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Car Finance - paying off HP amount early
At the beginning of this month I purchased a brand new vehicle using mostly my own money plus £5k on hire purchase over 18 months at 7%. Without the HP I could not have made the purchase. With the HP I benefited from a manufacturers deposit contribution of £1k plus two services.
I am now fortunately( and unexpectedly ) in a position to pay off the £5k in full . It clearly makes financial sense to pay this off and not pay the 7% interest rate.
Does anyone have any experience, or know whether I will have to pay the dealer, or the finance company, the deposit contribution of £1k, and/or the free services, if I do indeed pay off the £5k hp?
Thanks
Comments
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I have taken manufacturer finance before to benefit from a finance contribution from them. I have then paid the finance off immediately afterwards. I have never been asked to repay any contribution I have received.
3 -
Same as above.
There is simply no mechanism to ask you to pay an additional amount for settling the finance early.1 -
There is always no additional cost for paying early.
ThanksNice Connection with you!-2 -
Do you have anything confirming the two services?
Check the qualification criteria.
I has a Dacia where as well as the contribution I received a warranty extension from 3 to 5 years. The salesman told me I had to pay for 3 months to qualify. The day after my third payment the warranty certificate was emailed to me. I then paid it off.1 -
I'm thinking of doing similar...
Does this still apply within the 14day cooling off period?
Or should I wait until after the cooling off period?0
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