Black Horse Rebate / Pay Back Or Not ?

RoyalReccon

Hi All,

I bought a car on 24/07/2003 and took a loan for 5 years (60 payments)

Loan amount £4845
Total charge for credit £2121
Total payable £6966

With an APR 16.3

I have been making regular payments of £115.27 since then

27 payments have been made which makes it total of £3112 paid

Now the remaining amount is £3853

I want to clear this debt by taking a low interest rate loan as I do understand that there are many more companies offering loans on a very low interest rate.

I would appreciate if you can advice me on How Black Horse calculate the rebate as they say on the website

“What if I want to settle my loan early?
“If you wish to settle your loan early, we will calculate the total amount due had the loan been paid off over its natural term, and then calculate a reduction of charges (rebate), as set out in the Consumer Credit (Rebate on Early Settlement) Regulations 1983. The rebate you receive is deducted from the total amount due.”


So in your opinion what is the best way to get out of this loan or is it best to stay with it for the remaining term?


Thanks in advance for your kind advice

Cheers

southernscouser

RoyalReccon wrote:

Hi All,

I bought a car on 24/07/2003 and took a loan for 5 years (60 payments)

Loan amount £4845
Total charge for credit £2121
Total payable £6966

With an APR 16.3

I have been making regular payments of £115.27 since then

27 payments have been made which makes it total of £3112 paid

Now the remaining amount is £3853

I want to clear this debt by taking a low interest rate loan as I do understand that there are many more companies offering loans on a very low interest rate.

I would appreciate if you can advice me on How Black Horse calculate the rebate as they say on the website

“What if I want to settle my loan early?
“If you wish to settle your loan early, we will calculate the total amount due had the loan been paid off over its natural term, and then calculate a reduction of charges (rebate), as set out in the Consumer Credit (Rebate on Early Settlement) Regulations 1983. The rebate you receive is deducted from the total amount due.”


So in your opinion what is the best way to get out of this loan or is it best to stay with it for the remaining term?


Thanks in advance for your kind advice

Cheers

Just phone them up and ask them for a settlement figure. Obviously this will only be valid until your next payment.

Normally they will charge you 1 or 2 months interest!

RoyalReccon

southernscouser wrote:

Just phone them up and ask them for a settlement figure. Obviously this will only be valid until your next payment.

Normally they will charge you 1 or 2 months interest!

Hiya,

Thanks for reply.

my understanding was same as your's , because when i bought the car the garage person told me the same thing, but when i rang them today they told me this 1 or 2 months role only applies if you pay back in 1st three months of talking the loan out. and if i have been told other wise i have to take it to the people i have been told by

My orignal figure i have to pay is £3853 if i carry on paying for 33 more months.

they have offered me a setelment figure of £3348, which is almost abuot £500 less but still alot.

i have just looked at NORTHAN ROCK https://www.northernrock.co.uk/loans/quote/index1.asp

They are offering the loan for £3348 for 12 months with total of £102 intrest, which would defenatly save me £400.


what do you say?

southernscouser

I'll be honest with you, I'm not a loan expert but what they are telling you is either harsh or crap! Can anyone else with more knowledge shed any light?

Is it a well known company? Do you have the original paper work and T&C's? If you do have a read through it and look for the repayment or early settlement part.

IF, you do have to pay that ammount then I see no reason why not to take it. Like you say you will be saving £400 odd. Just make sure you can afford the £287 per month repayments!