Paying off Car Finance Early???

[welsh4814]

im looing to pay off my car finance early and cant figure out what the settlement figure will be, i know i might get charged for paying back early however at the minute im just trying to find out a ball park figure. my finance perticulars are this: credit= �6455.19 total amount payable= �10,050.40 duration of agreement= 60 months APR= 20.7% the cahrge for credit was �3495.21 this comprised of intrest �3195.21 credit facility fee �200 and completion fee �80. I have however already payed back �1380 as of now. Many Thanks for any help you can provide me with. Craig

[Ethel]

The easiest and surest way is to telephone them and ask them for a settlement figure.

[bednobs]

tbh your settlement figure probably wont be far off the apporx �8700 ish you owe now. Companies make their money by tying you into a repayment schedule, and usually use the payments made to pay off the interest first. if you pay it off early, there is no profit in it for them therefore they probably wont reduce it all that much

as ethel say, the only way to find out is to ask them, but i cant imagine they are going to be happy, when they thought they were gonna get regular money off you for the next 4 1/2 years, and now they wont. In any case, the charge for finance will still be payable

[Skyline D]

At a guess I'd think you might get �200 - �400 off by settling early.

As others have said though, the only way to find out for sure is to ask.

[Loosehead]

In the past Bednobs would have been correct, ie in the time of the Rule of 78 loans, however they are now illegal. Generally the lender can only charge penalties within certain rules and the loan must be treated on a reducing balance basis, so each month they take off your payment and each month they add on the interest (usually monthly ok pedants). so the figure of 10K is what you would pay if you saw it through to the bitter end. In reality the initial balance of 6455 should have been reducing. They can add a max of 28 days penalty interest. See here for the rules
http://www.financesurgery.co.uk/loan/rule78.cf m
as suggested though just ask for a fiinal settlement figure, I'd predict that it will be around 6k. Let us know!