mrs j

christopher3

I am wanting to settle my car finance my settlement figure is 4,056,60 the original amount on hire purchase agreement is 10.912.25, i just dont know if it is the right thing to do or if i am being ripped off, that figure is with a 971.84 rebate worried about parting with that much money in case i am doing the wrong thing.

Thank you

Tixy

Its very difficult for anyone to be able to advise without knowing the details of your finance agreement (how much you borrowed, what APR, what term, how far in to the agreement you are, whether you have missed any payments etc).

But if the lender has given you that settlement figure I'd be very surprised if it was wrong.

christopher3

I am not saying their figure is wrong i am three years into the agreement and hav'nt missed any payments the apr is 24.1 the duration is for 60 months. The cash price was 6.833.25 hire purchase charges 3.789.00 ammount of credit 6.170.00 credit facility part a 145.00 credit facility part b135.00 and total charge for credit is 4.079.00.Repayment balance 10 912.25.Its just if i am doing the right thing to settle or give the car back and re buy i am just looking for the most economical outcome.
Thank you

Tixy

Its just if i am doing the right thing to settle or give the car back and re buy i am just looking for the most economical outcome.

How much is the car likely to be worth currently if you were to tru to sell it second hand (once you have paid off the finance)? More or less than £4056.60?

Does the car finance agreement give you the option to hand the vehicle back?

Do you still want the vehicle?

molerat

christopher3 wrote: »

I am not saying their figure is wrong i am three years into the agreement and hav'nt missed any payments the apr is 24.1 the duration is for 60 months. The cash price was 6.833.25 hire purchase charges 3.789.00 ammount of credit 6.170.00 credit facility part a 145.00 credit facility part b135.00 and total charge for credit is 4.079.00.Repayment balance 10 912.25.Its just if i am doing the right thing to settle or give the car back and re buy i am just looking for the most economical outcome.
Thank you

How much is the car worth, a lot less than £4056 so handing it back is the cheapest option. High APR loans over a long term on a relatively low value car is rarely a sensible option.

christopher3

the car is valued at dealer price 4460
private 4050
part ex 3870
trade price 3665.
yes it says in the agreement you can hand it back so i am just wanting the advice on the best thing to do as i have made so many mistakes in the past financially if i get the right advice i will then be able to decide if i want to keep it.

Thank you

Tixy

It sounds like it would cost you roughly the same amount to replace it with a comparable car bought privately.

Therefore if you like the car, it is in good order and you and want to keep it then paying off the finance seems like a sensible idea.

If you no longer need the car or if you need a different car then if you hand it back it saves you the hassle of trying to sell it yourself.