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Moneybarn interest
Hi I bought a car in January 2025
Purchase price was £10.999.00
With 60 monthly payments of £297 .I have made 8 payments all on time I have also made about £500 in extra payments. Around £2800 in all I asked for early settlement I still owe £10.237 so only £762 has come off my balance and 500 of that is extra payments so basically I have paid approximately £2000 in interest in 8 months does it seem right
Purchase price was £10.999.00
With 60 monthly payments of £297 .I have made 8 payments all on time I have also made about £500 in extra payments. Around £2800 in all I asked for early settlement I still owe £10.237 so only £762 has come off my balance and 500 of that is extra payments so basically I have paid approximately £2000 in interest in 8 months does it seem right
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Comments
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Sounds like your borrowing rate is about 21%, so yes, the majority of year 1 repayment is interest. The settlement figure likely includes early repayment charges.2
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Thank you0
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Personal loans are about 6.5% at the moment, if you can get one from a bank and just settle up you will save a lot of interest payments.Mr Generous - Landlord for more than 10 years. Generous? - Possibly but sarcastic more likely.0
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Typically people who only qualify for 21% APR car finance won't get prime rate loansMr.Generous said:Personal loans are about 6.5% at the moment, if you can get one from a bank and just settle up you will save a lot of interest payments.Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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