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Car finance settlement figure

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  • 23-02-2013 10:03pm
    #1
    cantwin
    Registered Users Posts: 2 ✭


    I have motor finance with a finance company, I loaned 5,300 almost one year ago and have paid back €195 per month, the finance is over three years and i rang yesterday looking for a settlement figure and they said €4,900, I was both shocked and suprised and they wouldnt settle for a penny less, anybody got any advice on next step? I offered €4000 but was declined, should | just accept this or go further.


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    cantwin wrote: »
    I have motor finance with a finance company, I loaned 5,300 almost one year ago and have paid back €195 per month, the finance is over three years and i rang yesterday looking for a settlement figure and they said €4,900, I was both shocked and suprised and they wouldnt settle for a penny less, anybody got any advice on next step? I offered €4000 but was declined, should | just accept this or go further.

    When you say car finance I presume you mean it's secured on the car and most likely a fixed rate then as most are? Please correct me if I am wrong. These generally have clauses for paying earlier such as paying balance plus next 6 months of interest. They are secured on the car and would be unlikely to get any discount. Ask yourself, why should they if not legally obliged to?

    Give a few more details on type of loan and may be more helpful for a more accurate response as varies differently depending on loan agreement.


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    #3
    SJT1
    Registered Users Posts: 84 ✭✭SJT1


    What interest rate did you get the finance at?

    Looks like they're charging you the interest for the full term?

    Who's it on with?


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    #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    Interest rate on that looks scary high. Subject to correction it's c.19.5%!


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    #5
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    SJT1 wrote: »
    What interest rate did you get the finance at?

    Looks like they're charging you the interest for the full term?

    Who's it on with?

    Would be normal enough with a fixed rate loan for the entire interest amount be lumped on at the start.


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    #6
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    Yes, car finance will often have the interest front loaded.

    Generally speaking car finance is not suitable if you are likely to want to clear the loan early due to fees and the front loading of interest.


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    #7
    SJT1
    Registered Users Posts: 84 ✭✭SJT1


    I know yea, but if you clear it early they normally deducted the interest for the time not borrowed for, maybe they haven't done that


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    #8
    cantwin
    Registered Users Posts: 2 ✭cantwin


    its with a company called close motor finance, they also call themselves first auto, thanks everybody for feedback, its front loaded thats the problem


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