help with calculating % on loan

dave2986

Hi,

my mum wanted to buy a new car, so i went with her to drive a Kia, when they came to the finance stuff the guy only told us the monthly repayment not the APR, I quickly calculated it at about 20% i then said she could get a loan cheaper from her bank, the guy then said he would get the financial woman to come and talk to us, who said it wasent 20% but 6.5%.

could anyone shed some light on this for me

detail are

cash price £6000
deposit £500
trade in £1000
monthly repayment £170
total repayment £6200

thanks

(btw sorry if this is a really stupid question!)

mountainofdebt

how long is the payments to be made over?

I would have thought he could have told what the apr is - if he hasn't then it suggests that it might be horrendously high and he's masking this by just giving you the £ repayment figure.

regularsaver1

was she offered any documents?

scotsgirl_3

Hi

By My reckoning its an APR of 21.2%!!!! ouch!