Help with Car Finance Question

daveybs2001

Hi there

First time post so please bear with me.

Buying a car at the moment and have got one for £6750 put £1000 deposit down and getting finance for £5750.

The company where I'm getting the car from has a partner which does a 8% finance deal. I'm asked them about getting £5750 and they have come back with £158 per month for 48 months. This means after four years I will have paid £7584 - nearly £2000 extra.

Is this right or are they trying it on?

Cheers
Dave

markelock

have you tried other companies, your bank, or some of the others? or reducing the term (increasing the payments)?

daveybs2001

Tried recently with getting loan to pay off our wedding. Managed to get one but higher interest than this.

Just thought their '8%' quote was a bit iffy as the extra £1834 means I'll be paying for a more than third of the car again.

I'm not too sure how the interest gets calculated.

Dave

iolanthe07

Car dealerships often quote flat rates to make their deals look better than they really are. 8% flat equates to about 17% APR.

DealHunter_3

mate got a loan for a car with alliance and leicester for £8500 costing him £385 a month over 2 years

which works out at £740 extra not to bad.

CLAPTON

daveybs2001 wrote: »

Hi there

First time post so please bear with me.

Buying a car at the moment and have got one for £6750 put £1000 deposit down and getting finance for £5750.

The company where I'm getting the car from has a partner which does a 8% finance deal. I'm asked them about getting £5750 and they have come back with £158 per month for 48 months. This means after four years I will have paid £7584 - nearly £2000 extra.

Is this right or are they trying it on?

Cheers
Dave

it's about 15% APR

tictax

8% is the flat rate. Car dealers are infamous for quoting on this.

Congratulations on working out how much it will cost in total though - its the best way to compare loans.

milliemonster

Car dealers are notorious for only giving you the monthly repayment and dodging the APR question, that's what you need to be asking, what is the APR? (they don't like answering this!) although this has already been answered for you in the above posts, your best bet is to arrange a separate loan and negotiate more off the the price of the car if you can

mickeyblue_2

I bought my car recently and needed a loan or £7000. I went on moneysupermarket.com and got one with alliance and leicester 7.9%, i think it is about £149 a month for 5 years which i was happy with. This was the best rate on there.