Car Loan

[MartynVRS]

I've never had to nor wanted to do it but for the first time I'm considering it to buy a car I really like. By the time I sell my current car and with that I've saved so far I'll probably need £4-5k but depends on how long it takes me to find a good example.

Is the best way to just get a loan from a bank and pay off over 3 years? My outgoings are minimal and doing a quick check on one bank site I can afford the repayments. I've always been wary of taking any form of finance out, never even touched my overdraft, always careful with money. I have a credit card but that's only to start building a rating up and there hasn't been anything on it for the last year. I used to buy fuel and pay it off straightaway.

What's the best way to take out a loan for this amount? Where's cheapest? Things I need to be mindful of etc.

[gregf40]

Zopa will probably be quicker/easier/cheaper than a bank.

[AAD44H]

Sainsbury headline rate is 3.9% now so could be worth a go.

[spud989]

Sainsbury's headline rate is for 7.5k upwards , I think.

[MartynVRS]

Just had a look at that one. The difference between taking £5k and £7.5k is about £50 more in interest over the 3 years. The total payable interest on £7.5k is £451 and would be £220/mth. Are there any catches to paying it off early if I wanted to?

[Martin_M]

MartynVRS said:

Just had a look at that one. The difference between taking £5k and £7.5k is about £50 more in interest over the 3 years. The total payable interest on £7.5k is £451 and would be £220/mth. Are there any catches to paying it off early if I wanted to?

Look at the terms and conditions - some lenders charge an early repayment fee.