Another early settlement question.

grelliott

Hey!
So, I got some money and decided to pay off the remainder of my car loan/finance. Rang up for a settlement figure here, are loan stats.

Amount of credit: £3345
Total amount payable: £4511.80
APR: 20.1
Duration 28months
27 payments of £145.10 then one final of £244.10
Advance payment of £350.

So, (27 * 145.1) + (1 * 244.1) = 4161.8

4161.8 - (18 * 145.1) = 1550 (Left to repay)

Loan was taken out on July 2009. Have made 18 payments of £145.10 and they gave me a settlement figure of £1475.71.

Is this figure correct? I thought it would be substantially less.
Did some research into the rule of 78, actuarial and pro rata methods of working out interest. Did calculations using formula on this site and some calculators and could not come up with their figure. Then woman on the phone told me I'd paid the majority of the interest off and the start of the loan so the rest is mainly the credit I owe. This sounds like the 78 rule to me, and to my understanding that was stopped in 2004?

Any input or help would be greatly appreciated.

Thanks for your time

The_Cappuccino_Kid

It sounds like a straight forward (ish) amortised loan.

If you run your figures through the calculator here it will give you a redemption figure of £1433.04 after 18 payments.

Sounds about right.

grelliott

Ah thanks, wanted to check it just incase they were trying to diddle me