car finance - paying off early

hewhoisnotintheknow

My other half has a car on finanace, 170 a month

If she has the cash can she pay the balance off early and pay an admin fee?

I wont be seeing her until the weekend so cant look at the paperwork until then


cheers

Hintza

Why would you want to? I am assuming there will be no reduction for early payment. Is it not better sticking in the bank on high interest account?

hewhoisnotintheknow

Hintza wrote: »

Why would you want to? I am assuming there will be no reduction for early payment. Is it not better sticking in the bank on high interest account?

Hi thanks for the reply

I thought you might be able to pay it off early and for a fee save some interest?

I dont know about finance as i never use it

she got this car before she got me!

goldspanners

nope, it will cost her money, it will cost the full amount she agreed to pay back (including all interest) plus an early settlement fee im sure.

hewhoisnotintheknow

goldspanners wrote: »

nope, it will cost her money, it will cost the full amount she agreed to pay back (including all interest) plus an early settlement fee im sure.

!!!!!!, oh well!

Scuttsy

Nope interest will be calculated until that point in the loan and she will end up paying the final purchase fee. But you will still save a fortune in interest, unless of course it is a very low or 0% deal. The final purchase fee will be charged at the end of the agreement anyway.

hewhoisnotintheknow

Scuttsy wrote: »

Nope interest will be calculated until that point in the loan and she will end up paying the final purchase fee. But you will still save a fortune in interest, unless of course it is a very low or 0% deal. The final purchase fee will be charged at the end of the agreement anyway.

ahh, the saving in interest was what i was hoping for

Woby_Tide

goldspanners wrote: »

nope, it will cost her money, it will cost the full amount she agreed to pay back (including all interest) plus an early settlement fee im sure.

I'm sorry but without seeing what deal the person signed up to the above just doesn't stand up. They may have sigend up to such a deal, they may have signed up to a deal that allows them to pay up at any point without fees. Without the terms and conditions it's all guesswork and bad advice to be honest.

goldspanners

Woby_Tide wrote: »

I'm sorry but without seeing what deal the person signed up to the above just doesn't stand up. They may have sigend up to such a deal, they may have signed up to a deal that allows them to pay up at any point without fees. Without the terms and conditions it's all guesswork and bad advice to be honest.

well hush my mouth.
my finance wont save me any money by paying it back early, i thought most car finance deals would be the same. my mate bought on finance that he could pay back early and save on the interest,but he had to specifically ask for this when he bought the car. so i was speaking from the opinion that if they could save on the interest then they would have asked specifiacally for this when finance was arranged and would already know about it.

LandyAndy

Ring the finance company and ask for an early settlement cost. Compare that with the total of the remaining instalments.