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help with calculating % on loan
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!)
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!)
0
Comments
-
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.2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0 -
was she offered any documents?0
-
Hi
By My reckoning its an APR of 21.2%!!!! ouch!0
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