HP early settlement figures.... and confused beyond belief!!!

[Ketchupboy]

Need help, can someone explain to me the formula for early settllement of an HP agreement (car).

Looking at the net and financecalcs.co.uk I believe the sett is 8771.68

The finance co is giving me 9133.16 after the Nov payment on the 23rd.

Very confused.

Loan =£15k
rate = 10%
Term= 48 months
1st payment 537.50
25 instalments paid so far

So confused as to what I owe and to what date?

Thanks in advance

Ketchupboy

[Guest]

Re: HP early settlement figures.... and confused beyond belief!!!

The formula is quite complex and you would need to load it into a spreadsheet to get any result. How much are your monthly payments ?

I take it you have used this http://www.financecalcs.co.uk/Calcs/Settlement.php

This uses the current method for calculating early settlement figures as required under the CCA.

[Ketchupboy]

Re: HP early settlement figures.... and confused beyond belief!!!

The formula is quite complex and you would need to load it into a spreadsheet to get any result. How much are your monthly payments ?

I take it you have used this http://www.financecalcs.co.uk/Calcs/Settlement.php

This uses the current method for calculating early settlement figures as required under the CCA.

Thanks for coming back, the payments are 437.50 per month
Yes i used that web site
Thanks

[Guest]

Re: HP early settlement figures.... and confused beyond belief!!!

It looks like they have not included the early settlement rebate, your total paid so far subtracted from the total agreement price(principle +interest )is about 10k.

Sometimes companies quote a figure without crediting the ESR because it is a technically a rebate, i would contact them and ask for a breakdown of the figure they have quoted and ensure that the calculation for rebate as per the early settlement regulations is included within the figure.

[Ketchupboy]

Re: HP early settlement figures.... and confused beyond belief!!!

Thanks very much for your help...... will contact them today......

[Ketchupboy]

Re: HP early settlement figures.... and confused beyond belief!!!

Hi andy58, these are the figures given to me on the 28th October: the mthly instalments are 23rd monthly,the letter was undated.
outstanding balance (inc option fee(£100)) = £10062.50
less Rebate on Early Sett: £929.34
Sett amount = £9133.16

Please let me know your thoughts?

Thanks