End Finance Scheme Early

[se99paj]

I'm currently 18 months into my finance scheme with my new Toyota Corolla, the thing is my financial situation has changed slightly over the last 18 months and I'm beginning to think I can't really afford the repayments without having to make some major sacrifices.

The finance scheme I am on is the one where I pay a deposit at the start, then monthly repayments over 3 years, at the end of the 3 years I can either buy the car for the guaranteed final value, or just give it back to the finance company.

What options do I have to reduce the monthly costs, can I pay off the loan in full and make repayments over a longer period, or do I have to wait until the 3 years is up before I can do anything??

I would read the small print in the finance paperwork but I don't have it with me at the moment.

[Demonic Angel]

Most finance terms are fixed payments so even if you pay say 50% of it off you still have to maintain your normal monthly payments until the total remaining amount is cleared.

You can pay it off in full if you have the cash - or you can re-finance it with other finance - a loan to pay it off for example, which may reduce your payments.

Your best bet is to speak to them and tell them about your change in circumstances - most companies are sympathetic to problems and maybe they can arrange something for you - although if they do it may show as defaulting on your credit record, which isnt very major if your credit history is 100%, but its just to warn you that they can do that.

Hope that helps a bit!

[se99paj]

I'll be going back home in a couple of weeks, I reckon I'll have a look into it then. I was thinking of buying the car with a loan, if I take the loan out for long enough then the monthly payments will go down. Only problem is that could mean having a loan for a good couple of years. I guess this is the problem when your tied down by a finance scheme.

I'll have a chat with the finance company to see what they can do, at least then I'll have some options.

PS: Demonic Angel do you go to the Leicester cruises?? I used to live their before xmas and knwe a guy that used to go to them.