Hi Folks,
First of all a breakdown of my current situation.
Car was just sold for €13,000
In order to clear my AIB Car Loan would be €11,450 (this was a 5 year fixed loan with only 2 years remaining - non Hire Purchase)
I then hope to buy another car in Feb/March next year and will require a new loan for €20k (I know what I want buy but have a lend of a car until then).
Loan interest rates have gone up as we all know and have also been informed (someone correct if I'm wrong!) that most car loans are now based on Hire Purchase Agreements (which I don't want tied into) so I will not own the car until full payment is made.
My current repayment on the €11,450 is €402/month (this will be paid in full by Jan 2015)
So what's the best option if I need a 20k car loan in a few months time (without having a Hire Purchase)?
A. Do I keep the 13k I made from the car sale and continue paying back the remaining car loan for the next two years and come Feb/March try get a separate personal/car loan from a different institution for the extra 7k?
B. Do I clear the AIB loan which will leave me with €1550(€13k - €11,450) cash and then look to get a new €18,450 5 year loan in Feb/March with the higher interest rates??
C. Open To Suggestions!!
Hope that makes sense.
Marty
First of all a breakdown of my current situation.
Car was just sold for €13,000
In order to clear my AIB Car Loan would be €11,450 (this was a 5 year fixed loan with only 2 years remaining - non Hire Purchase)
I then hope to buy another car in Feb/March next year and will require a new loan for €20k (I know what I want buy but have a lend of a car until then).
Loan interest rates have gone up as we all know and have also been informed (someone correct if I'm wrong!) that most car loans are now based on Hire Purchase Agreements (which I don't want tied into) so I will not own the car until full payment is made.
My current repayment on the €11,450 is €402/month (this will be paid in full by Jan 2015)
So what's the best option if I need a 20k car loan in a few months time (without having a Hire Purchase)?
A. Do I keep the 13k I made from the car sale and continue paying back the remaining car loan for the next two years and come Feb/March try get a separate personal/car loan from a different institution for the extra 7k?
B. Do I clear the AIB loan which will leave me with €1550(€13k - €11,450) cash and then look to get a new €18,450 5 year loan in Feb/March with the higher interest rates??
C. Open To Suggestions!!
Hope that makes sense.
Marty