Really confused!

emmam202

Hi

I am trying to find a 20k loan without any penalties for early repayment. Sounded easy to start with but now I'm baffled. Egg tell me they charge nothing, Virgin say they don't but Goldfish who advertis on their website that they don't charge say that everyone charges 28 days interest because the consumer credit act says they can. They say that the companies who say they don't charge a fee are actually saying that they don't charge a fee on top of the 28 days interest. Is this right?:mad:

Rafter

Egg and Northern rock do flexible loans that allow repayment without penalty. Most providers do have a 1 month interest penalty for early repayment.

Goldfish seem to be talking rubbish and their website is misleading if they are advertising a penalty fee loan then charging anyway.

R.

MABLE

emmam202 wrote: »

Hi

I am trying to find a 20k loan without any penalties for early repayment. Sounded easy to start with but now I'm baffled. Egg tell me they charge nothing, Virgin say they don't but Goldfish who advertis on their website that they don't charge say that everyone charges 28 days interest because the consumer credit act says they can. They say that the companies who say they don't charge a fee are actually saying that they don't charge a fee on top of the 28 days interest. Is this right?:mad:

Go for Lloyds. The trick is to pay off most of balance and leave about £1.00 outstanding. Then ask them for a settlement figure this is based on the amount of £1.00. The penalty will only be a few pounds. I know it works because I have tried this a few times.

juliusceasor

Is there anyway to do this with vehicle finance schemes, using the finance company to get the vehicle cheaper and repaying within a month if you have the cash?

As you are allowed to cancel within 14 days any agreement, would the finance company really take back the vehicle with all the extras added on rather than take the cash?

jonesMUFCforever

juliusceasor wrote: »

Is there anyway to do this with vehicle finance schemes, using the finance company to get the vehicle cheaper and repaying within a month if you have the cash?

As you are allowed to cancel within 14 days any agreement, would the finance company really take back the vehicle with all the extras added on rather than take the cash?

No IMO. They are too clever for that. Unless things have changed they used to front load the interest as well so it made no odds (and very expensive for you!) if if you pay back within a very short timescale.

If you are confident that you will have funds to clear shortly have you approached your bank for an overdraft?

Turtle

Things have changed. Front loaded interest loans (rule of 78) were demised in favour of daily accrual loans in 2005.

juliusceasor

ejones999 wrote: »

If you are confident that you will have funds to clear shortly have you approached your bank for an overdraft?

I do have the funds available cash to purchase the vehicle, what I can't do is get the discount more than the 10% the dealer is offering. A finance company can get at least another 10% if not more in my experience.

Reference the rule 78 :

Does that apply to lease purchase, hire purchase style agreements?

Also as I stated all credit agreements are subject to a 14 day cooling off period. Surely if I purchase an 18k vehicle with added extra options (harder to sell perhaps) and then I decide to cancel the finance agreement will I;
a) be expected to pay the non discounted price or return the vehicle
....(i) how likely is this? they would still have a vehicle they would need to sell to someone?
b) just expected to pay the amount of the purchase in full immediately
C) if a deposit is paid is this forfeited in some way if you cancel the finance and is that how they recover their lost interest/ discount?

Thirdly I had read on here (somewhere I thought) but I couldn't find it again that it is possible to repay the finance early but to repay all but a small amount and then keep paying say £10 a month for the period over which the finance is over, e.g 3 years.

Fourthly when does a finance agreement start (this relates to (c) above) from moment of order or delivery of vehicle? I know the vehicle I wish to purchase is 2 months wait from order for delivery from factory.

and finally,
There is no cooling off period purchasing as business, but is the option to repay all but a small amount still viable, as in third point above?
Thank you.

juliusceasor

As I have rather gone off topic?