330uk

I have never actually purchased a car using finace so Im not sure how it works. Its just a temporary situation for me as I am expecting money in the summer.

If I buy a car on HP now, I should be able to pay the full amount off by July. Will I have to pay the final finance amount off or will I just pay the car price plus 5 months interest ?

Im just contemplating this or buying a cheapie run about till summer

AudiLover

buy a cheapie run about or lease something.

R 14NS R

depends which finance company the dealer uses, most of them have quite large penalties if you settle in the first two months, from then on, if you settle you do not pay interet on the rest of the term.

double check with the sales person or business manager you speak to at the dealer this is one of the advantages of car finance.

WRXPaul79

As above. Depends on the company. If you have bad ratings, DONT do it! I bought a 1.2 Clio a year ago, for 1500 froma local dealer, was conned and ended up with Payment protection on it too (after I said didnt want it.). Ive just paid it off to buy the Scoob, and in total have paid 3k for it, had I paid the full amount it would have been 3800!!! Ive just sold the car to my mate for 40 quid under the lowest book price of 590!

JonMc

iTrader: (51)

You'd probably get a better deal on an overdraft or credit card if you've definately got the money coming in. If not a bank loan will almost certainly offer you a better interest rate and less early settlement charges.

330uk

Thanks for advice guys. I think it was one of those Friday night thoughts. Had a think about it and decided to get a cheap run about till then.