HP car finance Blackhorse

stuuyb

Hi all,

Just after some advice (as having spoken to a couple of people had mixed message)

In summary approx £8000 borrowed over 4yrs for a used vehicle (to be picked up within the week) via HP.

Having signed up it’s likely in about 3 weeks we may have the money to pay this off early.

I was advised you can do this anytime by requesting a settlement figure, where due to it being early you will pay likely 58 days interest. (Won’t be paying back the overall listed interest over the term, just a number of days). Apr is 12.9% on the agreement

Quesrion - The amount to be paid of interest for settlement is it based on total amount borrowed initially? (ie £8000)

OR

The outstanding balance as of the date requested? If this was the case, could you 5en pay a lump sum off the amount say. £7500, then request a settlement on the £500

reason for asking is it isn’t clear from what I’ve read…., and I’m well aware there are far more intelligent people than me!

many thanks 😃

flaneurs_lobster

Are you getting a special deal/extras for buying this vehicle via finance rather than cash?

I'd be minded (since you are within the cooling off period) to cancel the finance deal and buy the vehicle (or something similar) for cash when you get it.

How likely is it that this cash will actually be available?

jimjames

If you withdraw from the agreement rather than asking if you can pay it off then you may have minimal interest to pay and 30 days to make the payment. If you don't pay then I believe it just continues but would give you enough time to get the money to clear the balance. Mine cost around £5 in interest for that 30 days.

stuuyb

thanks for the replies. We had an incentive deposit contribution of £500 to take out the finance, which im assuming would forfeit or lose if cancelled…., a reason to settle it rather than that (understand settling the interest is more than withdrawing)