Paying car finance off early

lawrie28

Yes, a Flat Rate is a different way of expressing the interest rate, and doesn; include any fees, so when they say 6.5% flat, they really mena about 13% apr.You may find that there are early settlement penalties, but the only way to find out is to give them a call and ask.

danielleo

Hi, don't know if you'll ever get this given that your post is from 2 years ago, just thought I'd post and say the exact same thing happened to me this week. Feel completely misled by the dealers, and angry with myself. If only I'd read this (and other similar) post(s) before agreeing to it. I also got sucked in by the salespeople, can't believe they're allowed to mislead people like that.

Quick question, did you end up going ahead and using a lower rate unsecured loan to pay it off? That's what I'm now considering doing.

trp

danielleo wrote: »

Quick question, did you end up going ahead and using a lower rate unsecured loan to pay it off? That's what I'm now considering doing.

I'm in the process of doing this just now. Obtained an unsecured loan with an interest rate of 6.2% to pay off another loan organised through a dealership & saving myself close to £1000. Had i done it earlier i'd have saved a good chunk more. I will never finance through a dealer again... unless i can be assured it is an HP loan with the VT option.

danielleo

Great, you can do this then. Still feel really stupid. Can I ask where you've managed to get a loan at 6.2% from? Have you only paid for interest already accrued?