standard bank vehicle finance this time

[Dave A]

sorry mate but i dont know who told you that if you pay early the interest is taken off...i paid my more on my installment every month and was told by the bank that it doesnt benefit me in any way what so ever...

Agreed - If it's ad hoc, most banks tend to allocate it as a prepaid instalment at the moment.

The calculation on early payment would only apply on a contract negotiated on these terms. This was only a hypothetical example to indicate how interest is calculated. Of course the banks do not give credit for early settlement unless you give 90 days prior notice.

I don't know if this is still the case, but about 3 years ago I did an early settlement with Standard Bank and they had changed their notice policy - interest was calculated to date of payment.

I think there've been quite a few changes in the way banks handle both early payments and early settlements over the last ten years. At one stage, [I think it was] Wesbank was even using the "save interest with early payments" facility as a marketing tool.