Car finance settlement figure Adam84

Morning all.

New user to the forum so please go easy on me

i was wondering if any of you out there had an experience of the situation im currently in?

i have a car on finance which i took out over 60 currently about 16 months into this agreement. Due to me now looking to buy a house i need out so i can borrow more/ be able to manage myself with a lot more ease each month...

This is my current situation..

I owe £9100

Finance company deductions £1100

My Settlement is £8000

A very kind family member has offered to give me £3000 towards paying my car off however im not sure if im best paying £3000 into my settlement figure and put the rest on my 0% credit card....OR contact my finance company and make an over payment of £3000 then request a new settlement figure? im thinking if i make an over payment instead of putting it into my settlement figure i might save a bit on interest? (request another settlement figure in a months time) and hopefully my new figure would be lower than £5000 due to the outstanding balance being less than the £9100 (basing it on £6100).

If anyone could help me hat would be brilliant...i hope ive not tied you all in knots!


The settlement figure is based on you settling the whole debt, not part of it. You'd have to ask the finance company about paying off a lump sum and if they say you can, make sure you have it logged as an overpayment, not an advance payment.

Your better off finding out when you reach your halfway point and VTing it, using the magic £3000 if necessary.

You will have to buy a cheaper car until your mortgage is sorted out though.

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