Car hp early settlement figure query

James-may

Hi, I have a hp agreement with first response finance Im only 3 months into.
Car amount £4000
Paid £250 deposit
Interest £3270
Full amount £7050
Over 49 months.
Paid 2 payments of £143 so far.
I got a surprise bonus from work and am looking at getting this paid off asap.
I phoned first finance and they are saying £4000 to pay it off, I've queried it as I only borrowed £3750 and made £280 of payments, so I don't get how I owe £4000, I get it nearer £3464, but if course I'm not counting interest.
But I don't understand how 3 months of borrowing comes to around £550 (I figured £200 tops)
It may well be right and an accepted way of doing these things, but I don't want to pay this amount unless it's actually right.
Is there anyone who knows, does this sound right?
Thanks for any help.

[Deleted User]

What's the APR?

It's almost certainly correct, as you're three months into the interest, plus another twocmonths for early settlement, but have only made two payments.  Your calculation assumes you'll never be charged any interest on the loan.

James-may

Apr 39.9%
Thanks for the reply.
If it's right it's right, just don't want robbed lol

[Deleted User]

Christ. At that rate, get it paid off as soon as you can.

You weren't robbed, but you certainly chucked a lot of cash in the bin.

James-may

Deleted_User said:

Christ. At that rate, get it paid off as soon as you can.

You weren't robbed, but you certainly chucked a lot of cash in the bin.

Be cleared tomorrow.

foxy-stoat

James-may said:

Apr 39.9%
Thanks for the reply.
If it's right it's right, just don't want robbed lol

Duck me, worse than a credit card.....get your 4 large paid in chop chop.

Your first month you paid £18.31 off the capital, the rest was interest.....anyone thinks "renting is dead money" needs to look at this chap's credit argeement.

James-may

Just to quickly ask, will this help my credit rating, having a large debt and paying it off?.
Thanks for the help again

Grumpy_chap

Are you THE James May of Top Gear fame?  

[Deleted User]

James-may said:

Just to quickly ask, will this help my credit rating, having a large debt and paying it off?.

Having a loan means you don't have enough money.

Paying it off shows you are prepared to settle your debts.

That's the data that lenders will factor in.  There's no 'credit rating', just risk assessment.

foxy-stoat

Grumpy_chap said:

Are you THE James May of Top Gear fame?  

Doubtful, they wouldn't of paid £8,000 for a £4,000 car.

James-may

foxy-stoat said:

James-may said:

Apr 39.9%
Thanks for the reply.
If it's right it's right, just don't want robbed lol

Duck me, worse than a credit card.....get your 4 large paid in chop chop.

Your first month you paid £18.31 off the capital, the rest was interest.....anyone thinks "renting is dead money" needs to look at this chap's credit argeement.

That's why I was confused, the actual loan for the car was only £3750 and I paid in £286 that's why I didn't get why I still owed 4k, I thought it might have been £3800 or something, cant get my head round that.