Car Finance, about to sign on the dotted line.

Majestic

Just about to sign on the dotted line for Car Finance with a local dealership, but I was emailed by them a short time ago and have become a tad stumped.

The first set of figures below are I how i've worked out my repayments.

Value of car: £4,295
Deposit: £450
Car Loan Amount (finance @14.5% APR): £3,845
Total amount repayable (over 36months): £4,646.83
Which works out at £129.07 a month repayment

Yet the car dealership sent me the summary below;

Car sale price £4295
Deposit £450
Financed £3845 @ 144.04 per month @ 14.5% APR

If you work out the deal over 36 a month period with repayments at £144.04, as the car dealer states above, the total repayments work out at £5185.44. Which is quite a difference from my £4,646.83 calculation.

Have I gone wayward with my workings here? What am I missing. I pop down tomorrow to sign and collect the car, but I want to make sure I have my facts right regarding figures.

Help appreciated.

chanz4

it would likely to include the final finance fees

Majestic

Really? Nearly £500 in fees?

CLAPTON

looks like a loan for 4,295 rather than 3,845
what does the paperwork say?

Majestic

It was merely an email from the dealer himself, i've yet to see the paperwork and will ask the question myself tomorrow. Just wanted to asked the board if i'd missed something glaringly obvious.

Just can't understand how a finance amount of £3,845 with an APR of 14% works out at £5185.44 (144.04 x 36mnths)

When I work out monthly repayments as £129.07 (£4,646.83 ÷ 36mnths)

:think:

CLAPTON

Majestic wrote: »

It was merely an email from the dealer himself, i've yet to see the paperwork and will ask the question myself tomorrow. Just wanted to asked the board if i'd missed something glaringly obvious.

Just can't understand how a finance amount of £3,845 with an APR of 14% works out at £5185.44 (144.04 x 36mnths)

When I work out monthly repayments as £129.07 (£4,646.83 ÷ 36mnths)

:think:

well I make it 130 per month and a total of 4,700 but not 144

don't sign but read the paperwork very carefully and take it away to study if necessary.

KingElvis

Typical car dealer shysterism...they think you're so in love with your new banger you'll sign anything.

I would read it all very carefully.

chanz4

I got a quote yesterday, £145 credit fee, £95 final purchase fee