Car finance settlement figure

Adam84

Morning all.

New user to the forum so please go easy on me

i was wondering if any of you out there had an experience of the situation im currently in?

i have a car on finance which i took out over 60 months...im currently about 16 months into this agreement. Due to me now looking to buy a house i need out so i can borrow more/ be able to manage myself with a lot more ease each month...

This is my current situation..

I owe £9100
Finance company deductions £1100
My Settlement is £8000

A very kind family member has offered to give me £3000 towards paying my car off however im not sure if im best paying £3000 into my settlement figure and put the rest on my 0% credit card....OR contact my finance company and make an over payment of £3000 then request a new settlement figure? im thinking if i make an over payment instead of putting it into my settlement figure i might save a bit on interest? (request another settlement figure in a months time) and hopefully my new figure would be lower than £5000 due to the outstanding balance being less than the £9100 (basing it on £6100).

If anyone could help me hat would be brilliant...i hope ive not tied you all in knots!

Adam :beer:

Money_Rollercoaster

The settlement figure is based on you settling the whole debt, not part of it. You'd have to ask the finance company about paying off a lump sum and if they say you can, make sure you have it logged as an overpayment, not an advance payment.

chanz4

even if you move to a 0%, the debt will still be there

foxy-stoat

Your better off finding out when you reach your halfway point and VTing it, using the magic £3000 if necessary.

You will have to buy a cheaper car until your mortgage is sorted out though.