HP finance

easyvision

Hi

Just wondering if anyone has info on ending a HP finance earlier. Only 1.5 years into a 5 year finance but wouldn't mind a new car next year. Is this possible (even with a penalty) or not possible at all? I wanted a PCP as I like to change cars regularly (I get bored easily) Lol, but got turned down even though my monthly loan is more than a PCP.

Thanks Kevin

bazz26

You ring them up and ask for a settlement figure and you pay it off. If your ending early though there maybe financial penalties.

easyvision

Ah I thought that was with a personal loan early as I read something about having to pay half the figure minimum but wasn't sure, thanks!

bazz26

The half way rule is where you already have at least half the borrowed amount paid off, no longer can afford or want the car and just hand it back.

easyvision

Ah great thanks!

U_Fig

Of course you can pay up early no financial Institution will complain if you give them the money more quickly but there may be an additional charge and you will still have to pay the entire interest amount , so could work out to be more than the original repayment amount.

sunnysoutheast

easyvision wrote: »

Hi

Just wondering if anyone has info on ending a HP finance earlier. Only 1.5 years into a 5 year finance but wouldn't mind a new car next year. Is this possible (even with a penalty) or not possible at all? I wanted a PCP as I like to change cars regularly (I get bored easily) Lol, but got turned down even though my monthly loan is more than a PCP.

Thanks Kevin

Just call and ask for a settlement figure. This should include an interest rebate which will shown separately.

There's usually an extremely annoying fee to pay at the end of the loan!

The dealer might settle the finance when you buy the new car on trade-in, but you're kind of in the worst place on the depreciation curve if you bought the other car new so might not be enough in it.

easyvision

Its a second hand car, 2015. Im only thinking of it though!