Ford Finance / HFC Credit - Charges & PPP!

Consumerist

Thanks for the clarifiaction Common Sense, now all the numbers seem to make some sense.

jooshy

i have tried to upload my agreement and statement but it wont let me link it or upload it! what can i do to show you guys i think it is for ppp!

http:// i39.photobucket.com/albums/e170/smbjosh/001.jpg

http:// i39.photobucket.com/albums/e170/smbjosh/001.jpg

Consumerist

OK. Using some guesswork, I managed to locate your agreement.

According to the agreement you borrowed £5,900.00 to be repaid over 60 months at 8.2% pa (flat rate). This is equivalent to 16.9% APR allowing for the added finance fees.

Cost of finance: £5,900.00 x 5yrs x 8.2% pa = £2,419.00 + fees

Fees: £125.00 (finance facility) + £95.00 (purchase)

Total to be repaid: £5,900.00 + £2,419.00 + £125.00 + £95.00 = £8,539.00

The balance shown on your card is £3,145 with about 20 months till the end of the term in May 2012. So, 20 instalments of £138.65 = £2,773 then add the £95 purchase fee + £175 in late payment fees = £3,043 as an estimate.

Comparing the actual card balance with the estimate of what it should be, the card balance looks about right. It would seem that your deposit (£2,095) was regarded as a payment to your card at the start of the loan and was deducted from the full credit price (£10,634) to give the £8,539 remaining total to be repaid over 60 months (as calculated above).

Hope that makes sense.

jooshy

!!!!!!, so that means its actually right? Because when i 'bought' the car the showroom told me it was £8k for the car so i gave them by car (£2k trade) plus the £95 deposit. So i dont think i should have really been charged £10k odd for something i paid £6k+INT for?

Please post the image links if you can for others as it wont let me!

di3004

If you find that ppi was added but was not aware of this until now, maybe you can make a reclaim on that, its always best to be protected though, but you can purchase your own stand alone protection to cover for your requirements possibly cheaper.

If this is the case, check more info on ppi here.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

And there is another thread for this here for help on this matter.
http://forums.moneysavingexpert.com/forumdisplay.php?f=169

Consumerist

jooshy wrote: »

!!!!!!, so that means its actually right? Because when i 'bought' the car the showroom told me it was £8k for the car so i gave them by car (£2k trade) plus the £95 deposit. So i dont think i should have really been charged £10k odd for something i paid £6k+INT for?!

I agree that car finance agreements can be confusing. Your agreement had me going for a bit too.

The £10K you refer to is the total of the £8K for the car plus £2k finance charges. You then paid £2K deposit to reduce the outstanding balance to £8K which was to be repaid by 60 monthly instalments.

If you look at the card statement, it says that you have repaid a total £7,663 but if you add up all your 40 instalments since May 2007 they are 40 x £138.65 = £5,446 plus the £125 finance fee at the start to give a total of £5,671.

You have not paid £7,663 by monthly instalments alone because £2K of that is your deposit.

di3004

Going by the agreement, not ppi added then.;)

Consumerist

di3004 wrote: »

Going by the agreement, not ppi added then.;)

These car finance agreements are not easy to make sense of and the explanation lies in Common Sense's earlier post. I think the information on finance agreements is prescribed by legislation/regulation and its presentation leaves much to be desired, in my view.

From my understanding of this agreement, there was no PPI included at all. It is indicated on the card statement that no PPP was included - is that motor-speak for PPI?

ilovebanksMCMLXXXI

Hi

Your agreement looks perfectly normal and the figures add up.

As for the late payment fees; I don't really understand the issue? I understand you get paid on the 20th and they want the money on the 1st but surely you only needed to pay one late fee didn't you?

After the first one was late you could then budget when you get paid, knowing the payment was due on the 1st.

Anyway, best of luck