Best option in this scenario? (car finance)

[PumpkinSteve]

I change my car every year for a brand new one (yes, I know I'm wasting money, I'm fine with it), and usually I have to make up the negative equity with the dealer I'm buying the new car from. In this case the difference is about £2500. The finance company told me I have the option to make extra payments to them, so I was wondering if making an extra payment of £2500 would save me any more interest than if I simply settled the difference with the new dealer? Or would it work out the same?

Thankya.

[rfoster]

It would work out the same, assuming you are paying this £2,500 at the beginning of the agreement. What the car finance company are getting at is that under the current regulations, you can pay off lump sums during the course of the contract and either reduce the term of your agreement or lower the monthly payments accordingly - both will reduce the total amount of interest you'll have to pay back.

By far the easiest way is to pay the negative equity to the dealer, and they'll get the finance documents raised based on that for you

(if you'd like a comparable finance quote then send me a message!)

Richard