No Penalty Payouts

If you payout your loan before maturity, Madison Finance can save you money.

The method used by financiers to calculate the outstanding loan balance upon early termination can vary from lender to lender.

The most common formula used is structured so that payments cover mainly interest for the first one or two years of the loan term so that payments have little or no effect on reducing the actual loan balance during this period.

If you choose to terminate your loan earlier than expected, the financial risk may be the sale price is less than the loan payout figure because the car's value will have dropped faster than the amount owing.

We offer preferential treatment on early payout which could save you money if you decide to upgrade your car or payout your loan prior to maturity. No longer do you need to be subjected to the outdated Rule of 78 as prescribed by the banks and other leading financial institutions.

Our innovative quoting system allows you to see your projected payout figure at the end of every month during the term of your loan so you have the security of being able to see your payout figure reducing from your very first payment.

Before accepting an offer of car finance from anyone else - even if they claim to offer a 'penalty free early payout' - you should firstly find out if the Rule of 78 is involved and ask to see a copy of your loan payout schedule which will confirm your loan payout figure at monthly intervals.

News Tags: car finance, dealer car finance, car finance broker

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