Document and Redemption Fees

opinions4u

mhenry9885 wrote: »

Any ideas what the difference between APR and Equivalent Rate of interest as I have two different amounts on my credit agreement (apr is 46.9(!) and equivalent is 18)

APR can be compared to other loan providers.

Equivalent Rate or Flat Rate are typically used by motor dealers to convince the buyer they're getting a good deal.

By the time you've committed to the car you get a finance agreement shoved in front of you and, despite spotting the APR, feel compelled to sign because you want you shiny motor.

If you rate is really 46.9% APR perhaps you should be asking the question "why can't I get this cheaper somewhere else". Unless you have bad credit I'd expect you to have a chance of halving your rate or better.

mhenry9885

They said they searched for other finance options including Santander but I was declined by all and my last option was to use their in house finance company.

But looking through my credit reports after signing there have been no searches so I thinks they have been fibbing.

Is 18% equivalent rate equal to 46.9%? Based on the repayment figures and looking at different online APR calculators it is consistently coming out at 51.2%

iolanthe07

51.2% is usurious and outrageous. If it is not too late - walk away.

mhenry9885

Unfortunately it is too late, all through the discussions they always quoted the 18% flat rate and never once mentioned the 46.9% (which I have now worked out to be 47.2%).

I saw the 18% on the credit agreement and thought nothing of it until looking at the agreement a few days ago and seeing the actual APR.

Lesson learnt!!

On a good note I believe the bill of sale that they have used to secure the loan is void so that's something I guess.