Interest Help.

[119]

Morning guys,

Was chatting to an old friend last night and we got on to the subject of his new car, and he told me how much his monthlies were etc and i asked what the interest rate was out of interest.

"Don't know" was the answer.

He opened up the finance app on his phone and we scrolled through the PCP agreement and it is only listed as an amount and not an interest rate.

So numbers are..

Price £47,880
Deposit £9133.95

60 x £629.14

Amount of Credit £38746.75
Total Cost of Credit £11776.65

Final Ballon £12775.00

Is there any way to work out the APR?

We scanned all his documents and it isnt listed anywhere that we could find, just amounts, and lloking at the above, it seems to me to be quite high?

Cheers!

[eyebeebe]

I thought it was a legal requirement for it to be documented.

According to this calculator it’s 8.75%

https://www.efunda.com/formulae/finance/lease_rate...

[119]

Oh ffs, i did Google for a calculator and all i could get was the rather complex formula to work it out!

Fantastic, thanks!

[The Rotrex Kid]

It must be on there. It will be on there for sure.

[119]

The Rotrex Kid said:

It must be on there. It will be on there for sure.

Yeah well thats what i thought but all we could find was the amount.

Must admit, i thought that the amount is what must be shown on the docs not always the APR?

Anyway, I suspect there are probably more documents on the app somewhere, so i'll get him to dig around!

[Gary29]

Out of interest (if you'll excuse the play on words) why do you care or what do you hope to achieve from knowing the rate?

[119]

It was the interest cost that I thought seemed quite high compared to the credit amount and not having the slightest clue about finance thought it may have been a fairly high interest rate.

Curiosity.

[Dixy]

The consumer credit act requires that the APR be shown in figures as large as the largest figures elsewhere.
The balloon is nearly £13k, 5 years down the road, of coarse the interest is high.