Car Finance Repayment Strategy
OnTheRoad14
Posts: 24 Forumite
in Loans
Hi everyone,
I've recently taken out car finance through motonovo. I was just wondering what is the best/quickest way of paying this off with the following options:
1. Save the money each month, request an early settlement fee in 9 months time (which is when I believe I will have all the funds to pay it off)
or
2. Make regular overpayments as and when funds are available, then request an early settlement figure?
I think option 1 is better as I will be paying significantly less interest as I can pay it off <12 months rather than 4 years?
What is the best method for reducing the total interest paid as much as possible?
Thanks,
I've recently taken out car finance through motonovo. I was just wondering what is the best/quickest way of paying this off with the following options:
1. Save the money each month, request an early settlement fee in 9 months time (which is when I believe I will have all the funds to pay it off)
or
2. Make regular overpayments as and when funds are available, then request an early settlement figure?
I think option 1 is better as I will be paying significantly less interest as I can pay it off <12 months rather than 4 years?
What is the best method for reducing the total interest paid as much as possible?
Thanks,
0
Comments
-
Option 2 would save you the most money as the more you repay and the earlier, the more interest you save.0
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