 | Home > Land Rover Customer Relations > Paying off finance early |
 
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149   
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I have the opportunity to pay off the finance for my 110 early but I am totally stumped by the response from Land Rover finance.
I have asked for a settlement figure which they have provided, however this figure is exactly the same amount as the outstanding balance. I have 13 months left to pay if I do nothing. The issue I have is how can the two figures be the same? How can I still be charged 13 months interest when there would be no outstanding balance? I have never been impressed with LR Finance as we seem to have had nothing but problems with them (eg took them SIX MONTHS to change a payment date for me) but this takes the cake! There must be others on here who have paid early, what was your experience? Under the circumstances I am inclined to just let them wait for their money. My financial advisor said they should reimburse the outstanding interest but when he spoke to them they denied this. Any advice/suggestions very welcome. Their paperwork certainly makes mention of refund/reimbursement of charges if paid off early. 2011 110 USW 1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" |
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1st Apr 2015 5:32pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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Forgive my ignorance but I am not sure what RV and ET are? 2011 110 USW
1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" |
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1st Apr 2015 6:23pm |
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| gilarion Member Since: 05 Dec 2013 Location: Wales Posts: 5110  
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I had the same problem a couple of years ago and if I can recall rightly this is what I was told.
If it was a fixed rate loan the finance company would have added the interest over the period of the loan, so the outstanding balance would be the same for early settlement. Some loans add the interest at the end of period so the later payments pay off the interest so again no reduction in paying off early. The only loan where you would get a reduced settlement fee would be the type of loan where interest is flexible over the period. For those who like Welsh Mountains and narrow boats have a look at my videos and photos at.. http://www.youtube.com/user/conwy1 |
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1st Apr 2015 6:33pm |
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| gklau Member Since: 17 Jan 2015 Location: Leicester Posts: 35 
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Does LR finance calculate the interest figure each on the remaining balance after you pay your monthly payment?
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1st Apr 2015 6:33pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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Our understanding (going by what the finance guy at the bank read off the paperwork) is that the interest is calculated daily, which is also what LRF told me on the phone when I spoke to them. Our understanding is therefore that should I pay early, I would pay less interest as obviously the full figure is paid off over a shorter period. Obviously had I set up the payments for four years rather than five I would not pay the same interest figure would I?
The paperwork definitely mentions rebate/refund in the case of early settlement. 2011 110 USW 1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" |
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1st Apr 2015 6:37pm |
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| lukev01 Member Since: 24 Mar 2012 Location: Bedfordshire Posts: 412  
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Just read the original post. I phoned LR finance today to get a settlement figure and my man maths tells me it is equal to the GMFV LR quoted for 3 years plus the number of months x monthly amount but with some subtracted since I will not be paying interest at 5.9% for the remaining months. HTH 1970 Series 2A 88"
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1st Apr 2015 7:30pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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I understand the actual company LR use has changed, so perhaps yours is the newer, better one? What you have been told is what I expected to be told! But they are adamant I owe the full amount, which means there is absolutely zero incentive to pay it off early, as I wouldn't save a penny. 2011 110 USW
1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" |
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1st Apr 2015 8:40pm |
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| JJ Member Since: 18 May 2009 Location: Winchester Posts: 932 
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RV is residual value and et is early termination What type of finance do you have ? i.e.. HP , Finance lease etc. |
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1st Apr 2015 9:23pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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Hire purchase. 2011 110 USW
1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" |
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2nd Apr 2015 6:09pm |
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| JJ Member Since: 18 May 2009 Location: Winchester Posts: 932
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Is the finance in your name as a consumer ( regulated ) or in a company ( unregulated ) .
As a consumer you have certain rights that can't be waived by you or the finance provider but as a company you don't have the same rights and it is then down to the wording in the contract. |
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2nd Apr 2015 7:46pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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It is all in my name as an individual. 2011 110 USW
1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" |
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2nd Apr 2015 8:26pm |
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| CRC@LandRover Verified Account  Member Since: 25 Mar 2013 Location: Coventry Posts: 383
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Hi all
Due to the nature of this enquiry, I would unfortunately not be able to provide any assistance relating to finance agreements or concerns. All matters relating to finance would need to be directed to the applicable finance company as per the finance agreement. It is a requirement due to FSA regulations that this is only discussed between the policy holder and the finance provider. Regards Ryan |
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3rd Apr 2015 9:28am |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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Thanks for your input Ryan, I actually put my thread in this section as I couldn't find another one more suitable, I was already aware that Land Rover themselves are not involved in this issue, I was just hoping to hear other peoples experiences of paying off their finance ahead of schedule.
Thanks again, Dan 2011 110 USW 1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" |
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3rd Apr 2015 10:21am |
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| steve E Member Since: 06 Mar 2011 Location: Tenby Posts: 2073
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I had a letter from land rover finance for a settlement figure and it clearly stated the amount of interest to be taken off if I paid it early.
They are not allowed to top load interest anymore and must take the interest off for the early repayment. If you ask for a settlement figure they also have to send a written copy out to you by post. hope this helps Steve |
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3rd Apr 2015 10:29am |
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