could someone check this PCP calculation please?
Discussion
I've had a quote for finance on a car, which I re-checked on a couple of online calculators and I can't make it add up.
Car Price: £26,290
Money in from me (P/x + deposit) £8,400
GFV after 3 years - £12,250
They quoted me £374 a month for 3 years - which they said was an APR of 10.9%
I punched the numbers into two online calculators. As they allow me to play with the APR, I could slide the slider to try and make the numbers match up- they both said that monthly figure was more like an APR of 16% - and at 10%, it was more like £290 a month
Before I go and (nicely) challenge the dealer on the numbers - would someone mind checking to see i'm being a muppet? - non zero chance I wrote some of the figures down wrong.
Thanks, Ace
[https://www.carwow.co.uk/pcp-calculator, http://www.pcp-calculator.com/PCP-loan-calculator....
Car Price: £26,290
Money in from me (P/x + deposit) £8,400
GFV after 3 years - £12,250
They quoted me £374 a month for 3 years - which they said was an APR of 10.9%
I punched the numbers into two online calculators. As they allow me to play with the APR, I could slide the slider to try and make the numbers match up- they both said that monthly figure was more like an APR of 16% - and at 10%, it was more like £290 a month
Before I go and (nicely) challenge the dealer on the numbers - would someone mind checking to see i'm being a muppet? - non zero chance I wrote some of the figures down wrong.
Thanks, Ace
[https://www.carwow.co.uk/pcp-calculator, http://www.pcp-calculator.com/PCP-loan-calculator....
Something doesn't stack up.
So is the APR really the APR, or is that 10% some other measure, which we're then assuming is APR. Or... have they tacked a load of "services" onto the price, so tyre insurance, wheel insurance, paintwork protection, gap insurance etc?
As you say, those numbers are just bonkers, you're only borrowing £5640, over 36 months that should not cost £374.
So is the APR really the APR, or is that 10% some other measure, which we're then assuming is APR. Or... have they tacked a load of "services" onto the price, so tyre insurance, wheel insurance, paintwork protection, gap insurance etc?
As you say, those numbers are just bonkers, you're only borrowing £5640, over 36 months that should not cost £374.
phil4 said:
Something doesn't stack up.
So is the APR really the APR, or is that 10% some other measure, which we're then assuming is APR. Or... have they tacked a load of "services" onto the price, so tyre insurance, wheel insurance, paintwork protection, gap insurance etc?
As you say, those numbers are just bonkers, you're only borrowing £5640, over 36 months that should not cost £374.
Thanks - that is reassuring that I'm not going mad, and I'm glad I checked. So is the APR really the APR, or is that 10% some other measure, which we're then assuming is APR. Or... have they tacked a load of "services" onto the price, so tyre insurance, wheel insurance, paintwork protection, gap insurance etc?
As you say, those numbers are just bonkers, you're only borrowing £5640, over 36 months that should not cost £374.
On the "gap insurance and servicing" items, yes it included a load of that sort of thing too - although they did not tell me how much I was paying for that... Sounds like I have nearly fallen into an "APR is all you need to know" trap... I'll call them tomorrow and find out the deal.
SAS Tom said:
10.9% is mental isn't it? Surely you can get a better rate than that?
yes. Probably. that was the initial quote that I haven't negotiated at all on. Its a Golf R estate which you can't buy new any more - which means I'm on the much higher "used car" APR rate. We'll see what they say tommorow, I'm not up for getting rinsed, and I guess I always go get a loan from Sainsbury's at 2.9%...
On a pcp the interest isn't calculated on the amount borrowed. If you post the reg number, it's current mileage and your expected mileage I can run the figures tomorrow. There are brokers out there that will beat 10.9 which is vwfs standard rate.
Personally I wouldn't put 8.5k deposit into a pcp I find its wasted money. Your better off going hp and borrowing it from the bank and getting 3% Apr, you might actually get £375 monthly payments but in year 3 you will need roughly 6k to own the car not 12k,
Personally I wouldn't put 8.5k deposit into a pcp I find its wasted money. Your better off going hp and borrowing it from the bank and getting 3% Apr, you might actually get £375 monthly payments but in year 3 you will need roughly 6k to own the car not 12k,
steve-5snwi said:
On a pcp the interest isn't calculated on the amount borrowed. If you post the reg number, it's current mileage and your expected mileage I can run the figures tomorrow. There are brokers out there that will beat 10.9 which is vwfs standard rate.
Personally I wouldn't put 8.5k deposit into a pcp I find its wasted money. Your better off going hp and borrowing it from the bank and getting 3% Apr, you might actually get £375 monthly payments but in year 3 you will need roughly 6k to own the car not 12k,
Thank you - its This one , so KS65AVT; I'd expect to do 10k a year. Personally I wouldn't put 8.5k deposit into a pcp I find its wasted money. Your better off going hp and borrowing it from the bank and getting 3% Apr, you might actually get £375 monthly payments but in year 3 you will need roughly 6k to own the car not 12k,
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