Laws/Rules around Car Finance

anniepannie_2

Hi there

I took out a 5 yr car finance deal for £100 a month (includes 5.8% interest). I'm only halfway through my term and have decided to pay the balance off in full and save some money.

To me the balance would mean the remaining capital left on the car however to my surprise I'm expected to pay all the future interest on that also !!!

What is my stance - are they allowed to do this?

And if I have to pay all the future interest regardless is there any point in me paying it off in full now

Inactive

You will need to read through the original contract that you signed to establish if they can do that, I suspect that they can.

standupguy

You must receive a rebate of charges in line with CCA regulations.

If you phone the company they should tell you: -

The full balance outstanding at that time

The rebate of charges to settle early

The actual settlement figure ( ie the balance less the rebate of charges)

The date the settlement figure expires ( and you would have to request a new one after that date)