Finance while sell current car..?
Finance while sell current car..?
Author
Discussion

jedwa115

Original Poster:

35 posts

209 months

Wednesday 22nd June 2011
quotequote all
Looking at buying a motor for 10k, current car will prob fetch 3k. Planning 7k loan.
But that leaves me 3k short until I sell the current car, which I can't do until it is replaced...!

Thinking of either taking an additional 3k loan as a bridge OR taking a 10k loan and putting the 3k on one side to pay the difference each month...

Anyone been through this one? Any other ides?

ringram

14,701 posts

264 months

Wednesday 22nd June 2011
quotequote all
Be patient, sell your current one first... it may take a while or you may only get half of that!

wilbo83

1,544 posts

181 months

Wednesday 22nd June 2011
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I am due to have this dilemma soon. What i dont get is if you do as suggested above, then surely you will have no car for a little while?!

jedwa115

Original Poster:

35 posts

209 months

Thursday 23rd June 2011
quotequote all
that's the dilema, it's either no car for a while or no money for a while...! No car is not an option

jason s4

16,810 posts

186 months

Saturday 25th June 2011
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Some bank loans will allow chunks to be paid off at any time without penalty.

Therefore, borrow the full amount and pay whatever you sell the other car for off the loan.

Speak to your bank first though.

jedwa115

Original Poster:

35 posts

209 months

Sunday 26th June 2011
quotequote all
Jason, that is what I had concluded! I will incur max one months interest penalty for early repayment.

Ungarsee

372 posts

235 months

Sunday 26th June 2011
quotequote all
Assuming you're confident of getting the £3k back fairly quickly and you're not going to be stuck with it then what about an overdraft increase? Rate will be high, say circa 14% to 18% but it's more convenient. Most loans will allow early settlement nowadays but some will not allow partial overpayment

jdwoodbury

1,363 posts

222 months

Tuesday 28th June 2011
quotequote all
How about £3k on a 0% interest credit card, plenty around...will cost you about 3% to setup the transfer, may be cheaper than an early repayment charge. Remember interest on loan are often front loaded so you could be stung heavily.