Early repayment of car finance

SpringGarden

Hi I’m about to buy a nearly new car from Audi (6 months old). I’m in the fortunate position to pay cash but the dealership have offered money off and a free 2 year service plan (saving approx £1100) if I sign up for a finance plan. I know it seems sneaky but I fully intend to pay this off within a very short time 1-2 months) so as to incur the least amount of interest but get the discount and service. However it’s extremely difficult to work out how much interest they will take over that short time as obviously the early repayment instalments are more interest. Buried in VW Finance t&cs it says they can only offer me an early repayment settlement once the loan is live and that they can also ask for up to 58 days interest if you do this. Has anyone any experience of this or car finance early settlement or a way to work this out. Many thanks.

MEM62

Whatever the number, it is unlikely to be more than £1,100.

SpringGarden

https://forums.moneysavingexpert.com/discussion/comment/81878837#Comment_81878837

Hi Andy thanks for getting back to me. Could you explain why you recommended paying 3 months instalments please? Why the 58 days extra instead of 31or does that mean 2 months extra interest added on top of the instalments I will have already paid? Sorry to be dense but it’s fried my brain trying to work out the pros and cons of this without having all the facts. Many thanks for your input.

SpringGarden

Thank you, yes I thought that but I don’t like doing things where money is involved without as many facts as possible.