Paying off car finance

Flyinghigh

Good evening i am after some help i currently owe £15003 on my car my contracted payments are £340 but i am paying £400 a month at the moment i am trying to pay it off as quick as possible with weekly overpayments my apr is 35% can someone help me work out how much interest i will save making these overpayments.

NottinghamKnight

A lot. How did you sign up to a deal at 35% apr? I think your payments are less than the interest accruing currently, even at the increased sum. Can you sell the car and buy something cheaper at a better rate?

Flyinghigh

NottinghamKnight said:

A lot. How did you sign up to a deal at 35% apr? I think your payments are less than the interest accruing currently, even at the increased sum. Can you sell the car and buy something cheaper at a better rate?

Thank you for your reply, So the agreement says 18% per annum if that makes things any simpler? 

molerat

Each of those £60 overpayments will save you £1.75 per month for the remainder of the loan period so the savings soon add up.

NottinghamKnight

What was the initial sum borrowed, the 'fixed rate' of 18% is pretty much half the apr which is about right for a declining balance, what is the term and when did it start. I think looking to sell the car, pay off what you can and arrange payment for the balance would be a better outcome.

Flyinghigh

NottinghamKnight said:

What was the initial sum borrowed, the 'fixed rate' of 18% is pretty much half the apr which is about right for a declining balance, what is the term and when did it start. I think looking to sell the car, pay off what you can and arrange payment for the balance would be a better outcome.

Thank you for your help, i bought the car last august the purchase price was £10k the agreement says £8100.34 it is a 54 month agreement 

ontheroad1970

sweetsand said:

Flyinghigh said:

Good evening i am after some help i currently owe £15003 on my car my contracted payments are £340 but i am paying £400 a month at the moment i am trying to pay it off as quick as possible with weekly overpayments my apr is 35% can someone help me work out how much interest i will save making these overpayments.

Hi OP
Not the same but when we last had a mortgage around when the net was taking off, we rang the mortgae co and they advised us.
As I have never took out a loan for a car but I'm sure it works out the same, there is an easy to use mortgae calulator where you can type in the APR and payments over different timescales if you wish

Do you know the difference between APR and flat rate interest?   

Oh and if you were feeling philanthropic you'd stop bragging about your wealth when others are struggling.  If the OP is paying 35% APR it basically means they could only get pretty much loan shark rates for finance.  So stop going on about how you buy several cars every year without finance.  Bully for you.  Stop rubbing other people's nose in it.  You are neither a philanthropist nor respected.  

sweetsand

molerat said:

Each of those £60 overpayments will save you £1.75 per month for the remainder of the loan period so the savings soon add up.

Hi
Is there a calulator for that ie one like I talked about re mortgages where one can easily work out how long you take to repay the loan over x/y/and z number of years and easily change the interest rates as well?
TIA

sweetsand

Btw OP, you may want to try the finance section/forum.
ATB

AdrianC

Flyinghigh said:

NottinghamKnight said:

What was the initial sum borrowed, the 'fixed rate' of 18% is pretty much half the apr which is about right for a declining balance, what is the term and when did it start. I think looking to sell the car, pay off what you can and arrange payment for the balance would be a better outcome.

Thank you for your help, i bought the car last august the purchase price was £10k the agreement says £8100.34 it is a 54 month agreement 

That all sounds about right.
You're paying 18% of £10k interest per year - so over the 4.5yrs, you're paying £8,100 interest on top of the £10k you borrowed. That works out to an APR on the amount you owe of 36%.

That is... not cheap. Pay it off as soon as you possibly can, if not sooner.

If you pay it off after 3.5yrs instead of the contracted 4.5yrs, you'll save 18% of £10k = £1,800. Every month early you can pay it off will save you £150.

Or, to turn it around slightly, every single one of your £340 payments is paying £150 interest and £190 principal.
Pay off another £60/mo for three months, and you're paying it off (roughly) a month earlier - that £60 extra saves you £50 in interest...

Flyinghigh

AdrianC said:

Flyinghigh said:

NottinghamKnight said:

What was the initial sum borrowed, the 'fixed rate' of 18% is pretty much half the apr which is about right for a declining balance, what is the term and when did it start. I think looking to sell the car, pay off what you can and arrange payment for the balance would be a better outcome.

Thank you for your help, i bought the car last august the purchase price was £10k the agreement says £8100.34 it is a 54 month agreement 

That all sounds about right.
You're paying 18% of £10k interest per year - so over the 4.5yrs, you're paying £8,100 interest on top of the £10k you borrowed. That works out to an APR on the amount you owe of 36%.

That is... not cheap. Pay it off as soon as you possibly can, if not sooner.

If you pay it off after 3.5yrs instead of the contracted 4.5yrs, you'll save 18% of £10k = £1,800. Every month early you can pay it off will save you £150.

Or, to turn it around slightly, every single one of your £340 payments is paying £150 interest and £190 principal.
Pay off another £60/mo for three months, and you're paying it off (roughly) a month earlier - that £60 extra saves you £50 in interest...

Thank you so much for your reply