Settlement on Car Finance is Going up each month

PinkNoam

My partner and I are leaving the UK on Monday permanently and we've been trying to sort out outstanding car finance.

We've got a buyer for the car and were going to pay the difference to settle the finance ourselves.

We got a settlement figure from Renault Finance last month on 07/07/15 which was £12700.

Since then, we've made a further monthly payment of £208 and then asked for a new settlement figure.

They're now saying they want £13,093 to settle it.

I don't understand why it would go up by almost £400 in just 1 month after we'd paid a further £208 off the balance.

I asked for details on how they've worked out the figures but all they're saying is that it's all in the contract. I've been through the contract and there are no details of the calculations in there. I called them back and they're telling me I need to speak to a financial advisor so I can 'understand the maths involved' . This really annoyed me, I am a systems analyst, I spend all day writing algorithms so there's nothing wrong with my maths!

Basically, they're refusing to send me the formulas they use to calculate the settlement and I can't help feeling that we're being ripped off. Unfortunately, as I say, we're leaving the country in less than a week so I don't know what to do.

Any advice?

Thanks.

dannyrst

Ring them back saying you spoke to a financial adviser and he advised that you retrieve the calculation from them.

harveybobbles

If you were leaving the country then you should have sorted the car a long time ago and just be using a £500 scrapper until the day you leave.

Phone up and hopefully speak to someone else who will give you a figure in your favour.

Hoof_Hearted

Tell them that you are emigrating and that if they don't co-operate they will end up whistling for their money.

colino

I'm guessing you have already told them you are leaving the country and while not acting illegally, they certainly are in no rush to take up phone time explaining (what you will already have) the contract. I'm sure when you settle up and they discover an overpayment they will expedite a cheque to your forwarding address.

LandyAndy

Funny how when people are given two different figures they always assume the lower one is right. It is possible that the £12,700 was a mistake.


Surely a few minutes with a spread sheet that calculates the capital and interest repayments on a loan would identify the remaining capital element and then you would have to add any penalties as given in the contract?

PinkNoam

Had we found out ages ago we were leaving, we would have. As it stands we only got confirmation 2 weeks ago and have been trying to sort this since.

Mercdriver

Hoof_Hearted wrote: »

Tell them that you are emigrating and that if they don't co-operate they will end up whistling for their money.

Not really sensible advice, since OP is selling the car. What happens to the buyer when car is repossessed?

skintpaul

Any rebate on interest will reduce over life of a loan, though I am surprised the settlement figure has gone up..

Can you ask for a breakdown of the amount? Consumer Credit Act may have more..