Problem with interest in a loan

P

Puesyo

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We purchased a car recently under what they call a "hire purchase agreement". I made, so far, four month payments of such loan, of a total of 48. Now, I am not totally stupid and I do know that, when the monthly repayments are constant (this is a fixed-rate agreement) at the start you do pay a lot more interest than capital repayments. However, I have now talked to them with the view to repay the loan totally, and they say to me that I have paid NO CAPITAL AT ALL and ALL that I have paid, is interests and fees, to the extent that, in four months I have paid 70 per cent of the total interest. Can this be correct?

Thanks very much for your help!
 
I think you had better read the details of your agreement.

Hire purchase agreements are different to standard loans & can have very different terms & conditions.
 
You unfortunately got an HPA, not a car loan. Penalties applies if you pay off HPA early, and interests are front loaded afaik
See this thread
 
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