Car Loan - Moan

MIRRY_2

We took out a car loan 12 months ago of £8550, dont know the interest rate but its HIGH.

we just rang the loan company to ask how much is the settlement price and they said £7580 , well I dont know if this is good or not ?

We have mananged to save £4500 and we dont know if its wise to open a new loan of £3000 to pay off the larger loan ?

Or would this just mean more settlement fees ect?
Also if we keep saving we could pay it off in the new year.

This forum is so nice to share our problems, thanks for reading

CLAPTON

how much are you paying each month
how many months payments have you already made
how many months payment have you still to make


if you opened as new loan what APR would it have, what payments would be due and for how many months

MIRRY_2

HI CLAPTON, as you can tell I am not clued up on this sort of thing.

Ok the details are as follows.
term of agreement 43 months.
We have paid £209.01 a month for the past 12 months.
Apr: 14.8 %

instalments....

1 £344.01 (1 month from the date of this agreement,and then)
41 £209.01 (on the corresponding day each month thereafter)
1 £2358.75 (1 month after the last instalment specified above)


Ive been suffering from anxiety and panic attacks lately and am finding work more and more difficult ,so really need to get rid of this loan.
Thanks for looking.

tyllwyd

Your originally agreed to pay
£344.01 plus £8569.41 plus £2358.75 = £11272.17

At the moment, you have paid £344.01 plus £2508.12 (ie initial payment plus 12 payments of 209.01)

You have been given a settlement figure of £7580, which gives a total of £10,432.01.

So you would only save £840 by paying early.

And if you took out a new loan, you would have to pay interest on that loan -which might well turn out to be more than £840.

Please check my figures because I am hopeless with calculators! but if I am right, then you have paid the interest on the loan up front, and there is very little to be gained by repaying early.

MIRRY_2

Thanks Tyllwyd , does this mean that for every £209.01 I pay
It will come directly off the balance from now on ?