Paying off Volvo finance early?

clockworks · Post by **clockworks** » Sun Dec 10, 2023 8:25 pm

2 months ago I bought my car from the local Volvo dealer. Selekt car, so came with a decent warranty.

I was going to pay the extra £3.8k on top of my part exchange in cash, but they were doing an offer of 2 year warranty, breakdown cover, MOT insurance, and 2 services if I took out £5k Volvo finance. I did this, and they gave me £1200 "cash back".

The salesman said I could pay off the finance after 6 months and keep the "extras".

Do I actually have to wait 6 months, or can I settle the finance earlier without losing anything?
The interest rate is double what I'm getting on the cash in the bank.

Ian prescott · Post by **Ian prescott** » Sun Dec 10, 2023 8:35 pm

I done something similar about 4 months ago but wasn't made aware that I could settle the finance early without losing any of the benefits, so would also like to know if this is the case.

Chris John · Post by **Chris John** » Sun Dec 10, 2023 9:00 pm

You’d be better off reading the agreement or calling the finance company than asking for financial advice on a forum.

Paul F · Post by **Paul F** » Sun Dec 10, 2023 9:37 pm

I made 1 payment then paid it off. No early settlement fees and kept all the perks of taking out the finance but as Chris John says read the agreement it may differ to anyone else’s.

Stuber · Post by **Stuber** » Mon Dec 11, 2023 10:11 am

My paperwork says you can pay off early, though I haven't yet.

ChrisLF · Post by **ChrisLF** » Mon Dec 11, 2023 1:59 pm

As the finance is provided by a separate company/lender that is all they are interested in and doubt they notify Volvo of early settlement. Also doubt they will know the details of your deal anyway, only what you want to borrow.

Happens with many manufacturers. I suppose they work on the principle that most customers will see the term through. I think the manufacturers and lenders make enough money to cover those that pay off early!

Definitely read through the small print though.

GreatbatchT · Post by **GreatbatchT** » Fri Dec 22, 2023 11:19 pm

Very interested ro hear the outcome of this. Salesman has persuaded me to take the Hire Purchase option to get the benefits on offer then pay it off after what he said was a minimum 6 months of payments. I have the cash and would prefer to pay it off straight away, or after 1 payment. What did you do in the end?

Wychwood · Post by **Wychwood** » Sat Dec 23, 2023 12:45 am

I have previously paid off PCP finance and HP finance immediately with no issues. The deal on a new car is very often better on finance than paying in cash. As far as I am aware, you have a legal right to settle the outstanding finance immediately. All you have to do is request a settlement figure from the company that is providing the finance and pay that amount. Usually if you act quickly you can settle the day after the agreement starts and then pay only one day’s interest. I have not yet done this with a Volvo but cannot imagine that it would operate any differently. I have also never lost any other elements to the deal such as dealer discounts, service packages etc. I agree that it is wise to check the details/small print of your agreement but I would be very surprised if there was a clause which said you had to wait 6 months before you could settle.

Den48 · Post by **Den48** » Sat Dec 23, 2023 8:19 am

Hi
Salesman may have said wait 6 months in order to make sure he received his commission for selling the financing.

clockworks · Post by **clockworks** » Sat Dec 23, 2023 9:57 am

I've not done anything yet - keep putting it off, as finding the "paperwork" is going to be a pain. Pretty much everything was done electronically, so it's probably all links and emails.

The salesman was very helpful, so I would like him to get his commission.

Paying off Volvo finance early?

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