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Car loan from moneybarn help please

Hi,

I took a 4 year car loan out from moneybarn, this was due to a poor credit score at the time.
I am about half way through paying and have about 8k left to pay.
I have recently come into some money and am considering paying the car loan off completely.
My question is what kind of reduction will I get if I pay it off early? Just would like an idea before I ring them as I have read on here they are less than honourable on occasion. Thanks for any help

Comments

  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 10 February 2014 at 7:25PM
    I dont think anyone can tell you what kind of reduction you would get by pay it off early.
  • Your agreement should say what happens if you pay early, I would think.

    Get a settlement quote in writing, that way you have evidence if they mess you about.

    HB
    :beer:
  • Blackhorse car finance through carshop requires the full amount payable to be payed even if you repay early - so for example, I recently took out finance through them for £12500, but the total amount payable was £19000. On reading the Terms and conditions, the £19k was payable EVEN IF I made overpayments. They essentially lend you £19k to cover the car and interest and their costs, you pay this back regardless. I have since withdrawn from this agreement during cooling off. My point is, you may not get any interest refunded if you repay early.

    These private finance companies are in it to make as much money out of you as they can. Banks tend to be more lenient if you repay early. Certainly the loan I took out from Santander states in the terms and conditions that if I overpay, they will recalculate any interest on the account.
    Could HAVE. Should HAVE. Would HAVE. Not OF.
  • antrobus
    antrobus Posts: 17,386 Forumite
    .....My question is what kind of reduction will I get if I pay it off early? Just would like an idea before I ring them as I have read on here they are less than honourable on occasion. ...

    Credit - early settlement explained
    http://www.tradingstandards.gov.uk/cgi-bin/brighton-hove/con1item.cgi?file=*adv0030-1011.txt

    The anount of the reduction due for early settlement will be specified by law.
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