Car Loan

My boyfriend got a car loan at his bank clydesdale (they suck) and was given initally a good interest rate.  By the time he found an automobile to purchase a month or so they increased the rate and told him he could reapply later for a lower interest rate after he had been paying on the loan.

How long should he wait in order to try and get another loan? He has had this one for 5 months at a rate of 15.99%

Any suggestions on who to try as well?

Is there no way he could cancel? also are the bank allowed to vary the rate like that? sounds like it may be in the 'small print'

I've never taken a loan from one of the loan companies themselves - just a similar bank loan with HSBC back in 99. I decided to pay off £7500 over a 30 month period and I 'think' the rate was somthing like 7.25 %.

16% sounds very steep to me, maybe becuase it's a very short term?

If you do get a new loan, make sure it's from one of the 'big' companies, alliance & leiecester do a specific car loan deal cant think of any others though.

Check out moneysavingexpert.com - another fantastic online resource for personal financials.

Hope this helps !

Cheers! Dennis! West London & Slough UK!

There should be no penalties for early repayment, that just means you need to find someone who is willing to give you another loan at a more favourable rate and pay off the old loan.

Obviously, someone is trying to take advantage of you.  15.99% is a high rate for autos and would say would be given to those who are "credit unworthy".