Santander Consumer Finance - Car Personal Loan

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Comments

  • tbourner
    tbourner Posts: 1,434 Forumite
    Santander phoned me today after I emailed them, didn't mention the HPI but said I could sell the vehicle and pay off a lump sum, which would reduce the term but keep the monthly payments the same.
    Trev. Having an out-of-money experience!
    C'MON! Let's get this debt sorted!!
  • AMILLIONDOLLARS
    AMILLIONDOLLARS Posts: 2,299 Forumite
    First Anniversary Combo Breaker First Post
    Better get it in writing for future reference

    AMD
    Debt Free!!!
  • warren88
    warren88 Posts: 10 Forumite
    tbourner wrote: »
    Santander phoned me today after I emailed them, didn't mention the HPI but said I could sell the vehicle and pay off a lump sum, which would reduce the term but keep the monthly payments the same.

    I also have a car on finance with Santander and was wondering something similar.

    For example if I owe £10K over 3 years with interest and their fees included, and if I were able to pay off a lump sum, say £5K, I see that you have said it reduces the term, but does it reduce the interest as well the term as I wouldn't take as long to pay it off?

    Regards,
    Warren
  • nelly12
    nelly12 Posts: 208 Forumite
    First Post First Anniversary
    Guys,

    Santander only register the vehicle on the HPI register as an additional protection for their customers. They do not have to do this but choose to pay the cost. By logging the vehicle it would prevent the vehicle from being sold should it be stolen. Am sure their customer services will assist you by removing the flag.

    As for the lump sum payments mentioned earlier. All HP/personal loans etc arranged via dealerships (and many banks)has front loaded interest and therefore if a lump sum is paid off the agreement then it will only chop off a number of the monthly payments (ie. lump sum divided by the monthly payment). The total amount payable does not reduce even though the term reduces.

    Hope this helps.
  • warren88
    warren88 Posts: 10 Forumite
    nelly12 wrote: »
    As for the lump sum payments mentioned earlier. All HP/personal loans etc arranged via dealerships (and many banks)has front loaded interest and therefore if a lump sum is paid off the agreement then it will only chop off a number of the monthly payments (ie. lump sum divided by the monthly payment). The total amount payable does not reduce even though the term reduces.

    Hope this helps.

    Thanks for that Nelly, I was hoping the interest would reduce if the length of the term got shorter but aww well. So if I wanted to reduce the amount of interest could I just save and get to a stage where I could pay the remaining balance, say 1.5 years of paying the monthly payments, then get a settlement fee and pay it off that way, does this then reduce the interest as the term is shorter? (Sorry, I'm not too clued up on these HP agreements :o)

    Also on a side note, would anyone know if there is a cooling off period on these Santander Consumer Finance agreements?

    Thanks,
    Warren
  • nelly12
    nelly12 Posts: 208 Forumite
    First Post First Anniversary
    warren88 wrote: »
    Thanks for that Nelly, I was hoping the interest would reduce if the length of the term got shorter but aww well. So if I wanted to reduce the amount of interest could I just save and get to a stage where I could pay the remaining balance, say 1.5 years of paying the monthly payments, then get a settlement fee and pay it off that way, does this then reduce the interest as the term is shorter? (Sorry, I'm not too clued up on these HP agreements :o)Yes you are correct.

    Also on a side note, would anyone know if there is a cooling off period on these Santander Consumer Finance agreements? No.

    Thanks,
    Warren

    Hope this helps.
  • tbourner
    tbourner Posts: 1,434 Forumite
    warren88 wrote: »
    For example if I owe £10K over 3 years with interest and their fees included, and if I were able to pay off a lump sum, say £5K, I see that you have said it reduces the term, but does it reduce the interest as well the term as I wouldn't take as long to pay it off?

    You get a rebate of a certain amount when you settle, so yes, but not by a lot, and frankly not enough to care about.
    Trev. Having an out-of-money experience!
    C'MON! Let's get this debt sorted!!
  • Cassigirl2012
    Cassigirl2012 Posts: 1 Newbie
    I too purchased a car in 2008 on what I thought was hire purchase. I called Santander to ask if I could return the car as I had actually paid more than two thirds they said no I could not and that I could not sell it either. I was bewilldered so I started to investigate and went to the dealer to complain about the agreement and that I wasn't fairly treated or explained that the loan I had was a personal loan not a HP agreement, the salesman said that it was probably because it was a better rate of interest. Anyway my husband and I split up and I became into financial difficulty and couldn't meet payments so I stupidly turned a blind eye hoping that it would go away but it surely didn't. I got letters after letters from them until I got one from Anglia UK asking me for the payment arrears to be paid. Santander told me that they couldn't take the car back originally but they could take it back now I was in arrears and they could sell it but I would have to pay the difference. I know that if they send it to auction that it will not reach anything it is worth and I will end up owing them thousands of pounds but now that Anglia are after me I don't know what to do or where to turn as they are car reposession specialists. They could come and clamp the car and take it away but I need the car. I don't know what to do I am really in despair as I have lots of other debts that I am trying to sort out. Anyone here give me some advice please. Where do I stand if it is a personal loan surely it can't be secured against the car. I cant find my agreement either so I am really stuck on what to do.
  • Peelerfart
    Peelerfart Posts: 2,177 Forumite
    First Anniversary Combo Breaker First Post
    Painful reading indeed.
    Space available for rent
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    Cassigirl2012 wrote: »
    I too purchased a car in 2008 on what I thought was hire purchase. I called Santander to ask if I could return the car as I had actually paid more than two thirds they said no I could not and that I could not sell it either. I was bewilldered so I started to investigate and went to the dealer to complain about the agreement and that I wasn't fairly treated or explained that the loan I had was a personal loan not a HP agreement, the salesman said that it was probably because it was a better rate of interest. Anyway my husband and I split up and I became into financial difficulty and couldn't meet payments so I stupidly turned a blind eye hoping that it would go away but it surely didn't. I got letters after letters from them until I got one from Anglia UK asking me for the payment arrears to be paid. Santander told me that they couldn't take the car back originally but they could take it back now I was in arrears and they could sell it but I would have to pay the difference. I know that if they send it to auction that it will not reach anything it is worth and I will end up owing them thousands of pounds but now that Anglia are after me I don't know what to do or where to turn as they are car reposession specialists. They could come and clamp the car and take it away but I need the car. I don't know what to do I am really in despair as I have lots of other debts that I am trying to sort out. Anyone here give me some advice please. Where do I stand if it is a personal loan surely it can't be secured against the car. I cant find my agreement either so I am really stuck on what to do.

    It would of said on your T&C's that it's a fixed personal motor loan or along those lines so the conditions of this wouldn't be the same as it would if you had HP.

    Santander will always win this argument against you as you signed this agreement with them.
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