Took a HP deal at 6.9% but.....
Discussion
...just got home and read all the small print and it tells me 13.5%, or 21.4 apr, more to the point!
£950 interest over two years on a 4 grand loan!
Yes, I should have sat and read all 15 + pages when I signed, but I actualy assumed the sales bod might not speak speak with forked tongue.
There is a 14 day cooling off clause, so I will go back tomorrow and cancel it, pay it off with pound notes.
6.9 % sounded good enough to leave me some spare coin in the bank, but 21.4 doesnt!
£950 interest over two years on a 4 grand loan!
Yes, I should have sat and read all 15 + pages when I signed, but I actualy assumed the sales bod might not speak speak with forked tongue.
There is a 14 day cooling off clause, so I will go back tomorrow and cancel it, pay it off with pound notes.
6.9 % sounded good enough to leave me some spare coin in the bank, but 21.4 doesnt!
sc0tt said:
Butter Face said:
Flat rate.
If you're gonna pay it off, just call the finance company directly.
You should have read the paperwork though, that's a life lesson for you.
Whats that mean? 6.9% for the first month?If you're gonna pay it off, just call the finance company directly.
You should have read the paperwork though, that's a life lesson for you.
'If the three little letters A, P and R don't follow the rate of a personal or car loan… danger! APRs automatically mean the rate is charged on any outstanding debt. Borrow £5,000 over 5 years and by the last year you only pay interest on the amount remaining, say £1,000. At 6% APR the total interest is £800.
With a flat rate the interest is charged on the original amount borrowed, no matter what's been repaid, so in the last year you still pay interest on the whole £5,000. With a 6% flat rate, the total interest is £1,500.
Hence 6% sounds cheap but is roughly equivalent to a costly 12% APR. So if the salesman's given you an interest rate, before you sign any credit agreement, always check the rate that's mentioned on there - it's illegal for consumer credit agreements not to have the APR on them.'
You should always be quoted an APR, not a flat rate. Equally you should never sign an agreement you haven't fully read or understood!
steve-5snwi said:
You don't need to read all the pages, just the one that states the total amount payable. Or you could just add up all the monthly payments and the deposit and then deduct the amount borrowed.
The APR and charges are normally detailed on the front/second page of the SECCI which should be read/explained before anything is signed.Butter Face said:
From MSE.
'If the three little letters A, P and R don't follow the rate of a personal or car loan… danger! APRs automatically mean the rate is charged on any outstanding debt. Borrow £5,000 over 5 years and by the last year you only pay interest on the amount remaining, say £1,000. At 6% APR the total interest is £800.
With a flat rate the interest is charged on the original amount borrowed, no matter what's been repaid, so in the last year you still pay interest on the whole £5,000. With a 6% flat rate, the total interest is £1,500.
Hence 6% sounds cheap but is roughly equivalent to a costly 12% APR. So if the salesman's given you an interest rate, before you sign any credit agreement, always check the rate that's mentioned on there - it's illegal for consumer credit agreements not to have the APR on them.'
You should always be quoted an APR, not a flat rate. Equally you should never sign an agreement you haven't fully read or understood!
Thank you.'If the three little letters A, P and R don't follow the rate of a personal or car loan… danger! APRs automatically mean the rate is charged on any outstanding debt. Borrow £5,000 over 5 years and by the last year you only pay interest on the amount remaining, say £1,000. At 6% APR the total interest is £800.
With a flat rate the interest is charged on the original amount borrowed, no matter what's been repaid, so in the last year you still pay interest on the whole £5,000. With a 6% flat rate, the total interest is £1,500.
Hence 6% sounds cheap but is roughly equivalent to a costly 12% APR. So if the salesman's given you an interest rate, before you sign any credit agreement, always check the rate that's mentioned on there - it's illegal for consumer credit agreements not to have the APR on them.'
You should always be quoted an APR, not a flat rate. Equally you should never sign an agreement you haven't fully read or understood!
I wrote a huge reply and the reread your reply.
simply, if I borrowed 10k with a flat rate of 10% and repaid it tomorrow I'd still repay a grand interest.
They should really teach this at school and I left 12 years ago.
sc0tt said:
Thank you.
I wrote a huge reply and the reread your reply.
simply, if I borrowed 10k with a flat rate of 10% and repaid it tomorrow I'd still repay a grand interest.
They should really teach this at school and I left 12 years ago.
Indeed, I left 40 years ago and have hardly ever taken any sort of loan in that period, other than a mortgage and the usual credit cards.I wrote a huge reply and the reread your reply.
simply, if I borrowed 10k with a flat rate of 10% and repaid it tomorrow I'd still repay a grand interest.
They should really teach this at school and I left 12 years ago.
I will cancel this loan on the morrow.
King Herald said:
Indeed, I left 40 years ago and have hardly ever taken any sort of loan in that period, other than a mortgage and the usual credit cards.
I will cancel this loan on the morrow.
I wouldn't have the foggiest. I had a mortgage 6 years back and I have a car on ford options which is simple enough to understand. I'd like to think I am savvy but would also get stung on this.I will cancel this loan on the morrow.
Hainey said:
What was it? Sofa or furnishings or some such?
A used car. I was duped by a used far salesmsn, oh the shame......
One annoying part of the deal is the 20 or so various sheets of paper and nefarious offers that the financial manager guy told me he was obliged to read out, run through and detail for me.
I'm probably correct in assuming this is all part of the ' sales spiel' they use to channel customers into signing on the dotted line without double checking everything.
Indeed, when we ran the first figures they had included some paint protection, fabric guard, body warranty etc in the figures, bringing the loan to over 7k. I soon had those extras pulled out!
Edited by King Herald on Wednesday 11th January 22:34
Butter Face said:
The APR and charges are normally detailed on the front/second page of the SECCI which should be read/explained before anything is signed.
Some read this, some just close it and get on with the signing process. I have very few that want to read it and print a copy off. I also find a lot don't seem to understand the difference between flat and Apr. Very often we will quote 7.9% Apr and people will say it's expensive and that they can get it for 6% only it turns out to be the flat rate.Gassing Station | The Lounge | Top of Page | What's New | My Stuff