Calculate APR

Confused_Chris_2

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

zxspeccy

It does kind of depend on the term of the borrowing.

How many payment are there in total?

Confused_Chris_2

thanks for responding, apologies for the delay!
60 payments

InsideInsurance

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

The payments should be £166.55, based on those figures.

zxspeccy

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

Hopefully it's not a five grand loan.