Car finance issue

overthehylts

I took out a car finance deal in feb 2020 for £10,000 apr 34.9% with repayments of £327.84

i paid £4000.00 initially meaning the the amount now owed to them was i believe £8400  .. i just found out the agreement was due to come to a end on the 1st june 2022 but they have continued to take funds from my account till current date and informed me the agreement runs till 2025 !!!

in total i have paid them close to 16,800 since i have taken out this agreement with them 

some advise on this matter would be appreciated 

Brie

have you missed any payments at any point?

And i must say you're numbers don't make too much sense to me.  Did the car cost £10k and you paid £4k down?  Or did it cost £14k so £4k deposit and £10k total on finance?

DE_612183

Did you pay the £4k before the £10 loan?

£327 for 3 years is only £11,800 so I'd expect to be paying a lot more than that.

You say the apr is 35% - that is really high - it means the amount you pay will be over double of what you borrowed over 3 years - if it's over 5 it's even more.
 

Brie

Running the numbers.....

If the car cost £10k & you paid a £4k deposit then paying £327.84 a month at 34.9% would mean you paid the whole amount off by about April 2022 with you having paid a total of about £8850 (plus £4k = £12850)

If the car cost £14k & you paid a £4k deposit then paying £327.84 a month at 34.9% would mean you paid the whole amount off by about May 2026 with you having paid a total of about £24915 (plus £4k = £28915)

So the first scenario ties in to what you believe you may have signed up for and the second look wrong in so many ways.

CliveOfIndia

overthehylts said:

i just found out the agreement was due to come to a end on the 1st june 2022 but they have continued to take funds from my account till current date and informed me the agreement runs till 2025 !!!

So how long was the agreement you signed up for?  Check the contract you signed - was it scheduled to end in June 2022 or 2025?  Or have the original terms of the loan been extended at some point for some reason - if so, why?

34.9% is a horrendous APR, that's about on par with what most mainstream credit cards would charge!

overthehylts said:

some advise on this matter would be appreciated 

The first thing you need to do is dig out the original contract you signed, read it carefully and tell us what the original terms were, in particular the timespan over which the loan was to be repaid.

Secondly, check all correspondence to see whether any of the original terms have been amended at some point.  Once you know the facts, you can start working out some figures.

overthehylts

Thanks for coming back to me 

the initial term was for 5 years i paid the 4k about a week after i signed the agreement I believe the reason the apr is so high is because i have a iva 

overthehylts

I have received a statement informing me i have paid just over 16k i also have a letter from the company infoming me the agreement ran till june 2022 due to be paying the 4k i owed them just over 8k 

MattMattMattUK

overthehylts said:

Thanks for coming back to me 

the initial term was for 5 years i paid the 4k about a week after i signed the agreement I believe the reason the apr is so high is because i have a iva 

Just for clarity, you borrowed £10,000, then paid off £4,000 within a few weeks, theoretically leaving a balance of £6,000? Does the £4,000 actually show on your account/statements?

What does the contract say on early repayment, any allowances or penalties? Was interest on the £10,000 front loaded or calculated on a rolling monthly basis?

overthehylts

MattMattMattUK said:

overthehylts said:

Thanks for coming back to me 

the initial term was for 5 years i paid the 4k about a week after i signed the agreement I believe the reason the apr is so high is because i have a iva 

Just for clarity, you borrowed £10,000, then paid off £4,000 within a few weeks, theoretically leaving a balance of £6,000? What does the contract say on early repayment, any allowances or penalties? Was interest on the £10,000 front loaded or calculated on a rolling monthly basis?

On early repayment it says the agreed amount doesnt change so i keep paying £327.84 but the time of paying of the loan decreases i believe the interest was calculated on a rolling monthly basis

MattMattMattUK

overthehylts said:

MattMattMattUK said:

overthehylts said:

Thanks for coming back to me 

the initial term was for 5 years i paid the 4k about a week after i signed the agreement I believe the reason the apr is so high is because i have a iva 

Just for clarity, you borrowed £10,000, then paid off £4,000 within a few weeks, theoretically leaving a balance of £6,000? What does the contract say on early repayment, any allowances or penalties? Was interest on the £10,000 front loaded or calculated on a rolling monthly basis?

On early repayment it says the agreed amount doesnt change so i keep paying £327.84 but the time of paying of the loan decreases

So it specifically says that the term will decrease if one makes an early repayment? 

overthehylts said:
i believe the interest was calculated on a rolling monthly basis

It would be worth double checking, it is also going to be worth checking that the £4,000 actually shows as it seems they are proceeding as if that payment was not made. Do you have monthly/annual statements from the lender? 

Who was the lender and what specifically is the agreement, is it a unsecured loan, a secured loan, HP, PCP etc.?

overthehylts

MattMattMattUK said:

overthehylts said:

MattMattMattUK said:

overthehylts said:

Thanks for coming back to me 

the initial term was for 5 years i paid the 4k about a week after i signed the agreement I believe the reason the apr is so high is because i have a iva 

Just for clarity, you borrowed £10,000, then paid off £4,000 within a few weeks, theoretically leaving a balance of £6,000? What does the contract say on early repayment, any allowances or penalties? Was interest on the £10,000 front loaded or calculated on a rolling monthly basis?

On early repayment it says the agreed amount doesnt change so i keep paying £327.84 but the time of paying of the loan decreases

So it specifically says that the term will decrease if one makes an early repayment? 

overthehylts said:
i believe the interest was calculated on a rolling monthly basis

It would be worth double checking, it is also going to be worth checking that the £4,000 actually shows as it seems they are proceeding as if that payment was not made. Do you have monthly/annual statements from the lender? 

Who was the lender and what specifically is the agreement, is it a unsecured loan, a secured loan, HP, PCP etc.?

On the annual statement it shows the 4k but doesnt look like it has been taken of the balance the agreement is  hp