Finance - extra payments?

[Welsh Lad]

Hi all

Purchased my DS3 on elect 3 last year. Just wondering if anyone has any experience of making over payments to citroen? I'm considering paying £1000 every few months to reduce interest/increase equity in car. I'm assuming it will bring the monthly payments whilst the balloon figure will stay intact?

Does anyone have any experience of this? Any feedback would be appreciated.

Thanks

[Rickzayne]

Why do you want to do this?

[Welsh Lad]

I'm currently able to save a fair bit extra each month therefore think it would be better to pay off some of the car as interest on loans is far higher than what I would earn in a savings account. Paying more of the car would also make me feel more financially sound rather than owing a load.

[lfcrule1972]

Fair enough, I'd speak to the finance Co though and get them to confirm what they tell you in writing

[Rickzayne]

I'm currently able to save a fair bit extra each month therefore think it would be better to pay off some of the car as interest on loans is far higher than what I would earn in a savings account. Paying more of the car would also make me feel more financially sound rather than owing a load.

You could also refinance the car with a higher repayment so that you actually own it instead?

[Bigfeet]

All that happens is the balance of finance is reduced with no changes to GFV or monthly repayments, contact CFS on 0845 086 7070 to make an extra payment.

[Welsh Lad]

Rick - Cheers. Currently looking into possibility of refinancing or bank loan. May speed things up!

Bigfeet - I'm confused, if it doesn't reduce payments or GFV surely i'd end up paying more. Or would there be less monthly payments at the end before the baloon figure as surely somewhere the extra payment reduces future payment(s)? Thanks

[Bigfeet]

Just to clear things up;

If you have a balance to finance of £10,000 paying back £150 per month over 48 months and you decided to pay some extra in all you are doing is reducing what you owe to the finance company so the term will shorten, the monthys still stay at £150.

[Toxic]

There may also be "admin" charges since you are trying to change the T&Cs of the finance policy

[Welsh Lad]

Cheers big feet!

Toxic - Yeah I did some research a few months back. Apparently since around 2011 finance companies can't charge for overpayments. However, I may be wrong and I'm sure they will find a charge of some kind and may just be better off just not making an overpayment. Will enquire when I plan on making an extra payment.

[CliveP]

I contacted CUK Finance in month 2 I think it was and said 'what's the settlement' they told me, I paid it off and saved all the interest over the next 2 years I would have paid - was always my intention only took the Elect 3 to take advantage of the £1500 contribution from Citreon Finance, otherwise buying cash at purchase would have cost me more....

Regards,
Clive.

[sp4k]

Hanmi Bank is a great choice for managing all my banking needs. You can contact hanmi bank customer service to learn more about this. They provide a full range of services, including opening accounts, making deposits, and issuing bank cards. In my opinion, they have an excellent service provided by their specialists.

[HoldenClark]

Hi. If you are in a situation where you are considering taking out a payday loan, it is best to make sure you have as much information as possible before making a decision. So you are doing the right thing by reading this and staying informed by checking out payday loans in MD. As we dive deeper into payday loans, we will look at both their benefits and drawbacks, and do our best to keep an open mind.