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Over payments on Audi finance (HP) - advice needed please!
Hello
Would very much appreciate your advice.
I have been offered two ways of financing my new car - one personal loan with the bank and Audi finance. I've decided, I think, to go for Audi Finance - their APR is comparable and I get free servicing/warranty if I take their finance. The downside is that it is a HP arrangement so the car is not mine until the end of the term, but on balance I think the servicing is worth it as I obviously intend to make all the payments so don't anticipate any difficulty.
My personal circumstances are that I have three credit cards, two sub prime (limits £350 and £1k) with a zero balance, and one prime card (limit £4500) also with a zero balance. I use all three cards a little and pay off the balance in full. I have no CCJs or defaults. I have a current account in good standing with no overdraft. My credit history in the UK is limited, however, to about a year. Although I have used the cashplus credit builder to show a reasonable history, I was surprised to have these options. But the loan is affordable and having carefully considered my incomings and outgoings I've decided to commit to buying the car.
But I have a question about overpayments on audi finance. The dealer did not have available in the branch a copy of the terms and conditions. I have obviously not signed anything yet and will not do so without reading them in full. But the salesperson was unable to answer what the position would be in relation to overpayments.
If, like a personal loan from my bank, I choose to overpay (which I hope to do), will they only charge me interest on the remaining balance AFTER the overpayment has been taken into account? My bank also offered me a loan and their terms included a two month charge of interest on the amount of the overpayment.
I would like, for example, to be able to throw £1000 every now and again over the term of the loan when I'm able to - so as to reduce the total amount of interest I have to pay in the long term. I know this is possible with a personal loan but I am not sure if this can be done with Audi car finance. The dealership won't have an answer for me on this now until Monday which is why I'm asking if someone here might be able to guide me in the meantime. I will of course check the small print myself too but I'd like to know if someone can guide me towards an answer in the meantime as I'm impatient!
Thanks in anticipation.
Would very much appreciate your advice.
I have been offered two ways of financing my new car - one personal loan with the bank and Audi finance. I've decided, I think, to go for Audi Finance - their APR is comparable and I get free servicing/warranty if I take their finance. The downside is that it is a HP arrangement so the car is not mine until the end of the term, but on balance I think the servicing is worth it as I obviously intend to make all the payments so don't anticipate any difficulty.
My personal circumstances are that I have three credit cards, two sub prime (limits £350 and £1k) with a zero balance, and one prime card (limit £4500) also with a zero balance. I use all three cards a little and pay off the balance in full. I have no CCJs or defaults. I have a current account in good standing with no overdraft. My credit history in the UK is limited, however, to about a year. Although I have used the cashplus credit builder to show a reasonable history, I was surprised to have these options. But the loan is affordable and having carefully considered my incomings and outgoings I've decided to commit to buying the car.
But I have a question about overpayments on audi finance. The dealer did not have available in the branch a copy of the terms and conditions. I have obviously not signed anything yet and will not do so without reading them in full. But the salesperson was unable to answer what the position would be in relation to overpayments.
If, like a personal loan from my bank, I choose to overpay (which I hope to do), will they only charge me interest on the remaining balance AFTER the overpayment has been taken into account? My bank also offered me a loan and their terms included a two month charge of interest on the amount of the overpayment.
I would like, for example, to be able to throw £1000 every now and again over the term of the loan when I'm able to - so as to reduce the total amount of interest I have to pay in the long term. I know this is possible with a personal loan but I am not sure if this can be done with Audi car finance. The dealership won't have an answer for me on this now until Monday which is why I'm asking if someone here might be able to guide me in the meantime. I will of course check the small print myself too but I'd like to know if someone can guide me towards an answer in the meantime as I'm impatient!
Thanks in anticipation.
0
Comments
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free service doesn't exist, also have they approved you don't forget dealer apr is flat rate so double itDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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