Even if you returned the car prematurely, you can expect to be sued for an additional payment to pay for the financing, possibly including additional fees and interest. Hi Brian. I`m sure they can make a deal, but it`s likely to be an expensive exit from the Audi, as you`ll likely have a significant amount of negative equity to clear up before you worry about a new deal and another deposit. Mercedes is offering a cash contribution of £750 if HP funding for a car is raised over 2 or 3 years. However, if the buyer was originally a cash buyer and opted for financing but settled after 3 months, the buyer would be better off by around £500. That sounds great in theory. Is it as good as it sounds in practice? Do they deduct the 3-month payments that would have been made to the financial company? I imagine that the decision for the 2 years would bring even more benefits. Does that seem fair to you? Repaying the loan could be very expensive if you haven`t already paid half of the total financial balance, so it`s not a right you can afford. If you are worried about your finances due to the coronavirus pandemic, help and advice is at your disposal.
Your finance company should offer you a three-month payment deferral for your auto financing contract. Also, be sure to read our exclusive review of this payment holiday initiative to decide if it`s right for you. Hi Beth. It will be a question of how quickly your car devalues compared to your refunds. If you settle down now, you`ll probably have to pay a lot of extra money, but you`ll end up paying less overall (as you`ll save interest on the last 38 payments you won`t make). For example, if you keep the car for another year, you will end up paying less money, but you will have paid more overall due to the extra APR you paid.. .