If you can restart your monthly payments but your finances are tight right now, so you cannot afford any extra on top of your normal monthly payments, Pay at the End means you will not have to make any payment towards your Deferred Payment(s) until the end of your finance agreement, which will either be when your last normal monthly payment is due or, if you choose to take advantage of any right you have to end your agreement early or your agreement otherwise ends early, on that earlier date.
As with Spread the Cost, there is an interest charge for delaying making up your Deferred Payment(s) and you will need to make sure that by the end of your finance agreement you have enough money set by to cover the cost of the Deferred Payment(s) and the interest charged for using Pay at the End.
Keep in mind that if you choose Pay at the End, interest on your Deferred Payment(s) will continue to be charged at a rate equivalent to the APR for your finance agreement for the remaining term of your finance agreement or until the Deferred Payment(s) have been made up.
With Pay at the End, at the end of your finance agreement (even if it ends early for any reason) you will have to make up your Deferred Payment(s) and pay the interest that has accrued on them since the end of your Deferral Period. The Deferred Payment(s) and interest together make up your ‘Pay at the End Payment’. The amount of interest in your Pay at the End Payment and therefore the total amount of that Payment will be lower if your finance agreement ends early.
Your total Pay at the End Payment will be divided into four monthly instalments, which will be collected from your account using your existing Direct Debit over the four months following the date on which your normal final payment under your finance agreement would otherwise have been made. The first three instalments will make up you Deferred Payment(s), with the final instalment covering the interest charged for your use of the Pay at the End option.
You must make sure that your Direct Debit remains in place until all four instalments of your Pay at the End Payments have been paid and that you have enough money available in your account to cover each instalment. The final instalment, to cover the interest charged, may be more than your normal monthly payment under your finance agreement.
Working out how much Pay at the End will cost
To see how much Pay at the End might cost you, please use our Payment Deferral Interest Calculator
Who might Pay at the End be good for?
Customers who want to reduce their spending now and are able to afford the additional interest, on top of the interest they would pay under Spread the Cost.
Who might Pay at the End not suit?
- Customers who are able to make some payments towards making up their Deferred Payment(s), as well as their normal monthly payment, and want to reduce any additional interest charges.
- Customers looking to part-exchange their vehicle soon.
Pay at the End - Advantages
- Payment of your Deferred Payment(s) and interest on them will be postponed to the end of your finance agreement so initially you only need to pay your normal monthly repayment under your finance agreement.
Pay at the End - Disadvantages
- Pay at the End is the most expensive option, as it has the highest total interest cost.
- Your finance agreement will not be considered fully up to date until your Deferred Payment(s) are made up and all interest due has been received by us.
- If you part-exchange your vehicle before you have paid off all of your Deferred Payment(s) and any interest due, the part exchange value you receive may be reduced.