just been accepted for finance from A.C. deposit of £100 payments of £128/mth for 5 years!!!

5*12 = 60mths*£128=£7680. total cost of car £4995 but they said finance is 7percent apr.

i thought it would be 4995 + 7percent = £5344.65

im not very good at maths but can someone please enlighten me on why this is.

i know they include servicing and mot for the first 2 year but surly this cant be why the amount is so much. its an 04 reg with 12500miles so mot wont be bad and servicing isnt that dear.

i havent signed anything and dont intend too if this is the right amount

thanks in advance

Hi --- Off the cuff that equates to a charge of 19.4% APR interest

£4895 borrowed over 60 months = £128.06 / month

Total charge for credit = £2788.53

Total Repayment = £ 7683.53

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At 7% APR it should be £96.93 / month....... (the correct rate)

Total charge for credit = £ 920.61

Total repayment = £ 5815.61

I think you will find they have added loan PPI on top of the finance deal and perhaps added an extended warranty policy, these are NOT compulsory and are expensive ways of them earning profit from you.IF you do want PPI shop around for your own you will find it lots cheaper buying it independently.

Seriously do not sign this agreement until they have given you a full breakdown of everything you are responsible for paying all itemised and properly seperated for you, if you are in doubt get a breakdown then take it to the Citizens advice to make sure you fully understand exactly how much you're expected to pay for what. ???

7% sounds like the flat rate. Which means 7% is added for every year that the loan is taken over.

So, 4895 + 35% (5yrs x &%) = 6608.25

Divide by 60 months = £110.14 / month.

CMK is right when he says they have probably added none compulsory PPI or other such none compulsory insurances which the FSA would be very interested in.

JJ

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You gotta tie yourself to the mast my friend, and the storm will end.

CMK and JJ both of you are stars!!! thanks very much for your help i know where i stand now. thanks again

Hi
I just signed an agreement in an A.C. showroom thinking the percentage rate quoted on the agreement was the APR - 6.5%. It doesn't actually say this on the form, admittedly - though the salesman seemed to indicated this, when I asked what the APR was - he didn't say the 6.5% was not an APR.

The APR is not quoted on the form at all and I would have thought this should be so . Anyway, I didn't have a calculator at the time to work out the figures but on reviewing the figures later I realised they were much higher than a 6.5% APR should be and that the 6.5% must, in fact, be a flat rate. I feel rather foolish now.

I suppose I'm snookered then as I did sign the agreement and it was on the premises.

cheers

sticky --- If you have only just signed this agreement then you have a very short time to cancel your credit agreement, irrespective of the fact it was signed on their licenced premises.

You have to contact the finance office and tell them you want to cancel the agreement before it is signed and becomes effective at the other end, by their finance manager. Once you have done this back it up by sending written confirmation by recorded delivery, that ends the matter legally.

Contact the finance company immediately. If you have only just signed it then there's a good chance that they won't have received the documents yet and therefore the deal shouldn't be finalised.

The APR is always shown on the documents although not necessarily on the page where you sign (the page with the APR on could be conveniently in the salesperson's top drawer).

Call them right now and check that the deal has not been purchased by them. Tell them you want to put a stop to the agreement - making a note of the name of the person you spoke to and the time of the conversation. Then go back to A.C and challenge them.

At the time of the agreement being signed, you should be given a copy of the agreement (which will clearly state APR). I suspect that this hasn't been handed to you as the salesperson has lied about the APR.

Let us know how you get on...

JJ

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You gotta tie yourself to the mast my friend, and the storm will end.

CK ;-)

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You gotta tie yourself to the mast my friend, and the storm will end.

Snap --- Great minds JJ --- : - )