Finance/arblease

[Jonny69]

Hi all, just over a year ago I purchased a chipper through arblease, I've got another 2 years to pay, as its my first time using arblease or even using finance I'm still a bit clueless about it all! I'm now wanting to pay it off or even a large sum off it! But not sure if you can etc? So anyone else financing through them that can tell me?

 

If its hire purchase you will be fine. The settlement figure will be without of the next two years worth of interest as well.

 

Of course the interest will compound over the period so you will have already paid a fair chunk of the total interest repayable in the first year.

 

If you pay off a large sum you should be able to chose to shorten the period remaining and keep the same repayment or lower the monthly repayments and keep the duration the same.

[skyhuck]

I do. I won't borrow money if they're gonna charge me for paying it ack early. I'll still pay back the full amount plus their interest,but early repayment charges are bullshit!

 

That is the penalty.

 

Ideally you want to pay of the remaining capital and not all the interest you would have paid had the loan gone full term.

 

If your going pay the exact same amount, or very close to that amount, today as you would letting the loan run, why on earth pay it off now??

 

Far better to stick the lump sum in your account and allow it to make the payments, this at least gives the freedom to use the lump sum if need for other things, without needing to arrange new finance.

[dan494]

Id have though there would be laws against that? How is it fair to pay interest on money that they have in their account? I've got a loan with my bank at the mo I bought my chipper with and to pay it back early it's just one months interest plus the balance

[Joe Newton]

That is the penalty.

 

 

 

Ideally you want to pay of the remaining capital and not all the interest you would have paid had the loan gone full term.

 

 

 

If your going pay the exact same amount, or very close to that amount, today as you would letting the loan run, why on earth pay it off now??

 

 

 

Far better to stick the lump sum in your account and allow it to make the payments, this at least gives the freedom to use the lump sum if need for other things, without needing to arrange new finance.

 

 

Because I don't like being on debt. And money sat in my account has a habit of getting spent.

 

Our viewpoints are likely uncomparable with me being PAYE and you being a business owner though.

[treesnakey]

keep cashflow in your business. dont pay it off unless you are a sole trader. the interested comes off your corporation tax.

or give yourself a payrise.

 

thats what my accountant advised me.

[hamdogg]

I'm using the money to put down for a newer grinder 😁😁

[Johny Walker]

I'm using the money to put down for a newer grinder 😁😁

 

on the r/c carlton.

[skyhuck]

I'm using the money to put down for a newer grinder 😁😁

 

[hamdogg]

on the r/c carlton.

 

 

Prob a 252

[Gray git]

Prob a 252

 

Don't do it, better grinders for not much more money out there, just had a demo of a bandit 2025 and was far more impressed with that than I ever was running a 252 and so much more stable.