trying to pay off finance, but they want to charge £700 to pay it off

[misf1]

I have recently asked my car finance company for a quote to pay off my finance on my car. I pay them £154 a month for 5 years, I can't afford the payments and my boyfriend has agreed to use his savings to pay off the car and then sell it and buy a cheaper one. So I have no monthly payments. I have paid off 2 years and 2 months, they quoted me £5511 but with my payments as they are I would pay £4800 if I didn't pay it off and carried on with my payments. Why are they charging me £700 more to pay it off. I will have already paid them £3000 in interest charges. Surely I can negotiate with them and get the price down. Can anyone give me some advice my car isn't even worth £5511 its worth £5000 at a push and I doubt I will get that. I really don't know what to do. Please someone help

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[raydetinu]

The short answer is they shouldnt be. With your loan agreement there should be clause regarding early settlement and it is usually a sliding scale depending on how much you have to pay. What apr terms is listed on the agreement. You should also have a total amount to be paid over the term of the agreement. As stated would I imagine be 154 x 60 = 9240
deducting what you have paid leaves 5236. so I guess the settlement figure would be less than this. It certainly cant be more. Is this an HP agreement? ora personal loan?
It depends on how they calculate the interest and when you start paying the capital back, During the early part of an HP agreement/loan you are just paying interest not much capital. Whatever the settlement figure and what you have paid should be less than the total liability of your loan.

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[raydetinu]

Another thought if it is an HP car agreement then you can hand the car back at half way and pay nothing more. A voluntary termination.

[misf1]

Bought car on what i thought was HP but looks like it's a motor loan from Barclaycard.
The amount of credit was for £6,995 duration of 60 months and total amount payable £10385.80
cash price of car was £7995
advance payment made by myself was £1000
Total charge for credit £2390.80
Payments: one monthly payment of £154.78 followed by 58 payments of £154.78 and one monthly payment of £253.78
I've had the car 2 years and 1 month. It states on my agreement that if I want to settle the amount early I would have to pay one of the following, if a quater of the term has elapsed £811.73, half the term £576.69 and three quarters £307.69. I understand that I am not yet half way through the term, but I thought seeing as I was paying the finance off early I wouldn't have to pay the full amount of the interest, I would settle the full amount after 25 months rather than the full 60 months. Can they charge me the full amount of interest of 60 months and charge me an early settlement fee. I really don't know what to do I really need to sell the car, but it's not worth £5511.92 the price they quoted to settle

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[misf1]

sorry APR 12.80%
interest rate 6% per year

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[ReasonableRon]

Originally Posted by misf1

Bought car on what i thought was HP but looks like it's a motor loan from Barclaycard.
The amount of credit was for £6,995 duration of 60 months and total amount payable £10385.80
cash price of car was £7995
advance payment made by myself was £1000
Total charge for credit £2390.80
Payments: one monthly payment of £154.78 followed by 58 payments of £154.78 and one monthly payment of £253.78
I've had the car 2 years and 1 month. It states on my agreement that if I want to settle the amount early I would have to pay one of the following, if a quater of the term has elapsed £811.73, half the term £576.69 and three quarters £307.69. I understand that I am not yet half way through the term, but I thought seeing as I was paying the finance off early I wouldn't have to pay the full amount of the interest, I would settle the full amount after 25 months rather than the full 60 months. Can they charge me the full amount of interest of 60 months and charge me an early settlement fee. I really don't know what to do I really need to sell the car, but it's not worth £5511.92 the price they quoted to settle

The settlement quotes on your agreement are likely to be per £1000 borrowed.

Your original total amount payable was £9385.80 (the £10385.80 includes your deposit). This would have been your opening balance.

You have paid so far 25 payments of £154.80 - £3870, so your current balance should be £5515.80. This is the amount you will end up paying if you carry on with your monthly payments until the end of the term.

If you settle early you will be entitled to an interest rebate.

In relation to your original question, however, they do appear to have advised you incorrectly, but only in so far as they have got their figures the wrong way round. I would suspect that the £5511 figure is your current balance, as it is within £4 of my above figure. The £4800 figure is likely to be your settlement figure after rebate.

I would ask them for a written settlement figure, which will show the amount of the rebate, or ring them to check. I'll put a fiver on that's what has happened

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.