paying off car finance early

pinkladyof66

please can anyone offer advice

if i was to take a car out on finance of £2000 over 24 months with interest of around £303.32 if i was to then find the £2000 the following month to pay off in full and only had loan 1 month anyone know how much interest i am looking to pay please.

Has anyone had any experience of doing this thanks.

Tixy

Are you talking about HP (secured car finance) or a bank loan?

Usually the early settlement fee is 1 months interest. Looks like about 14% interest which would seem to indicate a cost of around £25 interest for the first month.

But you need to check the agreement for details of fees etc, there are often final fees on HP agreements to formally hand the car over to you, you'd still need to pay these which could rack the cost up - could easily be £150 or so just for this.

If its likely you'll have the cash in a month it would seem to make sense to wait a month to purchase the car.