Barclay Motor Finance Interest Query

fd1972uk

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