Clearing car finance early

blahblah06

Question for you guys

someone was saying to me today if you owe say 3 k on your loan and youve lost your job and got a few bob redundancy that if you offer them 2500 or there abouts they would consider accepting that loan. would that be true or bull

bazz26

blahblah06 wrote: »

Question for you guys

someone was saying to me today if you owe say 3 k on your loan and youve lost your job and got a few bob redundancy that if you offer them 2500 or there abouts they would consider accepting that loan. would that be true or bull

My understanding is that if you have a fixed interest rate loan then they charge a penalty if you settle before the term is up. But if you have a variable interest rate then there maybe no penalty and they may give a reduced settlement figure. Not sure how accurate that is as it has been a long time since I was involved in it so the best thing to do is enquire from your lending institution.

BANZAI_RUNNER

as far as i know , when you ring them up and ask them for a settlement figure , they will give you one thats valid until your next monthly payment is due, its usuall pretty much what you owe on the car less what ever % of the interest on the current month, mat be worth €100 reduction max, so just give finance company a ring and see

smcgiff

BANZAI_RUNNER wrote: »

as far as i know , when you ring them up and ask them for a settlement figure , they will give you one thats valid until your next monthly payment is due, its usuall pretty much what you owe on the car less what ever % of the interest on the current month, mat be worth €100 reduction max, so just give finance company a ring and see

If you have fixed finance I think what's payable is the amount of the capital outstanding plus 6 months interest.

OP,

I imagine it depends. If you owe €3k on a car worth say €10k they'll most likely prefer to take the car off of you, but if you owe €3k on a car that may be worth less than that then you are in a stronger bargaining position.

Not sure how it would affect your credit rating though - you might get them to clarify that also.

blahblah06

smcgiff thats more like what I was talking about. Wonder how would you go about the phone call though

smcgiff

blahblah06 wrote: »

smcgiff thats more like what I was talking about. Wonder how would you go about the phone call though

Someone would be in the best position if they were in the below situation.

"I've just been made redundant, and I want to clear off my debts now because I'm unsure of my income going forward and I'm contacting my loan providers to arrange the clear off of my loans. Of the €3k I owe you I'd be able to pay €x amount. Would you be happy to receive this money to clear debt and for it not to affect my credit rating".

May not apply to you of course.

Not sure how well this will go on a phone call as you'll most likely get through to someone that wont have the power to help you. Might be worth emailing them with your offer and ask them to call you back.

blahblah06

Thats great. would you have any idea on the gap they could play with. the loan is 3240 pob just go for 3 or less?

guil

jesus will ya just ring them and ask, the worst they can say is no

blahblah06

sorry for trying to prepare myself first. god some people

Anan1

blahblah06 wrote: »

sorry for trying to prepare myself first. god some people

It's really an impossible one to answer - it'll probably come down to your negotiating skills vs theirs.

guil

i'm sorry but askin how would ya go about a phonecall is ridiculous

blahblah06

guil i thought boards was for asking advice amongst other things? have you nothing better to do no?

smcgiff has given me info on what to say regarding the issue so there is every point in asking.