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Calculate APR

Confused_Chris_2
Confused_Chris_2 Posts: 15 Forumite
in Loans
i have car finance with APR 15.7% and an amount of credit of £6894, can some please advise how to work out the monthly payments.

ps i know how much i pay but i agree to some insurance cover, not sure how much this was, (d'oh) its not PPI.

many thanks

Comments

  • zxspeccy
    zxspeccy Posts: 180 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    It does kind of depend on the term of the borrowing.

    How many payment are there in total?
  • Confused_Chris_2
    Confused_Chris_2 Posts: 15 Forumite
    thanks for responding, apologies for the delay!
    60 payments
  • InsideInsurance
    InsideInsurance Posts: 22,460 Forumite
    10,000 Posts Combo Breaker
    Presumably the insurance was some for of GAP insurance?

    You cannot calculate monthly payments from APR because APR represents total cost of borrowing (normally £1,200) for 1 year and includes any fees in addition to interest charged etc.

    Assuming there are no fees then it would be approximately £167 a month
  • TadleyBaggie
    TadleyBaggie Posts: 6,978 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The payments should be £166.55, based on those figures.
  • zxspeccy
    zxspeccy Posts: 180 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Yep £166.55 a month is the magic number.

    The figure of £6894 does seem a little unusual, as loans tend to be in round amounts. Does this figure include the insurance cover added in full to the loan at the outset?
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Hopefully it's not a five grand loan.
This discussion has been closed.
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