Car Finance Early Repayment - What will the amount be?

GSMAnon

Hi all.

I bought a car at the end of February 2012 for £4,700. I paid a £2,000 deposit and took the remaining £2,700 on finance over a 24 month period with Barclay's Partner Finance.

The total amount repayable on the credit is, apparently, £3,481, consisting of:

1. The original sum of £2,700.00
2. Interest of £432.00 (that's 28.7% APR)
3. Credit Facility Fee of £150.00
4. Completion Fee of £199.00.

So that worked out at monthly payments of £130.50, but the first month was to also contain the credit facility fee (so £280.50 in total) and the final month was also to contain the completion fee (so £329.50) in total.

Thus far I've paid £541.50 through the following payments:

1. 30/03/2012 - £280.50
2. 01/05/2012 - £130.50
3. 30/05/2012 - £130.50

But, I'm expecting to come into a bit of money over the next few weeks and intend to pay off the car finance in full, probably before the next payment comes out at the end of June, and I'm just wondering if anybody could help me to calculate what the sum repayable at the point will be, and how the repayment process will generally work?

I was told by the car dealer that there would be no penalties involved in early repayments on this finance, and regarding early repayment, the agreement says:

"At any time before the final Repayment is due you have a right to pay off some or all that you owe us. You must give us verbal or written notice that you wish to make earlier repayment and, in the case of full settlement, must tell us the date on which you wish to settle.

... For full settlement we will send you a statement setting out the amount that you owe and the minimum rebate to which you are entitled under the Consumer Credit Act 1974."

What's this about minimum rebate?

Thanks in advance for your help!



Edit: Apparently the "Interest rate (per year)" is 8%.

Bibbs77

You can call up Barclays finance and on their automated system there is an option for a final settlement balance, you will get it instantly and they will also send it out to you in the post.

I did this a few months ago and was less that I thought it might have been.

Hope this helps

GSMAnon

Bibbs77 wrote: »

You can call up Barclays finance and on their automated system there is an option for a final settlement balance, you will get it instantly and they will also send it out to you in the post.

I did this a few months ago and was less that I thought it might have been.

Hope this helps

Excellent! Was unaware of this... just phoned and you're right, it's really easy.

My settlement figure was, apparently, £2563.10. So this is everything I owe them to pay it all off, including all fees, etc?

GSMAnon

Another thing: regarding my repayment amount, can anybody shed any light on how that was calculated?

i.e. £130.5 for 2 years to pay off £2,700 @ 8% / 28.7%APR.

I've tried it with all the standard formulae and online repayment calculators and I can't arrive at their numbers!