Car Finance, to pay or not to pay??

Clare_85

Hi,

I took a 5 year loan with Black Horse in 2009 for a 6 month old Corsa. My montly payments have been £220 per month and the loan finishes in August 2014. I have recently been given some inheritence money so asked for an early settlement fee which was £5,170 but I didn't have the money in time to pay it (you get a two week window) and the figure now is £5,409. The settlement letter states this will save £916 which is what the first one said also which doesn't seem to make sense (not good with maths/interest etc though so it might be how it works) I need to double check with my statements but just wondering if anyone has done this before? My other option is to put the money in an account and set up a direct debit to pay the balance.

I guess I'm wanting some advice before I speak to them as there is nothing detailing the early payment penalty in the letter and wondered if anyone has experience of doing this? Will it really save me money?

Thanks

chris-j

sometimes most recent payment not shown in settlement figure if it sent through just a week or so before. Increase of £230 in settlement seems very high

bigadaj

What's the interest rate on the loan, you're very unlikely to get more in a savings count so would make sense in most cases to pay off early.

tonkinator

Any update on what rate is on the agreement?

Have you called them and asked them to explain it?

Can7ona

Hi All

I too, am considering taking out car finance, but have a few questions of my own before I do...

I already have a car on tick. I have £4000 left to pay.

Let's say for arguments sake, a dealership would offer me £3k for the car, in a part ex deal, would they pay the £1k off my existing finance and add it to a new finance deal?

Any help is appreciated

Cheers

bigadaj

No they wouldn't.