Settling Car Finance (humour me, I'm thick!)

goodgirl80

Good Afternoon chaps,

Now I know none of you know my personal financial circumstances and whatnot. I guess I'm looking for a 'what would you do' kind of response, because what I've been offered seems a sensible option but not what I had planned for...

Anyway, dumb question... the finance company called me and said I can pay off my loan early which would save me about £100 overall. I could just, just about afford to scrape the final amount together next month, but this would be at the expense of paying anything to my other debt (which is owed to a friend, so I'm sure they would be flexible). If I get rid of the car finance, I can start chucking everything at the 'friend' debt. And save £100.00. I know it's not rocket science but I just thought I would canvas some educated opinions first. Thanks xx

dougyd

goodgirl80 wrote: »

Good Afternoon chaps,

Now I know none of you know my personal financial circumstances and whatnot. I guess I'm looking for a 'what would you do' kind of response, because what I've been offered seems a sensible option but not what I had planned for...

Anyway, dumb question... the finance company called me and said I can pay off my loan early which would save me about £100 overall. I could just, just about afford to scrape the final amount together next month, but this would be at the expense of paying anything to my other debt (which is owed to a friend, so I'm sure they would be flexible). If I get rid of the car finance, I can start chucking everything at the 'friend' debt. And save £100.00. I know it's not rocket science but I just thought I would canvas some educated opinions first. Thanks xx

What are the circumstances for the finance company making an early settlement offer? Are you in arrears? How much do you owe today?

goodgirl80

Hi Dougyd, thanks for responding, they have called me to say as I'm coming to the end of my agreement they have asked if i want to settle early. No arrears, never missed a payment. (This is the *dreaded* Welcome Finance by the way, if that makes a difference?). Balance: 728.00, Offer: 620-odd. Would love to get this gone but for some reason I feel worried because it's 'off-plan'

dougyd

Considering they made you the offer i'd be cheeky and make them a counter offer. Why not offer them £500? They can only say no.

Make sure whatever agreement you come to is backed up in writing and is stated as full and final settlement, just incase they ever come back and say you didn't settle the account.

I was in arrears with my car finance company at the start of the year and my agreement ended in Feb and was due to end with a balloon payment. I phoned them asking for an early settlement and they offered £2920 (approx) which would of saved me around £100.

They accepted a final offer of £2100 so a massive saving and really helped me out of a tough situation.

goodgirl80

Great advice, thank you xxx I think I will write to them, thanking them for the offer to settle and make my own offer. Cheeky

goodgirl80

Well, I've paid it off. At least that's out of the way now. :-)