Personal Loan Question

[kerzo]

My basic question would be - apply for a loan now or leave it for a while?

More details - I am looking to get a fairly modest loan of ~ £5k to buy a car and the lowest seems to be about 8.9% APR from the likes of Tesco Finance. I am new to this finance domain so I am quite unsure if this is a good rate or not and if it is likely to either rise or drop over coming months?

I am not in desperate need of a car so it is more of a 'want' that I can afford as I am in full time employment which is fairly well paid and have no bills (live at home with parents).

So just to recap again, is it going to get significantly better/worse or is it going to be much of a muchness? I know crystal balls are in short supply but just looking for educated guesses!

[farmroad38]

Obviously no guarantee, but my guess is that loan rates won't be dropping much - the banks are trying to pull money in at the moment, not give it out.

That could change, of course, if the Treasury leans on them to force them to lend at more reasonable (pre-'Credit Crunch') levels.

[pyrogena]

Maybe if you're living at home save up the cash rather than take out a loan?

[kerzo]

Maybe if you're living at home save up the cash rather than take out a loan?

I have been saving and so far I am only about 1/5 of the way there, it would probably take until next Xmas to get it all together unless I have no life whatsoever!