Quick HP question

MEGA · 12-15-2011, 05:32 AM

Hi Guys.

With HP finance is the interest pre-loaded like it is with PCP?

What I mean is: I've got 5% APR on a 6900 HP agreement on 1+35

Do I owe all the APR for the 3 years: Or would a settlement figure simply reflect the overal remaining cash amount plus perhaps a penalty of one month's extra interest?

Say I've paid 700 of that off. Do I now owe 6900 - 700 (+compound of 5% over 3 months = 1.75% = 130 roughly) so 6350?

Or do I infact owe 6900 + 350 + 280 + 230 (made these figures up) - 700 so 7160?

I'm hoping I don't owe the full term amount. I don't think I do.

Just wondering so I have options open

davyk31 · 12-15-2011, 05:56 AM

No you won't owe them the full term, they need to recalculate the interest.

creepy coupe · 12-15-2011, 05:58 AM

Front loaded HP was stopped on car finance some time ago.

MEGA · 12-15-2011, 06:06 AM

cool - glad to know.

12-15-2011, 05:32 AM	#1
MEGA Dieseasal 204 Rep 6,881 Posts Drives: LCI E92 335d M-Sport Join Date: Jan 2009 Location: Harrow, London iTrader: (2)	Quick HP question Hi Guys. With HP finance is the interest pre-loaded like it is with PCP? What I mean is: I've got 5% APR on a 6900 HP agreement on 1+35 Do I owe all the APR for the 3 years: Or would a settlement figure simply reflect the overal remaining cash amount plus perhaps a penalty of one month's extra interest? Say I've paid 700 of that off. Do I now owe 6900 - 700 (+compound of 5% over 3 months = 1.75% = 130 roughly) so 6350? Or do I infact owe 6900 + 350 + 280 + 230 (made these figures up) - 700 so 7160? I'm hoping I don't owe the full term amount. I don't think I do. Just wondering so I have options open __________________ Previously: 2003 Peugeot 206 1.6 8v \| 2006 E90 320d M-Sport, 19" BBS CH, Full Ice-cold JL audio install, August 2010 Total BMW 6 page feature car. \| 2003 Nissan 350Z GT Coupe 286BHP Now:2010 E92 LCI 335d M-Sport
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12-15-2011, 05:56 AM	#2
davyk31 Major General 1042 Rep 6,946 Posts Drives: Macan GTS :-) & F40 M135i Join Date: Sep 2009 Location: Northern Ireland iTrader: (0)	No you won't owe them the full term, they need to recalculate the interest.
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12-15-2011, 05:58 AM	#3
creepy coupe Lieutenant General 1867 Rep 13,043 Posts Drives: BMW M340I G20 Join Date: Aug 2007 Location: UK iTrader: (2) Garage List 2015 BMW 435d [0.00] 2009 335i [0.00]	Front loaded HP was stopped on car finance some time ago.
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12-15-2011, 06:06 AM	#4
MEGA Dieseasal 204 Rep 6,881 Posts Drives: LCI E92 335d M-Sport Join Date: Jan 2009 Location: Harrow, London iTrader: (2)	cool - glad to know. __________________ Previously: 2003 Peugeot 206 1.6 8v \| 2006 E90 320d M-Sport, 19" BBS CH, Full Ice-cold JL audio install, August 2010 Total BMW 6 page feature car. \| 2003 Nissan 350Z GT Coupe 286BHP Now:2010 E92 LCI 335d M-Sport
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