Car Finance - paying off early - any penalties?

seatbeltnoob

Hello 

I'd like to buy a bigger family car. Trusty old 2008 corsa is not big enough for 3 car seats on long trips - ok for short trips less than 30 mins. 

I know I will regret it, the corsa is really solid car, and is so cheap to maintain, repair run. 

Have about 10 grand saved up, but would rather use car finance for the legal protection of a finance company against any problems with the car and also need the money for a rainy day. 

Looking at 2015 model so should cost around 8 to 10 grand.

Just wondering if I get a car on car finance, can I overpay the finance company and bring the debt down?

***** removed unnecessary additional information that was attracting unrelated leftfield question********

Isthisforreal99

Any overpayment/early repayment fees will be stated in your loan agreement.

Desmond_Hume

But that’s literally the answer. Your contract will state the penalties. Other contracts other people had won’t apply to you. 

redped

seatbeltnoob said:

Isthisforreal99 said:

Any overpayment/early repayment fees will be stated in your loan agreement.

no s**t sherlock. just asking for people who actually know to offer their insight. Maybe someone else has done this and has experience to offer. 

Well that's an interesting reply to someone who has offered advice - I suspect others may not be as quick to help you now!

born_again

seatbeltnoob said:

Isthisforreal99 said:

Any overpayment/early repayment fees will be stated in your loan agreement.

no s**t sherlock. just asking for people who actually know to offer their insight. Maybe someone else has done this and has experience to offer. 

Your the one who is sat there with the T/C of your finance agreement. Not all have the same T/C

I would probably pay off £100-£200 a week doing delivery gigs just paying off the loan with the profits of delivery. That way the car is essentially paying itself off as a workhorse. 

What does the finance agreement & your insurance say about using the car in such a way? As you are into business territory there.

Isthisforreal99

seatbeltnoob said:

Isthisforreal99 said:

Any overpayment/early repayment fees will be stated in your loan agreement.

no s**t sherlock. just asking for people who actually know to offer their insight. Maybe someone else has done this and has experience to offer. 

Are we supposed to guess the lender and their T&C's.

seatbeltnoob

born_again said:

seatbeltnoob said:

Isthisforreal99 said:

Any overpayment/early repayment fees will be stated in your loan agreement.

no s**t sherlock. just asking for people who actually know to offer their insight. Maybe someone else has done this and has experience to offer. 

Your the one who is sat there with the T/C of your finance agreement. Not all have the same T/C

I would probably pay off £100-£200 a week doing delivery gigs just paying off the loan with the profits of delivery. That way the car is essentially paying itself off as a workhorse. 

What does the finance agreement & your insurance say about using the car in such a way? As you are into business territory there.

No, dont know what made you and everyone else think I have a loan. It's speculative. I am researching lenders. I need advice on which lenders are least punitive with early repayments.  

There is nothing in the post which suggests I have a loan. I'm talking about wanting a car on finance in future terms. talking about the price of the new car in a bracket between 8 grand and 10 grand. I even mentioned "just wondering IF I get finance..." 

I guess that flew over your head and you just went ahead and assumed I have car finance on a car already. 

seatbeltnoob

crickets....

Oh I thought you lot were being facetious when you said look at the loan agreement. I thought you were advising me to go to each and every lender and get hold of their lending agreement small print and look at their early repayment policy one by one. 

It never occured to me that everyone just read the title and assumed I already have a loan... 

HHarry

Are you surprised after your shi££y responses to people.

You could pick a couple of lenders who look like they meet your requirements and ask them / look at their T&C’s.
or you could expect people to use their holiday time to dig out their agreements, check out the T&C’s, and report back.

Unsurprisingly, it doesn’t look like much of option 2 is happening.

Have a very Happy New Year.

matt_drummer

To be fair to the OP,

It is immediately apparent from reading their opening post that they do not have a car on finance at the moment but are considering it.

The first few replies from other users have been made in what appears to be a failure to actually read the OP's post.

To the OP, most lenders will allow overpayment.

Maybe find a car firs and then if it is from a dealer, find out what finance provider they use and what the terms are in respect of overpaying/early repayment.

Ask again for advice if you need it.

matt_drummer

Isthisforreal99 said:

Any overpayment/early repayment fees will be stated in your loan agreement.

They don't have a loan agreement.

Did you read the opening post?