Car finance

[Grumpy64]

First of all hello, I am new to this and apologise if I am in the wrong area. I have a question about some car finance.

I bought a car last march on 4 year finance, I unfortunately had a car accident last month which resulted in the car being written off. The car finance company were paid directly from my insurance company. I could make early repayment, however I can not reduce the term of the loan. Which basically meant I will have to pay the full interest to them. What I had already paid in monthly instalments and the sum the insurance company paid meant that I had actually covered the original cost of the car and more than a years interest. I did not realise at the time of taking out the loan that this would be the case, ( I didn't see that I would be in this position, and I was not intending to pay the loan off early )
Am I now stuck paying interest to this company for the next 3 years or is there anything I can do.
I know what everyone says about reading the small print so I assume I will just have to pay up. But any feedback on this would be appreciated.

 

[Witch consumer]

Was the interest added upfront i.e. the amount you paid for the car plus interest at **%? Have you had a recent statement?

Reason I ask is that if the interest is added up front then obviously there will still be an outstanding balance.

If the interest is added monthly and the insurance company have paid the capital balance, then they are adding interest to the outstanding balance which is nil and everybody knows a percentage of nothing is infact, nothing.

You could formally complain to them and then take the matter to the FOS if they are covered, but if it's in the T&C's, unless it is deemed to be an unfair term, there's not much else you can do I'm afraid.

 

[carlrob2606]

Grumpy 64; I am new to this myself and have read your thread my guess is that you are not paying the interest as such but the difference in the balance between what the finance company are owed and what your insurance paid them. effectively the Gap you can take additional cover at the time which in the event of an accident or theft your hp/finance is fully covered and paid therefore settled.