When to make overpayments?

fatrab

Just a quick query (hopefully posted in the correct forum!)


I am about to start making overpayments to my car finance, it is HP (not PCP) and there are no penalties.


Does it matter what date I make the overpayment in relation to the DD date? And will an overpayment affect the DD if it's made too close to it? I appreciate every finance company will be slightly different but just wondered if there's a general rule of thumb.


Will be phoning them later in the month so will ask then, but any comments meantime would be appreciated.


Thanks

System

If you're making an overpayment to reduce the term it won't matter when you do it. If you were doing it to reduce the DD amounts then it would need to be more than 14 days before the DD date in order for it to change by the next payment as due to DD rules they have to give at least 14 days notice of a change of amount therefore cannot alter it within 14 days of the payment being due.

fatrab

Yes I'll be reducing the term. That's good to know, thanks

ElenePikkarainen

Different organizations have their own policies and we must read the policy of the organization before getting their services to get out of the upcoming trouble for us.

bengalknights

What does it state in the terms? Usually you can do it anytime

fatrab

It's pretty vague, I was just a bit concerned that if I made an overpayment of £1000 on the 26th of this month that they would then not take the following DD due on the 28th, and I would then be better waiting until after the DD comes out and has time to process. I would rather pay the overpayment as soon as I have the money available to avoid temptation!


I'm going to phone them at the end of the month so will clarify it then.


Thanks