Blackhorse

johnpercival80

one too three four five

PeacefulWaters

Should they abolish interest when people stop paying for a bit?

johnpercival80

eight one ten

Edi81

Yes this is right. You borrowed £6k you needed to pay this back with interest.

If the sale proceeds from the car were applied to the loan then you should have had £1500 left to pay plus interest.

The early payments on any loan are primarily interest with a tiny part of capital being repaid.

johnpercival80

Edi81 wrote: »

Yes this is right. You borrowed £6k you needed to pay this back with interest.

If the sale proceeds from the car were applied to the loan then you should have had £1500 left to pay plus interest.

The early payments on any loan are primarily interest with a tiny part of capital being repaid.

Thanks for the reply Edi, i see what you mean regarding the early payments,

I've only got 6 months left on the payments and CCj so lesson learned

thanks again

Ebe_Scrooge

johnpercival80 wrote: »

I purchased a car off blackhorse around 9 years ago, for 6.000 was really high interest which i had to do, so with interest it was 12,000

I have a feeling we're not getting the full story here. For starters, to be having such a huge rate of interest would indicate that your finances were not in the best of health to start with.

Secondly, you didn't "have" to buy the car - especially if you were struggling with money, which it would appear that you were, given the apparent very high APR.

Thirdly, it depends on how the loan was structured. You need to dig out the original documents and see how the interest was applied. I know things have changed in recent years with regards to the laws surrounding front-loaded interest etc. But without knowing exactly what you signed up for, it's difficult to give meaningful advice.

Edi81

The rate may not be a pricing decision by Blackhorse. Often the car dealer would put in a rate that would get the payments just under the budget that a customer has. This could, depending on the circumstances, maximise their commission into the hundreds of pounds.

That's why, when buying a car to never give your budget in terms of monthly payments st the beginning.

Not sure about the front loading of interest but I thought that went at least 10 years ago.