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Help calculating PCP Interest
Hi Guys,
I hope someone can help me. I've been quoted PCP finance for buying a new car and I am wondering how the Interest rate is calculated? Below are the quote details if someone can help me. While I'm sure the figures are correct I'm baffled about how much interest I am paying based on 7.4% APR
Period of Hire: 36 Months
Cash Price £13,600
Less Advance Payment: £2,500
Balance of cash price/credit amount: £11,100
Add Charges (Interest): £1,719.40
Balance: £12,819.40
Balance payable by 35 monthly rentals of: £186.06
Followed by a final rental of: £6,432.30
Acceptance fee payable within first rental: £125.00
Purchase fee payable with final rental: £60.00
Total amount payable: £15,504.40
APR: 7.4
Based on annual mileage: 8000 miles
I hope someone can help me. I've been quoted PCP finance for buying a new car and I am wondering how the Interest rate is calculated? Below are the quote details if someone can help me. While I'm sure the figures are correct I'm baffled about how much interest I am paying based on 7.4% APR
Period of Hire: 36 Months
Cash Price £13,600
Less Advance Payment: £2,500
Balance of cash price/credit amount: £11,100
Add Charges (Interest): £1,719.40
Balance: £12,819.40
Balance payable by 35 monthly rentals of: £186.06
Followed by a final rental of: £6,432.30
Acceptance fee payable within first rental: £125.00
Purchase fee payable with final rental: £60.00
Total amount payable: £15,504.40
APR: 7.4
Based on annual mileage: 8000 miles
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