Car settlement figure help

Superstarleigh

Hello
I need some advice on a car finance I took out in 2011.
I bought a £28000 car amount financed was £27435, and the deal was £500 per month with £15000 (rough figures) at the end after 4 years.
2 years in and I've requested a settlement figure they've told me its £25941.28!!!!
So I've paid only 2k off.. How is this possible?
My interest rate was 12.5% I think.. I just can't work out how this is possible surely I'd get a better interest rebate?

Is there anyone who has knowledge of this or can help me find someone who can tell me what my figure should be?

Thanks guys

DevCoder

Was it 12.5% APR or 12.5% flat rate?

12.5% APR doesn't stack up, with that APR your balance would be roughly 17K now

Not quite sure if its APR how you got 15K remaining after 4 years either.

DevCoder

It looks like it was 12.5% flat rate given your figures.

poppasmurf_bewdley

If you are half way through the deal, you have £15k final payment plus £12k in monthly installments (24 x £500) left to pay, making a total of £27k.

Taking an APR of 12.5%, that's 25% over two years and 50% over four years. The car was £28k new and you've paid off £12k in the past two years.

So that leaves £16k plus the interest for the last two years equals another £7k, totalling £23k. They say £25k, leaving a discrepancy of £2k, which can probably be accounted for with charges for finance such as start and end fees, plus the rough edges for dealing in round figures.

DevCoder

Thank poppa, its been a bad day, knew I was missing something obvious such as the final balloon payment.