finance

[toughmat]

how does it work?? im going to be getting a new car soon but its on finance and i only been with the finance company since September, so the question is how does it really work, settlment fiqure?? or is it just better to get a loan and pay it off and buy a new car??
[COLOR=#000000 ! important] comprar , sobornar , compra [buy][/COLOR]

[yorkshireborn]

each to their own for some finance is better but you normally pay more back than a loan
but through finance if u get any problems thru faults with the car and dealer u can use the finance company to sort it out for u.

the settlement figure will be the total value including interest on the loan.

half way thru the finance period you can hand the car back to the company and owe nothing.

theres other pros & cons but everyones financial situation is different.

[RobW]

With finance you will be paying more back than if you get a loan but the finance is against the car, a loan is not.

The settlement figure on your old finance is basically the amount you pay per month multiplied by how many months left minus about 10% interest rebate. So for example, if you had 36 months to pay and are paying £100 a month, that makes £3600 then take away the 10% and it would be about £3240. The problem with this is you will pretty much always be in negative equity, this is where the settlement figure is higher than the value of your car.

If you do have negative equity (say your car is worth £2000 and are owing £3000) then the extra £1000 is added onto the new finance, making it a personal loan, not finance making VT (voulintary termination, where you have paid half the amount owed) impossible.

If you are going to finance, always do it over the shortest period possible and always put as big a deposit down as possible, this will all help keep you in positive equity.

I used to sell cars, mostly on finance so if you have any more questions, just ask.