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Original poster

Car finance or personal loan

12 replies

ValleysGirl72 · 22/03/2021 15:58

Hi guys,

I`m trying to clear as much debt as possible but I also want to get myself a car for travelling to and from work.

I currently have a bank loan with about 3k left to pay, but I also have outstanding car finance, also about 3k left to pay, and the car I have my eye on is about 3k.

I use H`s car at the moment for travelling but it is a mobility car and we have to be careful about the mileage, plus he checks the car over when I get home to look for any scratches or bumps etc.

I was thinking about contacting the bank to see about a loan and pay everything off in one fell swoop so that I`d only have one payment instead of 2 or 3 going out of my account.

Do you think this is a good idea?

Many thanks in advance

OP posts:
bouncydog · 23/03/2021 07:03

No consolidation is never a good idea. You won’t have paid anything off you will have extended the term on what you owe now. Review your overall budget and see if you can trim funds elsewhere and get your loans paid off quicker. Where is the car you have outstanding finance on. Why can’t you use that one?

NoPinkPlease · 23/03/2021 07:10

Consolidation can be a good idea if the interest rate is lower on the new finance. The length of term might mean you are paying more in the longer term. It depends. Also it depends how much you need to do this now as to whether it's a good idea or not and how secure your income is. Do you have a plan if you suddenly couldn't pay it?

FTEngineerM · 23/03/2021 07:13

Is it not a possibility to save for a few months and get yourself an absolute bargain of a car for a few hundred quid and run that into the ground?

alanpartridgefromtheoasthouse · 23/03/2021 07:13

You'd be better off buying a car on a credit card then transferring it onto a 0% interest credit card. Be realistic though - taking on more debt is not going to be good for your monthly finances regardless of interest rates.

Original poster
ValleysGirl72 · 27/03/2021 00:25

@bouncydog, the car which I had finance on was repossessed a couple of years ago

OP posts:
Original poster
ValleysGirl72 · 27/03/2021 00:26

@NoPinkPlease my job is very secure,

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Original poster
ValleysGirl72 · 27/03/2021 00:28

@FTEngineerM I think that may be my best option at the moment

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RJnomore1 · 27/03/2021 00:28

How long til you pay off that repossession

You’ll struggle for reasonably ok credit rates. Can you cycle?

Original poster
ValleysGirl72 · 27/03/2021 00:47

@RJnomore1 about 2 years, but I clear my credit card I'll be able to pay an extra £100 a month and finish it sooner

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RJnomore1 · 27/03/2021 00:51

Ok so could you use a cycle until then?

SpeakingFranglais · 27/03/2021 09:20

I agree with the saving up.

My DF passed away in January, we re selling his car. A 2007 Fiesta that has been treated as a baby and only has 23k on the clock. It's a gift to someone needy and we will only get £1200 max for it. If someone in your situation sees our car for sale they will be getting a great bargain.

There must be a bargain out there for you somewhere.

Original poster
ValleysGirl72 · 27/03/2021 23:20

@RJnomore1 I would like to cycle to work but I live too far away

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