Car Finance Help !

Bunii_Hugz

I have a question about my car finance and I'm looking for any help !

I got a statement a month or so ago but have properly looked at it now as there where a million other things going on anyways I'll just jump in

Agreement Date: 30/04/2010
Amount of Credit: £9503.40
Interest Rate: 3.03% per annum
Duration: 37 months

Okay so that all looks fine to me under this it says "Interest charges were calculated at the outset of the agreement on the amount of credit using the interest rate applicable for the duration of the agreement" ... so I am assuming this means they calculated the amount of interest over 37 months and added it on top of the initial £9503.40 [correct me if im wrong please]

So the other page is a breakdown of payments running from the first payment on 01/06/10 to 28/02/11 totalling 10 payments which equal £1752.30

However at the top it says Opening Balance: £10,749.53 and this is quite a difference of £1,246.13 between the agreed credit amount and what it states is my opening balance

So my question is I have roughly calculated the interest however it doesnt come close to the £1,246.13 difference. Was there possibly a fee for this arranged credit that wasnt brought to my attention ? Or any other possible reasons for the difference ?

The finance is with Santander.

Thanx for any help

chanz4

there would of been a setup fee and final fee due

traz39

anyone know how long santander are taking heard nothing since i sent an email on the 7-6-2011

CLAPTON

what does your credit agreement say

how much did you borrow
what was the APR
how many monthly payment were required
was there any payment free months
was there any fees
any final payments

Bunii_Hugz

I agreed to borrow £9503.40
APR is 3.03%
One payment per month for a total of 37 months of £175.23 per month
No payment free months
As far as I was aware there was no fee

Well I can walk away after the 37 months by handing the car back and then I have to pay nothing further or I can do the option payment which would be in the region of £3500

lawrie28

37 x 175.23 = 6483.51, which is what you are paying per month.

Then you say you have a final option payment in the region on £3,500 so that would mean a total repayment of £10k.

Your interest rate (flat rate) is 3.03% per annum, but the APR will be higher.

There will bea setup fee and a final fee, but this is not a HP deal, it is some kind of lease.

Did you pay any kind of deposit at the start?

Bunii_Hugz

From memory I paid £2000 deposit which then brought down the amount I needed to borrow to £9,503.40 which I needed to take finance out for

The idea behind it is you keep the car for 3 years and if you want to keep it you pay it off in a lump sum [which would be the £3,500] if you dont want to keep it you had it back and the finance agreement is no longer in place you "free" so to speak

I'll try dig out my original agreement and take it from there so I may have more information for you guys tomorrow