Settling car finance / taking out new agreement

jb1305

Hi. I'm about to trade in my old car and collect a new one on Monday. The old car has finance on it which the company I'm buying the new car from say they will settle. We've obtained a settlement figure and they said they are going to issue and send off a cheque to the old finance company this week. They advised me to cancel my direct debit. I'm not so sure on this one. The direct debit is due to come out on Friday 8th and I'm not convinced that a few days is enough time for them to issue and post a cheque to settle the finance.

Would it be best to leave the direct debit in place? I'm assuming I'd be able to claim this payment back from the old finance company as the settlement figure would be based on the amount owing before this direct debit is taken on Friday.

I'd appreciate any advice.

CLAPTON

absolutely yes; let the DD go through and haggle about it afterwards.
In any event the 'settlement' figure is usually valid for a month or so and may be based on the asumption that the next payments goes through as normal.

the last thing you need is a later payment showing on your credit record.