Car loan - are the payments a month in advance etc?

willstewart

Got a car from Toyota and the financing was through Santander.
The payment normally comes off on the 1st of the month.

At the weekend, I traded in my car for a newer model and now have a new loan for this car. The final payment for the old car was covered so is no longer mine.

Checked my bank account this morning and the normal payment for the old car has been taken. I know it's short notice to stop things, but should this payment have been taken? (Probably similar to paying off a credit card, and then they still take the DD for the min payment)
I was under the impression that that payment would have been for the 1st Nov-30th Nov period and since I don't have the vehicle any more and it's been paid for, should be entitled to it back.

Is this correct?

Fiddlestick

willstewart wrote: »

I was under the impression that that payment would have been for the 1st Nov-30th Nov period and since I don't have the vehicle any more and it's been paid for, should be entitled to it back.

Contact the lender and ask when they received the settlement money from the new finance company.

It may be that if it was only processed at the weekend then logically they processed the Direct Debit before they were in receipt of funds.

If so, they will probably return the money if you call them and ask them to clarify the situation.

BenL

It is all a bit soon for the old finance to be settled and records updated etc. The Direct Debit would have been set in motion a couple of working days previously as well.

There are also reports of dealerships holding onto the money for settling other finance for a short while in order to improve their own cash flow so it might take another week or 2 for the payment to be made to the old finance.

Ben

Daxx

When I traded in my car I was told by the garage that it could take upto 14 days for them to settle the loan, as they need to confirm the settlement figure themselves and then send the cheque off.

In the meantime the old finance company took my monthly payment.

I was able to call up as soon as they had recieved the settlement and they refunded this straight back to my account.

Your situation sounds the same, so just chase Santander and when they have recieved the final settlement ask them to refund the payment you made...simple.