How to get out of my car finance... ?

j0s3

Hi all,

Once upone a time, when I was less wise, I bought a car and took out the finance package from the dealer. I have something like 4.5 years to go (over 6 months).

I realise (now) that I'm being charged 16.9% APR on my monthly payments (scandalous, I know). I was considering taking a loan (yet another, that is...) at a lower rate and transfering from the offending party... but this is the bit I need help with (since I get confused with interest rates, aprs, flat rates etc..)

This really is more a question of how finance companies work:

If I ask for a settlement figure, does interest get added to the total figure?

If yes, then I suppose the added interest is going to be high enough not to merit transfering this loan into a new one (because I would really be paying 2 lots of interest in the end)

Am I correct in this thinking?

If so, I think I'll be suffering for 5 years knowing I'm being hammered on this loan..

thanks

socmwils23

Depends on the terms of the finance but usually it is only up to two months interest added on. Best thing to do is ring them up and ask for a settlement figure. It will give you the figure you need to refinance and allow you to scout around for a better deal.

You need to ask when the settlement figure is valid too (it will change with each payment you make). Remember getting this figure in no way obligates you to settle. It is just a fact finding phone call.

Good luck

j0s3

Thanks for that - if it's only a couple (or few) months interest then it's definitely worth shifting that bill elsewhere