PCP car finance - something doesn't add up? (cross-post...)

Bruce_GT3

Hi there,

I'm hoping I posted this in the right forum, so here goes;

I've just negotiated a deal on a car, and have been given a quotation for a PCP as follows;

Purchase price of the car = £15995

Part ex. (used as deposit) = £5200

GFV of new car = £6494

This gives an outstanding finance balance = £4301

The PCP term is for 36 months with a flat rate of 4.25%

I calculate that the interest on the finance = £548.38 (4.25/12*36*£4301)

and the interest on the GFV = £827.99 (4.25/12*36*£6494)

which implies that the total to pay should be £4301 + £548.38 + £827.99 = £5677.36

This gives a monthly repayment of £5677.36 / 36 = £157.70

However, I have been quoted a monthly repayment figure of £197 and have been told that the "total interest charge comes to £2618".

Surely £2618 cannot equate to a flat rate of 4.25% over 3 years?

Can anyone fathom this out? Have I got my sums wrong?

TIA,
Bruce

plane_boy2000

I cant get to their figures - are you sure that they havent added GAP insurance and superguard?

Are there any other fees such as arangement, option to buy etc added?

xycom1

Like plane_boy says, any other fees included in there like option to buy charge, acceptance fee, etc.?

Looks like 4.25% flat rate is nearly 10% APR