Discussion
Morning
I'm looking at getting a new car and the most optimum way to finance it.
I like the idea of owning my car at the end of the finance term, rather than doing a PCP or a lease, so am looking at a simple personal loan for the amount I need to borrow.
However, the amount I'm looking to borrow is around £30k.
Looking around, the 'threshold' for getting a good APR (sub 3%) is a maximum of £25k. Above that, the APR goes up to over 6%.
So, is there anything stopping me getting two seperate personal loans for £15k over the same repayment period, at the same time, rather than one for £30k?
As I see it, doing this will save me over £2000 in interest for the same amount borrowed over the same period?
Or is there another way of achieving a low interest rate for this kind of sum?
I'm looking at getting a new car and the most optimum way to finance it.
I like the idea of owning my car at the end of the finance term, rather than doing a PCP or a lease, so am looking at a simple personal loan for the amount I need to borrow.
However, the amount I'm looking to borrow is around £30k.
Looking around, the 'threshold' for getting a good APR (sub 3%) is a maximum of £25k. Above that, the APR goes up to over 6%.
So, is there anything stopping me getting two seperate personal loans for £15k over the same repayment period, at the same time, rather than one for £30k?
As I see it, doing this will save me over £2000 in interest for the same amount borrowed over the same period?
Or is there another way of achieving a low interest rate for this kind of sum?
I believe the APR is based on the risk profile - that’s why you see a higher APR with a higher amount. When applying for the second loan, your first loan will show on your credit check - there’s no certainty that the second loan’s APR will be as low as the first as a result, and lenders may also choose not to lend to someone who’s just taken out a large loan and immediately goes looking for a second one...
If you have some form of premier banking, it may be worth calling them to see if they can do something about the rate offered. Other than that I can’t offer much advice I’m afraid - others with more experience in this sort of thing will hopefully be along to suggest alternatives.
If you have some form of premier banking, it may be worth calling them to see if they can do something about the rate offered. Other than that I can’t offer much advice I’m afraid - others with more experience in this sort of thing will hopefully be along to suggest alternatives.
Ransoman said:
Why not just get a PCP and pay off the balloon at the end?
Or, get PCP over 4 years, divide the final balloon payment by 48 and put that into a savings account every month then at the end of the PCP, pay the balloon payment and buy yourself something nice with the interest?
This is plan B, depending on the APR rate the dealer can offer.Or, get PCP over 4 years, divide the final balloon payment by 48 and put that into a savings account every month then at the end of the PCP, pay the balloon payment and buy yourself something nice with the interest?
The car I'm looking at is nearly new, but low APR rates tend to only be offered on brand-new cars.
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