Loan...

So, a bit of an update.

I have had an offer on my car of £8500.00

If i sell and put some cash towards it i can pay off the finance and get rid of the £225.00 a month :)

My idea is...

borrow the £10,000 from the family member. Wipe off the £9300 for the car finance.

Sell the car for £8500. Use the £8500 to pay off the £5700 remaining on the loan.

Take out a loan for £10,000 and pay back the family member.

That was i have one debt of £10,000 and repay approx £198 a month. Use the remainder of the loan to buy a cheap run around and use the rest of the cash to save towards paying off the loan early.
 
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What is the car? If you tell us the make, model, age and mileage we can tell you whether you should accept the offer of £8500 or whether you would be better off selling it for more.
 
Shep_Cobain said:
So, a bit of an update.

I have had an offer on my car of £8500.00

If i sell and put some cash towards it i can pay off the finance and get rid of the £225.00 a month :)

My idea is...

borrow the £10,000 from the family member. Wipe off the £9300 for the car finance.

Sell the car for £8500. Use the £8500 to pay off the £5700 remaining on the loan.

Take out a loan for £10,000 and pay back the family member.

That was i have one debt of £10,000 and repay approx £198 a month. Use the remainder of the loan to buy a cheap run around and use the rest of the cash to save towards paying off the loan early.
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tbh I would sell the car for £8500 , borrow enough to pay the finance and continue to repay the £5700 as you're doing
 
Thats what i'd do. Borrow £9300, sell car for £8500 and pay this to family member.

Pay back remaining £800 and just continue to make payments on the loan that only has 2.5 years left

This leaves you no cash for a run around however. I'd experiment with taking the bus etc.. to cut the debt down. But that may not be possible for you.
 
Morba said:
Why take a loan to pay family member? That's crazy.
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presumably because said family member can only loan it short term.

Which is understandable. Not many can afford to be without 10k for 5 years or whatever.

A month while he sells his car and sorts it out maybe....
 
I'd do everything you said except taking out the 10k loan to pay back family.

Pay them back with an agreed / maybe variable due to circumstances sum, that you can easily afford and at bank interest rate only, over however long it takes you to pay it back.
3.3% for me ;) as that is exactly what I'm doing.
Some months it's £800, some months it's as little as £300, depends what cash I've blown elsewhere
 
MrLOL said:
presumably because said family member can only loan it short term.

Which is understandable. Not many can afford to be without 10k for 5 years or whatever.

A month while he sells his car and sorts it out maybe....
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If they are lending the money based on a quick repayment then I don't understand the point. He isn't struggling, so paying more until he sorts a loan isn't a problem.
 
Shep_Cobain said:
So, a bit of an update.

I have had an offer on my car of £8500.00

If i sell and put some cash towards it i can pay off the finance and get rid of the £225.00 a month :)

My idea is...

borrow the £10,000 from the family member. Wipe off the £9300 for the car finance.

Sell the car for £8500. Use the £8500 to pay off the £5700 remaining on the loan.

Take out a loan for £10,000 and pay back the family member.

That was i have one debt of £10,000 and repay approx £198 a month. Use the remainder of the loan to buy a cheap run around and use the rest of the cash to save towards paying off the loan early.
Click to expand...

Have you sold the car then seeing that you are looking at buying another car for £4000.
 
You sold it just like that? What was it actually worth - I noticed you continually ignored all my offers to value it properly for you?
 
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