 | 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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Hi Steve, how recently was this? My finance was taken out in may 2011 for five years. 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 10:31am |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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The paperwork does mention a rebate may be available if paid off early, this is why we are so confused by the communication from them.
As it stands if I just carry on paying, it is about £7100, according to our calculations I should save about £1500 in interest by paying now which would leave the balance as about £5600, but they have quoted £7100 and say there would be no rebate. 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 10:51am |
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| steve E Member Since: 06 Mar 2011 Location: Tenby Posts: 2073 
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Have they put this in writing to you.
That seems alot of interest on a small amount of money 20k over 5 years at 4.4% only costs 2K in interest What are the terms of the loan? |
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3rd Apr 2015 11:11am |
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| Jukathy Member Since: 25 Jan 2015 Location: Berlin Posts: 170 
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You're in a contract. If you want to end it earlier, you'll have to pay a fee.
Generally speaking, the fee pays off the interest, the bank is going to loose. How could this bank plan their business and calculate the interest if the numbers were not safe? Just take your money, invest in somebody else and get your own interest from them. |
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3rd Apr 2015 11:14am |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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About %12 IIRC.
Yes I understand they are out to make money, but they have already done this over the past four years with the interest I have already paid. Most banks now have early repayment options, as no longer are things so skewed that they can just do whatever they like to people. It is as much in their interest to get their money back as it is in mine to pay it off. 2011 110 USW 1973 Series III 1-Ton 1972 Series III 1-Ton Cherrypicker 1969 IIA 1-Ton 1966 IIA 88" Last edited by 22900013A on 3rd Apr 2015 11:55am. Edited 1 time in total |
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3rd Apr 2015 11:52am |
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| steve E Member Since: 06 Mar 2011 Location: Tenby Posts: 2073
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Did they send you the written settlement quote?
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3rd Apr 2015 11:54am |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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As yet they have not sent anything in writing. 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 11:55am |
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| steve E Member Since: 06 Mar 2011 Location: Tenby Posts: 2073
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I would ask for it in writing as they are supposed to send it automatically.
It should also have a breakdown of what you have to pay and the interest saved. Did they finance through Land rover finance or another company? |
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3rd Apr 2015 12:05pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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It was all done as Land Rover finance but the company is called FGA.
Obviously they are closed today and there is no post so I can't chase anything up today. 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 12:20pm |
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| steve E Member Since: 06 Mar 2011 Location: Tenby Posts: 2073
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Let me know how you get on
 |
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3rd Apr 2015 12:45pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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Okay, I am now even more confused than before.
We had a letter through with a settlement figure. The problem is that this figure is way more (by about £2000) than what all my outstanding instalments add up, including the final option to buy fee. They mention a rebate of about £400 but the overall cost will still be higher. My bank advisor is also totally confused. We have left it for now and will contact them again in the week. 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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4th Apr 2015 10:37am |
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| Jukathy Member Since: 25 Jan 2015 Location: Berlin Posts: 170
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Hmm. If you want to stop your contract earlier, you have to compensate their risk for the next months.
The rest is some sort of punishment for your 'dismissal' They want to keep up with you. |
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23rd Apr 2015 7:39pm |
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| 22900013A Member Since: 23 Dec 2010 Location: Oxfordshire Posts: 3149
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We have pretty much decided they are either utterly incompetent, or just a set of money-grabbing so and so's, so either way they will be waiting for their money, as there is no benefit whatsoever to me paying off early.
I stress this is NOT the firm Landrover current use for their finance services. 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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24th Apr 2015 5:59am |
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| IanW Member Since: 12 Jun 2011 Location: Gloucestershire Posts: 172 
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If it helps, and it depends on the individual agreement, look at Section 99 of the Consumer Credit Act. There should be a paragraph in the credit agreement to the effect that once half of the total sum (the figure will be given) of finance has been paid then the item (vehicle) can be handed back without further payment. Obviously you need to make sure that that sum has been paid, and if you are just under it might be worth paying the difference. You won't get the difference back if you've paid more though.A couple of provisos - there must have been no missed payments and the vehicle must be in reasonable condition. There is controversy as to whether an excess mileage charge is legally enforceable. Finance companies dislike this legal provision as it loses them money, especially on a vehicle with high depreciation, and they've tried unsuccessfully so far to have the law changed. If this route is followed then the early termination will show up on a credit report as 'VT' (voluntary termination) but according to one credit report provider without adverse future effect. Nor should there be as consumers are merely making use of a legal right. The condition of the vehicle is important as companies will try and ramp up repair costs for blemishes. Best to take photographs of the vehicle before handing it back. Expect difficulties to be put in your way by some companies. There are format letters on line to send to finance companies if you need them. Approaches vary. One wife - livid
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24th Apr 2015 6:34am |
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