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Interest rate on agreement and statement differ
mountainofdebt
Posts: 7,795 Forumite
in Motoring
Can anyone explain why the interest rate on the car purchase agreement and on the car finance statement would differ by 4%?
When I bought my car 2 years ago on the agreement it states that the interest rate is 8% but on a recent statement that I've had from the finance company it states that its 12%.
tia
When I bought my car 2 years ago on the agreement it states that the interest rate is 8% but on a recent statement that I've had from the finance company it states that its 12%.
tia
2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date
0
Comments
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Does it say anywhere that the interest rate is variable?0
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Could one be the flat rate and one be the APR...?0
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Harvey, what's the difference?
The CS person I spoke to wasn't very helpful - surprise surprise!2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0 -
Flat rate is the level of interest per year, ie 4.5%. where as the APr is the anual percentage...
A loan with a flat rate of 3.75 is an APr of about 9%0 -
The only way we could work it out would be if you listed how much you borrowed, how many and how much the payments are, and what up front and back end fees are involved.0
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