Ford Credit

razorfox

Straight to the point,Was in the middle of sorting out finances with them and they gave me a figure of about £308 per month over 60 months. I asked what is the "standard apr" earlier in our convo and he said around 7%, now when we got to the 308 figure i asked again to confirm the standard apr and he said yes it is about 7%.

On my way home the figures didn't add up in my head after my previous searches for loans and i finally got a loan for the same period @ 6.7% payments at £259. There figure of 308 on a calculator comes to around 14% apr.

Sounds iffy to me but i bet there is some crappy backdoor where they getaway with charging more, otherwise you could class that as miss selling in my book even though he stated about 7%, i asked him to confirm and he comes back with that figure you would naturally believe him.

Glad i went elsewhere.

If someone could enlighten me on this situation please do, i'd like to know for future reference.

Cheers

razorfox

Hmmm, looking through this site it looks as if these car companies use "flat interests rate", making the loan more expensive.

Surely i could complain if the figure he was giving me was for a flat rate interest loan rather than an apr rate i was enquiring about?

lawrie28

razorfox wrote: »

Straight to the point,Was in the middle of sorting out finances with them and they gave me a figure of about £308 per month over 60 months. I asked what is the "standard apr" earlier in our convo and he said around 7%, now when we got to the 308 figure i asked again to confirm the standard apr and he said yes it is about 7%.

On my way home the figures didn't add up in my head after my previous searches for loans and i finally got a loan for the same period @ 6.7% payments at £259. There figure of 308 on a calculator comes to around 14% apr.

Sounds iffy to me but i bet there is some crappy backdoor where they getaway with charging more, otherwise you could class that as miss selling in my book even though he stated about 7%, i asked him to confirm and he comes back with that figure you would naturally believe him.

Glad i went elsewhere.

If someone could enlighten me on this situation please do, i'd like to know for future reference.

Cheers

As above he has given you the flat rate of interest. This means you multiply the loan amount by 7% and then multiply that by the number of years of the loan to get the total repayable and then divide it by the months to get the repayment.

So a 1k loan for three years would cost £70 per year in interest, which is £210, so you would repay £1210 over 36 months.

A flat rate is roughly doubled to get an APR, so would be aroudn 14%, depending on fees.

It does not include any fees.

I "beleive" that when organising finance, and someone outright asks for the APR by law you have to give it to them, so this guy is being very very naughty. Well worth a chat to his boss, asking him what he is playing at and trying to get some freebies frmo the garage for his deliberate misleading sales tactics.

You will be please to know that the saleman will not be getting the massive commision on the finance that you havn't taken. This would have been a decent chunk of the extra money you where paying, so you can go and have a drink when you buy the car instead of him.

iolanthe07

Only car dealers seem to be able to get away with quoting flat rate for some reason. This needs sorting out.

KingElvis

Typical Arthur Dayley car sales shyster tatics when they flog their bangers to the unsuspecting forecourt foot pounders.

Normally people are so carried away with getting their tatty tin can that they don't bother checking this kind of deal properly, well done OP for finding these crooks out.

I would complain.

Apples2

Sorry for ruining your signature :)

I'm sure the salesman will respond with a statement along the lines of "I said the Interest Rate would be about 7%"

I agree with the above, expect a used car salesman to be along shortly to spout about how plain and simple it is.

Everyone else can tell you the APR, the amount of payments and the total amount payable with nothing hidden at all..... seems more simple to me than having these hidden extras to pile on top.

razorfox

Thank you for your replies.

Definitely happy with our loan rate now and glad the devious git is not getting any more out of me.

Not sure how i'd go about saying anything though, my other half is saying leave it but i'm in two minds.