Early Repayment?!?

saverseaman

Why are you estimating how much you have to pay back within the period of time?

You don't have to pay any of it back.

00mrmark00

Hi all,

Many thanks for the replies.

The reason I am trying to estimate my costs are as follows:

We have a car that comes to the end of a PCP lease agreement on the 8th Jan 2010.

The balloon is £6,500 and the car is worth much more. However, the dealers we have been to so far, don't seem to want to give us what it's worth. Hence, we are going to buy it and then look to sell it privately within the next 6 - 12 months. A personal loan is the only way I can see of achieving this.

Is this madness??? Certainly looking at the figures quoted by Rob71, after 6 months of paying £160 I'll be approx £300 down in interest + the car will have depreciated even more.

I hate cars they just Haemorrhage cash...

00mrmark00

Rob71 wrote: »

Bit hard to say, but look at this loan calculator - it should be prefilled with the details you gave in your original post.

At 6 months the outstanding balance would be £5,807.86 - but I guess they'd charge you next months interest (£43.07), making a "grand" total of £5850.93.

Just reviewing the following site... This is exactly the info I was looking for... Many thanks.

My only decision now is, is to make the right one...

Rob71

00mrmark00 wrote: »

My only decision now is, is to make the right one...

Easier said than done, eh?

You should get a better price if you hold on a while - early summer is a good time to sell a car. As for trading it in or whatever, have you looked at what your car is fetching on ebay/autotrader? Just an idea... it might help you make your decision.

00mrmark00

Indeed...

I think I might take a chance on the loan, now I know what the interest penalties are. I call them penalties as I hate paying out money on loans...

In the meantime, I'll keep my eye out on the car market. Worst case, I can repay the loan at any point and pay the additional 30 days interest penalty. There is nothing in the T&C's about minimum loan period before early repayment. Not that I can see anyway. There was something about the loan repayment period being for more than 12 months, but I have chosen a 48 month term.

bryanbukowski

Maybe give A&L a call and explain what you want to this.
They'll confirm if it's the correct product for you or not.

Bear in mind that in a worse case scenario, that something they say does not come to fruition, if you've actually asked one of there advisors on a recorded call then it should help reclaim any penalties they may have incurred you (worst case scenraio of course!).

00mrmark00

bryanbukowski wrote: »

Maybe give A&L a call and explain what you want to this.
They'll confirm if it's the correct product for you or not.

Bear in mind that in a worse case scenario, that something they say does not come to fruition, if you've actually asked one of there advisors on a recorded call then it should help reclaim any penalties they may have incurred you (worst case scenraio of course!).

Good advice, thanks for that.