, if everything's not ok then it's not the end :)

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    You can overpay either, subject to to early repayment charges.

    Which is better depends on your circumstances and what you may be able get. A stronger history will give you more options.
  • AMG2B
    AMG2B Posts: 83 Forumite
    Do you know what early repayment charges tend to be like? Are they punative? Or does it depend on each individual loan?
    Everything will be ok in the end, if everything's not ok then it's not the end :)
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    As a maximum, it will be two months interest on the early settlement amount.
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