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Car finance

Home Forums Car finance Car finance

This topic contains 5 replies, has 2 voices, and was last updated by Stuart Masson Stuart Masson 4 years, 3 months ago.

  • Author
  • #64577 Reply

    I recently enquired to pay my finance deal off early as I’m 14 months into a 41/2 year hp deal on a used car. I was shocked to discover they had already added the 4&1/2 years interest to the total amount I had to pay off. Is this right can they just add all total years interest to the car straight away without telling you? This left me still with the amount I agreed to pay for the car in the first place and obviously the price of the car has gone down leaving me In a large amount of negative equity.

  • #64625 Reply
    Stuart Masson
    Stuart Masson

    Yes, this is normal. If you decide to settle now, they will recalculate the interest payment because you would not be financing the remaining 3-and-a-bit years.

    Negative equity is perfectly normal in the early years of an HP agreement. Have a read here of our articles on depreciation and early settlement.

  • #66140 Reply

    My son signed a contract to purchase a car using my car to part exchange. (He signed as the owner of the vehicle and pointed this out to the garage – the manager told him that this was okay as long as I was there when he collected the car. He did this without my knowledge. Is this contract therefore legally binding? Thanks

  • #66495 Reply

    Hi Stuart,

    I’m currently in my lease deal with a balloon payment at the end now it’s a 5 year deal which i’m 3 years into.
    However, my circumstances have changed and i no longer need the car which i’m hoping i’ll be able to terminate with out to much of a fuss. I have to cars with them both of which on finance but i’m only looking to cancel one. i hope that they may be a little understanding and appreciate the fact im not cancelling both.
    my confusion is who do i contact regarding the early termination, is it my finance company or the showroom where i purchased the car?



    • #66498 Reply
      Stuart Masson
      Stuart Masson

      Hi Mitch. It’s the finance company that you need to contact, as they own your vehicle. Your options will depend on the finance product you have taken – you mentioned a lease, which would usually carry high penalties for cancelling early. If it is actually a PCP, however, the cost to get out of the car will be much less.

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