help with quoted APR
Discussion
I've ordered a new Tiguan SEL 2.0 Tsi, which is being built this week and hope to be picking up early April. VW quoted a PCP price with them inputting £1250 towards the cost.
The figures are as follows:
Cash Price - £30950.00
Advance Payment - £8250.00 (£7000 from me £1250 from them)
Balance of cash price / amount of credit - £22700.00
Charges - £2901.00
Balance - £25601.00
35 monthlies of - £264.10
Final payment of - £16357.50
purchase fee with final - £10.00
Total amount payable £33861.00
APR 5.1%
For the life of me I cannot work out how the charges of £2901.00 add up to 5.1% (more like 12%). Can anyone far more intelligent than me when it comes to figures explain how they claim the stated APR please?
The figures are as follows:
Cash Price - £30950.00
Advance Payment - £8250.00 (£7000 from me £1250 from them)
Balance of cash price / amount of credit - £22700.00
Charges - £2901.00
Balance - £25601.00
35 monthlies of - £264.10
Final payment of - £16357.50
purchase fee with final - £10.00
Total amount payable £33861.00
APR 5.1%
For the life of me I cannot work out how the charges of £2901.00 add up to 5.1% (more like 12%). Can anyone far more intelligent than me when it comes to figures explain how they claim the stated APR please?
Mammasaid said:
Over how many years? Remember the 5.1% APR is cumulative, and depends how the interest is calculated.
Normally on loans, the interest rate is converted into a monthly rate and this is applied to the outstanding balance every month.
I'm sure that someone will be along who can tell you the correct answer shortly.
As I said 35 monthlies = 3 years.Normally on loans, the interest rate is converted into a monthly rate and this is applied to the outstanding balance every month.
I'm sure that someone will be along who can tell you the correct answer shortly.
I understand to some extent but couldn't figure out the actual maths involved.....seems like my dealer doesn't either but is able to say 'it's what the VW finance calculator says'!!
steve-5snwi said:
Are you trying to calculate it on the amount borrowed or on the whole amount? PCP is calculated differently to HP.
I was just trying to work out the math involved in my repayment over the term given, as much as I tried I couldn't see how the monthly figure and more importantly how the charges from 3 years amount to £2,901.00.No big shakes as I intend to cancel within 14 days and pay off the whole lot anyway, thus avoiding the charges but gaining there generosity
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Thanks for your replies
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