Toyota Finance - Principal Payments

piker7160

Got a car on HP Finance with Toyota Finance UK. Got another 3 years to run on it but don't really want to go this long with it. Ideally I want to make these payments to build some equity into the deal and pay less interest overall. I am in negative equity to the tune of about £200 not much I know. Anyway rang them to ask if they accept Principal payments and the person I spoke seemed very vague on this question. She even asked me what is  a Principal payment, which surprised me somewhat. Apparently I can shorten the length of the agreement and also make lump payments provided the actual figure is above what I pay per month. So came away from the call non the wiser. Just wondered if any else has had a similar experience with Toyota or whatever finance company you are with.

MrFrugalFever

As per the Consumer Credit Act (CCA) 1974 you are able to make partial payments towards your HP agreement or full settlement at any point. The lender is legally obliged to rebate interest accordingly and in doing either your monthly payments will cease (if settled in full), reduce if part payment made or term decrease.

molerat

Principal Payment is not really a term used in the UK, more likely used in the US.  Making an overpayment is what would be recognised here.

noh

Why can't you simply register online and make extra payments as and when you have the available funds?
https://www.toyota.co.uk/personal-finance/my-finance