Discussion
True that. flat rate isn't a 'regualted' rate so you can calcualte it any way you fancy, leave out fees, leave out initital payments, end of agreement fee's etc or just plain make it up.
APR has to include all of these things, unless you're outside of the regulation (buying via a Ltd or have opted out by declaring yourself a high net worth individual to gain access to business only finance facilities).
Just remember, whilst APR is a true representation of how much interest you'll pay, don't take the wrong facility at the right APR. Sometimes it's worth paying % or 2 more to get the one with the right terms, get out clauses etc.
APR has to include all of these things, unless you're outside of the regulation (buying via a Ltd or have opted out by declaring yourself a high net worth individual to gain access to business only finance facilities).
Just remember, whilst APR is a true representation of how much interest you'll pay, don't take the wrong facility at the right APR. Sometimes it's worth paying % or 2 more to get the one with the right terms, get out clauses etc.
P-Jay said:
Just remember, whilst APR is a true representation of how much interest you'll pay, don't take the wrong facility at the right APR. Sometimes it's worth paying % or 2 more to get the one with the right terms, get out clauses etc.
It's a good point that, unless you are confident that you will be keeping the agreement up to and including making the final payment, it may be advantageous to look at alternative structures which may have slightly higher APRs but which provide greater flexibility, and which may actually turn out cheaper if you close out the finance mid-term.Sidicks
Gassing Station | Finance | Top of Page | What's New | My Stuff