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Advantage finance

edited 30 November -1 at 1:00AM in Loans
18 replies 932 views
messi2504messi2504 Forumite
72 posts
edited 30 November -1 at 1:00AM in Loans
I am after some advice please.

I bought a car in 2016 for £18000, i paid an £8000 deposit and the rest was borrowed from Advantage finance, it was a Hire Purchase agreement over 5 years.

Unfortunately i was in an accident and my car has now been declared a total loss by my insurer.

I have been asked to get a settlement figure from Advantage finance and it is just over £6800. I have had my agreement with Advantage finance since August 2016 i have paid in excess of £11400 in payments.

After just over 3 years of paying on my agreement i was in total disbelief that advantage finance would quote such a big figure for early settlement.

I would have thought that after 3 years of paying on a 5 year deal the owed amount in a lump sum would be closer to or less than 50% of the original loan value.

I would like some advice on this if i can complain to any relevant body or if i have no chance.
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Replies

  • boo_starboo_star Forumite
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    What's the APR?
  • BoGoFBoGoF Forumite
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    According to their website the representative APR is 29.26%!......ouch. OP must have been desperate for a car.
  • DrEskimoDrEskimo Forumite
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    At that rate, and with 36 payments I estimate your settlement around the £6k mark.

    Are there also early settlement fees?

    Did you take out any GAP insurance?
  • ~Brock~~Brock~ Forumite
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    More information needed before anyone can give accurate advice:

    Exactly how many payments have been made so far?
    Have there been any arrears?
    Are there any other fees on the agreement?
    How much exactly is the settlement figure and when is it valid until?

    Generally speaking settlement figures, calculated in accordance with the relevant legislation, can result in higher than expected amounts especially on longer term agreements.

    Any complaint should be directed firstly to the lender themselves so that their own response can be considered before taking it further.
  • The settlement figure sounds about right on such a high interest loan. In the early years of repayment you are paying mostly interest; it is only in the final year or two that substantial inroads are made into the principal. I hope the OP had GAP insurance.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • ~Brock~ wrote: »
    More information needed before anyone can give accurate advice:

    Exactly how many payments have been made so far?
    Have there been any arrears?
    Are there any other fees on the agreement?
    How much exactly is the settlement figure and when is it valid until?

    Generally speaking settlement figures, calculated in accordance with the relevant legislation, can result in higher than expected amounts especially on longer term agreements.

    Any complaint should be directed firstly to the lender themselves so that their own response can be considered before taking it further.


    So far 35 payments have been made. No arrears i have never missed a payment. Settlement figure is £6820.11 this is valid until 5th of September.
  • DrEskimoDrEskimo Forumite
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    messi2504 wrote: »
    So far 35 payments have been made. No arrears i have never missed a payment. Settlement figure is £6820.11 this is valid until 5th of September.

    What's the APR and what's the monthly amount?
  • DrEskimo wrote: »
    What's the APR and what's the monthly amount?

    ASorry that is £321 and the APR is 29%
  • DrEskimoDrEskimo Forumite
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    messi2504 wrote: »
    ASorry that is £321 and the APR is 29%

    Do your finance documents mention any early repayment fees, or optional purchase fees?
  • edited 19 August 2019 at 12:29PM
    messi2504messi2504 Forumite
    72 posts
    edited 19 August 2019 at 12:29PM
    I got very little documentation from Advantage, it was all done via Zuto. Advatange didn't give me any details or breakdown on the loan until i had this accident it was the only time i got a breakdown on the figures.

    Just tracing old emails and my APR was actually 33.57%
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