Finance q

Diagro

Diagro

Diagro

Soldato
Joined
3 Jun 2012
Posts
11,264
Yo,

Potentially buying a 440i on Monday if it's fine.

Finance agreed already.

I plan to overpay this at various stages throughout the next 24 months. Basically pour my 1/4ly bonuses into it.

My understanding is that doing this will reduce the total amount payable (reducing the interest paid).

Would they also lower the monthly amount too if asked or is that fixed by the original agreement?
 
Diagro said:
Would they also lower the monthly amount too if asked or is that fixed by the original agreement?
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This is actually the choice of the lender.

I would be very careful about taking out finance on an older car. Many finance companies won't even offer the full of range of finance products on older cars and often you will find the interest is quite high for those that do.

If you can't find any way to buy a 2016 440i without taking out an expensive finance agreement then you may need to ask if its the right car.
 
[TW]Fox said:
This is actually the choice of the lender.

I would be very careful about taking out finance on an older car. Many finance companies won't even offer the full of range of finance products on older cars and often you will find the interest is quite high for those that do.

If you can't find any way to buy a 2016 440i without taking out an expensive finance agreement then you may need to ask if its the right car.
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My calculations show I'd only pay 1.25k for the finance (intrest) if I overpay at the rate I plan to.

Of course... I could potentially raise the funds as liquid cash within 12 months from now... but I don't mind paying a little to:
1. Do it now
2. Will improve credit rating slightly to aid in offsetting my EON disaster.
3. Did I mention.. do it now?
 
Diagro said:
No, it's not the BMW dealership unfortunately. It's their sister dealership that deals in cars with not so shiny service history
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oh yeah, sytner select i remember.
sorry can't be of much help then...fwiw bmw fs will allow early repayment
i just checked my bmwfs contract but it doesn't say how an overpayment will affect future payments unfortunately
 
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[TW]Fox said:
Everyone will because it is a legal entitlement under The Consumer Credit (Early Settlement) Regulations, provided it is a regulated agreement (Which finance on a car of this value should be).
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oh lol :cry: wasn't aware of that
except a mortgage, i've never used a loan to buy anything
i cancelled the bmw fs agreement the day after i collected the car and paid it off in full as i was under the impression that buying it under finance should improve credit rating once paid back (dunno if true lol)
 
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I don't actually think you can overpay to reduce the term. You can only obtain a settlement figure once you've got the cash and clear it. So plough your quarterly bonuses into a fixed savings account and work out when it covers what's remaining on the car.
 
dLockers said:
I don't actually think you can overpay to reduce the term.
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You can - but it's the choice of the lender.

The legislation allows you to overpay whenever you wish, but my understanding is that it's the lender who gets to chose if this results in lower monthly payments or a reduced term. But it must result in one of these things.
 
[TW]Fox said:
You can - but it's the choice of the lender.

The legislation allows you to overpay whenever you wish, but my understanding is that it's the lender who gets to chose if this results in lower monthly payments or a reduced term. But it must result in one of these things.
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Well worth it if you can overpay to reduce term/overall interest.
 
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