Car finance cancelation question.

mortgagenoob

So I have got a loan agreed with Rate Setter for 3%, (M&S charge an early repayment fee and I might sell the car before the 3 years is up). Should I wait and pay a months interest to Mercedes Finance or cancel my agreement with them and repay within my 14 day cooling off period? I'm still a little confused.

Many thanks

elle_may

Husband agreed a car finance of 12% 4yr's(could have killed him) I phoned up and asked for a settlement figure if we paid it off before the cooling off period. They emailed the amount and when to pay it by, a month.

I applied to Sainsbury's and got 3% over 3yr's instead of 4. So when the money was in our account i paid by bac's to car finance and was charged only that month's interest. In all it was it a 14 day turn around and saved us over a grand in interest. So i would say to repay it as soon as you can and cancel the agreement. And don't forget to get this in writing as they. olso in our case. said they would inform Experian it was settled.

AnotherJoe

mortgagenoob wrote: »

So I have got a loan agreed with Rate Setter for 3%, (M&S charge an early repayment fee and I might sell the car before the 3 years is up). Should I wait and pay a months interest to Mercedes Finance or cancel my agreement with them and repay within my 14 day cooling off period? I'm still a little confused.

Many thanks

SETTLE !!!

If you cancel, you are very likely to have to repay the £1950. If you settle, you arent.

Daveahare99

Settle I would say.

Depends on the loan amount but if its around 10k or something any saving on a personal loan rate would be cancelled out by having to likely pay the dealer contribution.

Hope it works out.