what is the best deal out of these

slipperss

I have been to look at a car today and asked about finance options. After p/x my current car the remaining amount to buy the new car would be £13,000

They gave me several options, three HP and one PCP where they guarantee a value of my car after 3 years, I can either sell to them at that price minimum or give them that value to keep the car myself.

Sorry if I am being dumb here but I have never bought anything on finance before so trying to get my head around it

The three HP offers based on £13,000. Oh the deposit is £7300 which is the value they will give me for my car

£426.87 x 36 monthly payments
£336.43 x 48
£282.17 x 60

The PCP can only have a maximum deposit of £4900 so they will give me £2400 cash back

£335 x 36 plus afer the 3 years £7,149

Now obviously the more years the higher the total interest charges will be. How do I work out the APR on the three HP plans so I can work out if I can get a better deal elsewhere?

I have a final option of paying the £13,000 upfront as I have it available, but would prefer not to spend a big amount on a car as I am looking to move house and may need it for the right house.

Oh and final question, has anyone bought from a car dealership on finance, how much can I push them on these prices?

Thanks

pvt

I would have expected all the illustrations to have the APR or AER quoted on them. Don't they?

pvt

A quick calculation without compounding suggets the rate for all 3 of the HP deals is approx the same at around 12.1%, and the PCP is slightly less at 11.25%.

The actual amount of interest you would pay is £2,367, £3,148, and £3,930 respectively for the HP deals, and £3,809 on the PCP deal.

pvt

slipperss

Thanks for the replies.

No there wasn't an apr on the sheet and they couldn't tell me

pvt thanks for working out the apr, what calculation do you use to do that? 12% is rather high I think.

pvt

Take the 3 year HP deal:

You start owing £13,000 and end owing £0. That's an average of £6,500 over the 3 years.

You pay £426 for 36 months = £15,367. So the interst you pay is £2,367.

£2,367 interest on a average borrowing of £6,500 is 36.4%. That's for 3 years, so for one year it is 1/3rd of that = 12.1%.

gardner1

how about trying your bank for a loan