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Barclay Motor Finance Interest Query
Hi,
Hope this is in the right section, however I'm wondering if anyone can help.
I'm looking at purchasing a new car and was asked to get a final settlement figure on my current car/loan as it is classed as a Personal Loan (wasn't aware, thought it was a car finance part of Arnold Clark).
Where I'm really confused is the interest.
Amount borrowed was £12700.88, interest amount £2857.72. Taken over 60 months (so far made 42 payments).
I have 18 more payments (17 @ £259.30 and 1 @ £457.31 = £4865.41). I phoned up for a final payment figure and they quoted me £4676.25, a saving of only £189.16? However according to my paperwork it states if I wanted a final payment figure after 45 payments it is £293.69 per £1000 borrowed/£100 (12.7) borrowed therefore that would give me £3729.86 to settle, however in terms of 14 payments @ £259.30 and 1 final @ £457.31 that comes to £4087.51. Why would I save £357.65 interest, as opposed to paying earlier (3 months) yet only saving only half that amount?
I absolute hate interest with a passion as I never really understand how it works, but this just seems bizarre, unless I'm just not seeing something that is obvious.
Anyone?
FD
Hope this is in the right section, however I'm wondering if anyone can help.
I'm looking at purchasing a new car and was asked to get a final settlement figure on my current car/loan as it is classed as a Personal Loan (wasn't aware, thought it was a car finance part of Arnold Clark).
Where I'm really confused is the interest.
Amount borrowed was £12700.88, interest amount £2857.72. Taken over 60 months (so far made 42 payments).
I have 18 more payments (17 @ £259.30 and 1 @ £457.31 = £4865.41). I phoned up for a final payment figure and they quoted me £4676.25, a saving of only £189.16? However according to my paperwork it states if I wanted a final payment figure after 45 payments it is £293.69 per £1000 borrowed/£100 (12.7) borrowed therefore that would give me £3729.86 to settle, however in terms of 14 payments @ £259.30 and 1 final @ £457.31 that comes to £4087.51. Why would I save £357.65 interest, as opposed to paying earlier (3 months) yet only saving only half that amount?
I absolute hate interest with a passion as I never really understand how it works, but this just seems bizarre, unless I'm just not seeing something that is obvious.
Anyone?
FD
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