Skip to content

Car Finance Expert Q&A

Hi, I'm Edwin and I'm here to help you!
image description

Edwin Miles. Underwriting Manager

Car Finance Calculator

Calculate your loan immediately


How can I help you?

Do you have a question about Carfinance247 or its services? If so, please complete the form below for a response within 1 working hours. I have over 7 years experience working for Carfinance247 and have the responsibility to answer all questions asked.

Is car loan interest front loaded?

Hi, are the loans front loaded with interest or do you pay only for the time you have borrowed if paying back early? Thanks

Posted by gary donald on


Hi Gary, a great question.

In response, most car finance lenders don't front load interest on hire purchase agreements (typical car finance). Front loading interest is mostly used for personal loans.

What you have to bear in mind though is that the amount you owe at the beginning of the agreement is greater so the lions share of your monthly payments will go towards paying the interest off. As the balance of the loan decreases so does the interest portion of your payments and you start paying more capital off the loan balance.

When an early settlement figure is calculated by the lender they do reserve the right to normally charge 2 months interest but you don't pay ALL of the interest on the agreement if you settle early.

For all those reading this, if you need car finance please make an application and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Rate Edwin’s advice.

image description


This comment is awaiting moderation.

Posted by David on

Do you have a question on this topic?

Ask a question or leave a comment on this topic below

Back to Car Finance Expert Q&A

Back to top