Early repayment charges, car finance - Please help

FTBSOS

Hi guys, I have recently bought a car on finance for £15,890 with a £5100 deposit taking it down to £10,790.

The actual APR is 12.4% I bought the car from lancaster jaguar. The car is on HP which is something i just realized can I possibly change it over to PCP, I haven't had the car yet.

Finance is for 60 months.

I plan to clear the full amount off with 12 - 15 months.

I was told that there won't be any early repayment charges should i want to clear it off within my time frame of 12 - 15 months.

Is there something in my paperwork that shows this is the case?

Many thanks

Sedge123

Ummm only you have the paperwork in your possession. Perhaps you should read it in full?

Cornucopia

FTBSOS wrote: »

Finance is for 60 months.

I plan to clear the full amount off with 12 - 15 months.

60 months (5 years) is a long duration for a car credit agreement. (The longer the duration, the greater the amount of interest).

Whilst there may not be explicit charges, there probably will be penalties of some kind that compensate the lender for the interest you won't be paying. Or it may be represented as a rebate on interest payable.

If you can, make the duration shorter, if the plan is to pay it off early. Also, you could probably save on the rate by shopping around.

FTBSOS

Hi guys, I had big argument with my brother about buying the car, think's it's a waste of money which is a load of tosh, the value of these cars holds very well and it's the car, I really, really want.

Anyway, I paid a £100 non refund deposit, i don't care about getting it back, now I can withdraw my agreement from the higher purchase right. I signed for it on the 28th december. so I can cancel can't i?

forgotmyname

They only appear to hold their value when looking at Jaguar dealer forecourt prices.

Ask any local dealer what they would give you as a part ex price and i bet most if not all of your £5000 deposit will be lost.

But if its a car you want and can genuinely afford to run it then why not.

FTBSOS

forgotmyname wrote: »

They only appear to hold their value when looking at Jaguar dealer forecourt prices.

Ask any local dealer what they would give you as a part ex price and i bet most if not all of your £5000 deposit will be lost.

But if its a car you want and can genuinely afford to run it then why not.

The good thing is I only paid £100.00 for it, I so even if i lose that, it's not too bad i guess. Tommorrow will be 7 days, so I should be fine right?

closed

Any contract would have failed at the first hurdle, a credit and affordability check

Pipz

You normally have 14 days from 'a date' to withdraw from an agreement of this sort, the exact date should be specified in your paperwork.

When I withdrew from my HP agreement there were two options:

If the finance company had paid for the car then I would make arrangements to to pay the finance company the financed amount.

If they hadn't I would make arrangements with the dealer direct (either pay them by another means or not purchase the vehicle forfeiting the deposit used to secure it).

Your circumstances will vary, hopefully you've received some paperwork which will have the specifics.

Apples2

I was going to agree with your Brother that paying such a price for a Jag is a bad idea, until I read the part where you "really, really want" it.

Paying £100 holding deposit does not mean you have been accepted for finance at all. It just means the dealer won't sell it whilst your finance application goes through.

The rate is not a good rate, you won't realise this for some time yet, way after the point at which you say you would have cleared it all (assuming you do get accepted).

At just 20 years of age you should really learn what are priorities in life (it isn't paying huge sums you don't have for disposable objects, cars are not investments)

I like this reply to one of your previous posts

What about the 17K loan you tried for already, or the mortgages you have been declined for.
The fluctuating salary you seem to have, and the £1K you spend in the coop every month.

read the OPs other threads for tales of woe and tales that Jackanory would be proud of.

ViolaLass

FTBSOS wrote: »

Is there something in my paperwork that shows this is the case?

Yes. Page 5, line 4 of the small print.

Or you could just read it yourself.