Car loan APR?

its_okay

Hi everyone!,

I stupidly took out a loan in December through a car dealership, for £2914 over a 60 month (5 year) term. The repayments are £65.57 a month, so if I do the sum 60 X 65.57 = £3934.20 that should be the total repayable, if I keep making minimum repayments.

BUT...I was just checking my credit report through annualcreditreport.co.uk and it said the total amount for the loan is £4,413 :eek: I'm assuming this is if I keep making minimum repayments (obviously, I'm trying my best to pay it off ASAP.)

Thing is theres no APR written ANYWHERE on my paperwork, and I'm sure I could get a better deal elsewhere, but my OH keeps telling me this rate is acceptable!

Does anyone else think i'd be better off moving elsewhere so long as there are no rediculous penalty charges?

Thanks :beer:

sanfrancisco

It maybe an early repayment fee?

Are you sure your allowed to make overpayments? Specific car loans are normally quite rigid and do not allow for movement.

Ring them up for the APR.

CLAPTON

on a debt of 2914 over 60 payments of £65 it works out at about 12.5% approximately.

i don't understand why the debt shows on the credit record as 4,413 through...doesn't seem to make any sense.

whether its worth refinancing depends upon what settlement figure they give you and how much you can get a loan for.

its_okay

I think my best bet at the moment is just spend as little and save as much as I can to pay it off.

If I'm not allowed to make over payments, I guess I'll just save the money to a side and when it gets to a decent amount ring up for a settlement amount and aim to get it paid off.

It's not too bad I will get there, just got to remain positive

scotsgirl_3

Check over the agreement - it's fairly common for your first and last payments to be higher on car agreements so this could account for the difference? It does seem a lot of extra but its worth checking,

duncans-mum_2

Did they talk you into taking out GAP insurance. This is for in the event that the car was written off and the actual worth of the car is less than the loan amount. This insurance covers the shortfall. Check to see if they sold you this, as this would be added onto the loan total.