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Car Finance Question

  • 15-05-2013 10:33am
    #1
    snypers12
    Registered Users, Registered Users 2 Posts: 163 ✭✭


    I have taking out a car loan with a car finance company. I am now starting to struggle with monthly repayments. If I was to pay maybe half the loan off today would this reduce the monthly repayments or would it just reduce the length of time left to repay the loan? I am really looking to reduce monthly repayments. If paying some of the loan off wont do this any advice on how this can be done without adding another year or so onto this loan


Comments

  • #2
    Anan1
    Registered Users, Registered Users 2 Posts: 22,815 ✭✭✭✭Anan1


    snypers12 wrote: »
    I have taking out a car loan with a car finance company. I am now starting to struggle with monthly repayments. If I was to pay maybe half the loan off today would this reduce the monthly repayments or would it just reduce the length of time left to repay the loan? I am really looking to reduce monthly repayments. If paying some of the loan off wont do this any advice on how this can be done without adding another year or so onto this loan
    Why don't you ring them and ask? :)


  • #3
    snypers12
    Registered Users, Registered Users 2 Posts: 163 ✭✭snypers12


    Anan1 wrote: »
    Why don't you ring them and ask? :)

    I would but there office hours are the same as mine so it's very hard to ring them


  • #4
    Anan1
    Registered Users, Registered Users 2 Posts: 22,815 ✭✭✭✭Anan1


    snypers12 wrote: »
    I would but there office hours are the same as mine so it's very hard to ring them
    Maybe email them? They're the only ones who can answer your question.


  • #5
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Is it hire purchase?
    If so you can return it under the half rule with no effect on your credit rating.

    http://www.nca.ie/nca/car-finance-debt

    Then head over to the bangernomics thread and find something cheap and reliable.


  • #6
    snypers12
    Registered Users, Registered Users 2 Posts: 163 ✭✭snypers12


    It is hire purchase but it's no where near half paid yet!
    Scortho wrote: »
    Is it hire purchase?
    If so you can return it under the half rule with no effect on your credit rating.

    http://www.nca.ie/nca/car-finance-debt

    Then head over to the bangernomics thread and find something cheap and reliable.


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  • #7
    mickdw
    Registered Users, Registered Users 2 Posts: 23,688 ✭✭✭✭mickdw


    snypers12 wrote: »
    It is hire purchase but it's no where near half paid yet!

    You said you had funds to clear half. You could use some of those funds to help with repayments until its half paid then give it back.


  • #8
    snypers12
    Registered Users, Registered Users 2 Posts: 163 ✭✭snypers12


    mickdw wrote: »
    You said you had funds to clear half. You could use some of those funds to help with repayments until its half paid then give it back.

    I don't have the funds my self. It would mean gettin a no interest loan from close family


  • #9
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    snypers12 wrote: »
    I don't have the funds my self. It would mean gettin a no interest loan from close family

    Which would give you enough to return it under the half rule?
    Then buy a car for around 1-2k and drive it until it dies.


  • #10
    SJT1
    Registered Users, Registered Users 2 Posts: 84 ✭✭SJT1


    snypers12 wrote: »
    I have taking out a car loan with a car finance company. I am now starting to struggle with monthly repayments. If I was to pay maybe half the loan off today would this reduce the monthly repayments or would it just reduce the length of time left to repay the loan? I am really looking to reduce monthly repayments. If paying some of the loan off wont do this any advice on how this can be done without adding another year or so onto this loan

    To answer your actual question, you really need to speak to your bank about this. Because as follows.

    First of all do you know if its a fixed rate loan or a variable loan you have, because if its a fixed rate loan(like a hire purchase) then you won't be able to make any lump sum payments and you will be better of looking at the half rule like already suggested.

    If its a variable rate loan, then its different, you can make a lump sum payment and you will have the choice of either reducing your monthly repayments by continuing with the original term you signed up on or else you can keep paying the same repayments but reduce your term. Hope this helps.


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