Finance Agreement

[GranpaB]

Just a quickie.

Should a vehicle finance agreement have the APR stated as well as the actual monthlies, and deposit etc?

We can see the finance amount, deposit amount and monthly payments but no % of APR.

Ta all.

[The Rotrex Kid]

Yes.

[UrbanAchiever]

Been a long time since I worked in car finance, but I think APR is only needed if the agreement is caught by the Consumer Credit Act.

If it's a limited company that's borrowing or the amount borrowed is over £25k, then APR won't be a legal requirement (probably). I'm sure someone with more recent experience will be able to confirm.

Or do a google search for Consumer Credit Act (CCA).

[GranpaB]

Ok just found it buried in the small print as it were.


Initial amount to be financed was £26k with an apr of 2.8ish% which gave 47 monthlies of about 350, but new amount to be financed is 29k over 49 months of around 450 but apr is not known yet.

Is anyone about to do a very rough guess on what the apr could be?

I know its a massive stab in the dark

[The Rotrex Kid]

GranpaB said:

Ok just found it buried in the small print as it were.


Initial amount to be financed was £26k with an apr of 2.8ish% which gave 47 monthlies of about 350, but new amount to be financed is 29k over 49 months of around 450 but apr is not known yet.

Is anyone about to do a very rough guess on what the apr could be?

I know its a massive stab in the dark

Doesn't stack up. 49*450 is only £22050 so you're about £8k light. I presume it's a PCP? What's the OFP?

[GranpaB]

Aggghh sorry yes its a lease purchase apparently, which i guess is similar to PCP?


£36k price.

Approx 7k deposit


13k Baloon.

[The Rotrex Kid]

GranpaB said:

Aggghh sorry yes its a lease purchase apparently, which i guess is similar to PCP?

Similar, yes, but with LP you have to pay the final payment, whereas with PCP you can give the car back.

Just see your addition above.

[The Rotrex Kid]

GranpaB said:

Aggghh sorry yes its a lease purchase apparently, which i guess is similar to PCP?


£36k price.

Approx 7k deposit


13k Baloon.

So your figures

7k deposit
29k to finance with a 13k balloon? So you're paying back 49@ £450 which is £22k.

Cost of borrowing is circa £6k? Is the rate 5.9% APR?

[GranpaB]

The Rotrex Kid said:

GranpaB said:

Aggghh sorry yes its a lease purchase apparently, which i guess is similar to PCP?


£36k price.

Approx 7k deposit


13k Baloon.

So your figures

7k deposit
29k to finance with a 13k balloon? So you're paying back 49@ £450 which is £22k.

Cost of borrowing is circa £6k? Is the rate 5.9% APR?

Yes thanks.

We are not sure of the APR yet. Just waiting for the return call from the sales bod, and was trying to work out roughly what the APR might be, and if it is that that has increased the monthlies from 3-450.