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Paying off in full

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Paying off in full

3 replies 231 views
cfostercfoster Forumite
1 posts
MoneySaving Newbie
Hi,

If i got a loan for £4000 to pay off car finance and then sold my car and paid the loan off in full would i be charged the loan I've borrowed or the sum it says in "total repayment"? 
For eg. Would i pay £4000 or £6,500.
Thankyou in advance

Replies

  • DrEskimoDrEskimo Forumite
    1K posts
    1,000 Posts Second Anniversary
    ✭✭✭
    You would pay the capital and only the interest for the time you have had the loan. 

    Also check if there is an early repayment fee. It's common for lenders to charge 58 days of interest upon early settlement. 
  • ncassncass Forumite
    14 posts
    10 Posts
    MoneySaving Newbie
    Hi, depending on the lender if you have an online account you may be able to log in and get your settlement figure (i've got a car loan through Hitatchi Capital and can view the figure), if not just give them a call and ask
  • Nebulous2Nebulous2 Forumite
    2.7K posts
    Sixth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Why do you need a loan to pay off the finance? 

    You may be able to sell the car to someone who will clear the finance as part of the deal, if the finance is secured on the car.
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