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Hire Purchase Car - Change to a different finance company?

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Hire Purchase Car - Change to a different finance company?

edited 30 November -1 at 1:00AM in Motoring
10 replies 658 views
davida1992davida1992 Forumite
21 posts
edited 30 November -1 at 1:00AM in Motoring
Hi all,
I am hoping to get some assistance here, a few days ago I purchase a used car from an Audi dealership and I decided to use their Hire Purchase finance to finance the car. I put down a £2,000 deposit and took the finance with them over 5 years for the remainder.

The hire purchase/loan is through Santander (Audi use them) and the loan amount was for approx £12,000. I was trying hard to get the monthly repayments down and they are currently sitting at an affordable amount, around £265 per month. I can afford this so it isn't really an issue.

My concern is that I have done some more research (I know it is a little late after I have purchased the car), but it seems that I am going to pay about £5k interest on the loan over 5 years, which seems a little excessive compared to what some other loans are offering online.

Is there anything I can essentially do. For example to refinance the Hire purchase with another company, have them pay off the existing loan with Santander and then hopefully that will result in less interest and lower repayments.

I do understand I may have made a mistake here, so I am just wondering what options I have moving forward from here if anything. Is this usually something people do?

I have never really taken any loans or HP on a car before so this is all new to me, I am good at managing my money, but I think I may be paying more than I should be here.

Help and support appreciated :)

Thanks very much in advance!!

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