# hire purchase and settling early



## vick (Jan 1, 2011)

Hi all! just wondering if anyone can give me some advice, 

I brought my civic on a hire purchase finance deal and the agreement is for 4 years, now I have paid just over 2 years worth of finance and I now have enough money in a lump sum to pay what is left including the interest for the 4 years. 

what I wanted to know is are there any additional charges for settling early also would I be charged for the interest for the next 2 years if I settle early?


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## PaulTheo (Sep 26, 2010)

Either fully read the small print or ask them the question there are so many different ways it could have been done. You should not need to pay all of the interest either I hope


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## DarrenM (Aug 6, 2012)

You should get a rebate on the remaining interest (there's a complicated formula used to work this out by the finance co). Just give them a call and ask for a settlement figure, it should be less than the sum of the remaining payments unless you have a large final payment or Option To Purchase fee which some companies started adding a while back, or if you have had any arrears then any fees may also be added


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## vick (Jan 1, 2011)

cheers for the reply guys! I'll be giving them a call soon


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## willjordan7 (Mar 31, 2006)

Just a quick note if you do settle early,if the date is close to your normal payment date make sure you get it in writing that the "final" payment was settled before this date,I didn't and ended up getting reported to the credit bureau for missing this payment even though I settled early.


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