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Car hire purchase

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hardquest
hardquest Posts: 11 Forumite
Name Dropper First Post Photogenic
Hi everyone, 

I have a quick question regarding car HP. I've bought my car on hight interest from one of the dealers because my credit history wasn't too good at the time, but now it is better and i was wondering if something can be done to reduce the repayment of it or settle it quicker by changing the car with the dealer etc? Or the only thing is to get a load and pay it off early? Thanks for any advise. 

Comments

  • Getting a loan at a lower rate than the dealer would be the cheapest way to finance the car.
    You could then always overpay (if possible) the loan. each month, to reduce it quicker.
  • Grumpy_chap
    Grumpy_chap Posts: 18,273 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    hardquest said:
    Hi everyone, 

    I have a quick question regarding car HP. I've bought my car on hight interest from one of the dealers because my credit history wasn't too good at the time, but now it is better and i was wondering if something can be done to reduce the repayment of it or settle it quicker by changing the car with the dealer etc? Or the only thing is to get a load and pay it off early? Thanks for any advise. 
    There are several options, and to assess them fully would need more information, particularly the thoughts expressed around exchanging the vehicle for another.

    The simplest way to save money is if you are able to make additional capital repayments and / or increase the monthly payment to reduce the loan quicker.

    Possibly the most MSE route would be to sell the car (does not have to be back to the original dealer), settle the finance, and then buy a car that you can afford to buy outright.  Would that allow you to achieve a car that meets your needs?
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