Pay off car finance?

Super_Whiskey

I have about £2.8k left on an HP agreement which is due to be paid off in the summer of 2020. I am considering paying it off in the next 6 months as I feel like I'm currently in a position where I can and it would be nice to not have the £130 a month leaving my account.



I appreciate it's not the most exciting of questions but just wanted some other advice before making a decision!

Unicorn_cottage

What do your T&C's say about paying the loan off early?

Super_Whiskey

Can't remember specifically but I asked for a settlement figure not too long ago and they deducted an amount for interest but they may have kept 30-60days on there?

[Deleted User]

Unless your savings are earning more than the loan rate, pay it off.

cryptomagic

Hello. I have enough cash for buying a new car. What do you think is it better to buy it with cash or to make a financial leasing contract? Thanks

BrassicWoman

cryptomagic wrote: »

Hello. I have enough cash for buying a new car. What do you think is it better to buy it with cash or to make a financial leasing contract? Thanks

well. that's not a spammy user name at all.

Fireflyaway

Pay it off definitely. The fewer monthly commitments the better and you will save some interest too.

Super_Whiskey

Thank you for the responses. Confirming my thoughts so I'll look in to do doing it over the next 2-3 months!

jonesMUFCforever

Super_Whiskey wrote: »

Thank you for the responses. Confirming my thoughts so I'll look in to do doing it over the next 2-3 months!

............and if you can continue to earmark the £130 for a savings pot - before long you will have a substantial amount for say an emergency or towards a new car or holiday.