Reply With QuoteI was under the impression that this was stopped a while ago, and only a reasonable proportion of the repayments can be attributed to interest, as it must be spread evenly. I may be wrong..
I know you should read all the information first but we didn't when getting the wife's car on HP.
Just looked at the finances companies website as looking to pay off the balance or voluntary surrender whichever was more beneficial to us, and noticed that all the interest for the duration was added at the start of the agreement is that normal with HP?
I was under the impression that this was stopped a while ago, and only a reasonable proportion of the repayments can be attributed to interest, as it must be spread evenly. I may be wrong..
You need to ask the company for a "settlement figure" which should discount the interest for the unused portion of time the sum was lent (less fees etc., no doubt).
I've had a settlement figure and it is less than £100 off the total remaining.
Can you not use your right to withdraw ?
Get a bank loan or something to pay balance
If you're more that
N half way through you can hand back
Or you can make up the payments to that half way point if you need to. There should be a Right to Cancel clause in your finance agreement which states the figure for cancellation .
Yes we're past the 50% barrier so can hand it back.
If all the interest hadn't been added at the start of the HP agreement then it would have been beneficial for us to pay it off and sell the car privately and make a couple of quid, but due to the interest being added upfront then there's no meat left on the bone, so it will be handed back.
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