What's the best way of getting a car loan?
Discussion
Okay, intend to borrow a sum of money of roughly £10k this month. It is a specific car that is coming on the market during this time that I desire and thinking what the heck, I may never be able to afford this again. The car will have little/no depreciation and will probably be a highlight in my motoring hobby. Which brings me to asking
I would like to obtain a loan which enables me to pay it off sooner if I can (i receive a pay rise in September). Plus my current fun car I can sell off in the summer and get nearly half I need for the loan anyway. Taking the loan out in September is not really an option as the car I'm after will be on sale within a week or two and I have a buyer for my car (a good friend) but will not have available funds till he builds his garage. Plus, summer is around the corner.
So, what would you recommend? Never entertained a loan before. Maybe it's best not too. But I would like to know my options regarding a flexible loan with little interest of some sort...
Thanks
I would like to obtain a loan which enables me to pay it off sooner if I can (i receive a pay rise in September). Plus my current fun car I can sell off in the summer and get nearly half I need for the loan anyway. Taking the loan out in September is not really an option as the car I'm after will be on sale within a week or two and I have a buyer for my car (a good friend) but will not have available funds till he builds his garage. Plus, summer is around the corner.
So, what would you recommend? Never entertained a loan before. Maybe it's best not too. But I would like to know my options regarding a flexible loan with little interest of some sort...
Thanks
Edited by The Lukas on Saturday 6th March 22:48
m4tt said:
See if any credit cards are offering a good deal for life of balance, Virgin are usually pretty good for this. Unlimited overpayments. However there will be ~3% set up fee.
Very limited knowledge on this, please tell me more. I intend the loan to be payed off in under two years. Thanks again 
okgo said:
The Lukas said:
Merlot said:
Zopa
Heard of these and looks a good way of doing this. Flexible and simple and f
king long, it looks. Thanks for the suggestion. I'm a Zopa lender, so don't have any direct experience with the borrowing part but I'm lead to believe that the process is pretty quick and painless, certainly compared to a bank loan.
Merlot said:
okgo said:
The Lukas said:
Merlot said:
Zopa
Heard of these and looks a good way of doing this. Flexible and simple and fking long, it looks. Thanks for the suggestion. I'm a Zopa lender, so don't have any direct experience with the borrowing part but I'm lead to believe that the process is pretty quick and painless, certainly compared to a bank loan.
Having just been through this and for a similar amount I found getting finance at the moment like pulling teeth.
I certainly wasn't offered anywhere near the 'headline rates' posted up on comparison sites - even by my own bank!
My credit record is fine but I'm sure there must be something causing it.
Anyway, I guess my point is don't glibly assume (as I did) you'll be given finance at the advertised rate in a timely fashion. The poor seller in my transaction was left on pins during days of 'Have you got the money yet?' 'No..still waiting for the bank / paperwork / planets to align / insert other unlikely event here'. Fortunately he was an exceptionally decent and patient chap and bided his time and got his cash (which, as a thank you in return, I paid full asking price on the car as opposed to the few hundred quid off we'd agreed previously).
In the end the option that was the quickest, easiest and remarkably competitive was just a bog standard agreed overdraft for the amount.
Competitive with the loan rates I was offered (actually a bit better), no arrangement fee and of course no early repayment issues. As I now have the psychological hit of seeing my current account in the negative every month I'll also have it repaid in a matter of months rather than spread out over years.
So worth a try - you may be surprised. I've spent all my life thinking of overdrafts as the devils curse and avoiding them like the plague but on the face of it I can't see anything wrong with what I have.
And I'm free to arrange a separate loan at any point to clear it if need be (although above caveats apply!).
Good luck. If in doubt, go have a chat with your bank. If they're half decent you may come away happy.
Unfortunately my bank are a shower of c's so I wasn't as lucky!
I certainly wasn't offered anywhere near the 'headline rates' posted up on comparison sites - even by my own bank!
My credit record is fine but I'm sure there must be something causing it.
Anyway, I guess my point is don't glibly assume (as I did) you'll be given finance at the advertised rate in a timely fashion. The poor seller in my transaction was left on pins during days of 'Have you got the money yet?' 'No..still waiting for the bank / paperwork / planets to align / insert other unlikely event here'. Fortunately he was an exceptionally decent and patient chap and bided his time and got his cash (which, as a thank you in return, I paid full asking price on the car as opposed to the few hundred quid off we'd agreed previously).
In the end the option that was the quickest, easiest and remarkably competitive was just a bog standard agreed overdraft for the amount.
Competitive with the loan rates I was offered (actually a bit better), no arrangement fee and of course no early repayment issues. As I now have the psychological hit of seeing my current account in the negative every month I'll also have it repaid in a matter of months rather than spread out over years.
So worth a try - you may be surprised. I've spent all my life thinking of overdrafts as the devils curse and avoiding them like the plague but on the face of it I can't see anything wrong with what I have.
And I'm free to arrange a separate loan at any point to clear it if need be (although above caveats apply!).
Good luck. If in doubt, go have a chat with your bank. If they're half decent you may come away happy.
Unfortunately my bank are a shower of c's so I wasn't as lucky!
Merlot said:
okgo said:
The Lukas said:
Merlot said:
Zopa
Heard of these and looks a good way of doing this. Flexible and simple and fking long, it looks. Thanks for the suggestion. I'm a Zopa lender, so don't have any direct experience with the borrowing part but I'm lead to believe that the process is pretty quick and painless, certainly compared to a bank loan.
okgo said:
Merlot said:
okgo said:
The Lukas said:
Merlot said:
Zopa
Heard of these and looks a good way of doing this. Flexible and simple and fking long, it looks. Thanks for the suggestion. I'm a Zopa lender, so don't have any direct experience with the borrowing part but I'm lead to believe that the process is pretty quick and painless, certainly compared to a bank loan.
I was denied.
My understanding is that it's a heavily manual task at their end so I would not expect a quick turnaround on an application or funds.
eztiger said:
okgo said:
Merlot said:
okgo said:
The Lukas said:
Merlot said:
Zopa
Heard of these and looks a good way of doing this. Flexible and simple and fking long, it looks. Thanks for the suggestion. I'm a Zopa lender, so don't have any direct experience with the borrowing part but I'm lead to believe that the process is pretty quick and painless, certainly compared to a bank loan.
I was denied.
My understanding is that it's a heavily manual task at their end so I would not expect a quick turnaround on an application or funds.
okgo said:
Merlot said:
okgo said:
The Lukas said:
Merlot said:
Zopa
Heard of these and looks a good way of doing this. Flexible and simple and fking long, it looks. Thanks for the suggestion. I'm a Zopa lender, so don't have any direct experience with the borrowing part but I'm lead to believe that the process is pretty quick and painless, certainly compared to a bank loan.
Took me ages to get anywhere near the amount I needed (£2k), in the end I gave up.
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