working out monthly interest on car hp??

mrskpickles

Hi there

My husband and I bought a new car, we paid a deposit lwaving the balance at £22,000 which we got on finance as the advisor at the dealership said it was better to use their finance facilities instead of our cash. whether he was right I am still not sure! Anyway the info is as follows and I want to know how much of our monthly payment is interest??? Trying to do a spreadsheet

cash price of goods £30,699
less deposit £9,149
amount of credit £21,550 part a
amount of credit £450 part b

Hire purchase charges- £5,484.20
credit facility part a £175
credit facility part b £165
purchase fee £10
total charge for credit £5,834.20
repayment balance £27,384.20
total amount payable £36,533.20

APR- 10.3% 9.31% per annum
duration 60 months

i don't understand anything of the above really, i assume the total i pay if i keep the hp for 60 months is £36,553.20, but how much of that is interest, dont understand apr and pa etc etc....

how much of my monthly payment is interest....

thank you for your help.

kirstie

worried_jim

mrskpickles wrote: »

Hi there

My husband and I bought a new car, we paid a deposit lwaving the balance at £22,000 which we got on finance as the advisor at the dealership said it was better to use their finance facilities instead of our cash.

OMG!!!!!!! Words fail me. So rather than pay for something you had the money for you have taken finance and will pay £5,834.20 over the amount that you needed to. The reason dealerships have big windows is so they can see you coming.

mrskpickles

the charge for credit £5,484.20, is that something i have to pay regardless, or does that get rebated the same as interest if i settle early. the plan is flexible, in that i can pay lump sums and settle early if i want to with no fees. ta

mrskpickles

i did try and tell my husband that, but he wanted to leave the svings where they are! we are going to settle in 24 months anyhow. are you able to work out the interest?? thank you x

malkyh

Let me ask this.

You had £22,000 of your own cash but decided to take the car on finance instead?

The salesman would want you to take finance because he would earn a nice little commission on it.

If you paid cash you'd spend £22,000. Now you've taken finance you'll pay '000's more.

mrskpickles

Hubby just didnt want to spend so much cash, wanted to leave money in the bank...his mind works in mysterious ways! finance will be settled in 24 months, so although we will pay interest its ok with us. pleeeese can anyone just tell me the interest part of the monthly payment? x

worried_jim

£5,834.20 divided by 60 = £97.23

missile

What happened to equality? Why blame your husband?

You knew enough to post up here and should have spoken up at the time. You have fourteen days cooling off period and I hope you have not left it too late.

New rights under the Consumer Credit DirectiveUnder the Consumer Credit Directive, which came into force on 1 February 2011, consumers now have 14 days to cancel a credit agreement. The legislation applies to all credit agreements, whether made in person, on the internet or over the phone, under changes to the Consumer Credit Act 1974.

daveyjp

For over 20k a rate of 10% is horrendous. I have just been in a dealership and their rate on a similar priced vehicle was 2.3%. Despite this use your cash first, treat it as a loan to yourself and repay your account monthly.