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Options Scheme...(buying A Car)
SAZZLEEVANS
Posts: 126 Forumite
in Loans
Hi
I would love some advice if anyone can help. My partner is buying a car. He wants to pay for it in one year and has decided to go for the options scheme for 18 months which he will combine with saving the balance each month in a private account. Hes been told if he pays the outstanding finance off in less than 18 months he will get charged something like one months interest payment.
Whilst i was listening to the conversation with the salesman i noticed that he increase the "buy back" amount on the agreement so that my partner can pay more back to the loan company each month. This seemed ok at the time but something is ringing bells that he would be better off with the lower buy back price so he pays less interest to the loan company and gets more interest via his monthly savings.
Can anyone help?
Thank you.
Sarah
ps the sales guy offered another option which was to pay £395 which means if the car is written off in 3 years for any reason the you get the difference between what your insurance company pays out and what the car was bought for so you can start again.....is that an option worth considering??
I would love some advice if anyone can help. My partner is buying a car. He wants to pay for it in one year and has decided to go for the options scheme for 18 months which he will combine with saving the balance each month in a private account. Hes been told if he pays the outstanding finance off in less than 18 months he will get charged something like one months interest payment.
Whilst i was listening to the conversation with the salesman i noticed that he increase the "buy back" amount on the agreement so that my partner can pay more back to the loan company each month. This seemed ok at the time but something is ringing bells that he would be better off with the lower buy back price so he pays less interest to the loan company and gets more interest via his monthly savings.
Can anyone help?
Thank you.
Sarah
ps the sales guy offered another option which was to pay £395 which means if the car is written off in 3 years for any reason the you get the difference between what your insurance company pays out and what the car was bought for so you can start again.....is that an option worth considering??
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