Calculating Loan Term/Total Paid

WayneC83

Good Evening, this is my first post

Long story short, my credit history is chequered, but no debts outstanding. There's two CCJ's (both set to disappear within the next 9 months) and a few defaulted/satisfied accounts

I've shopped around for loans for a vehicle, not much doing as you can imagine, what I've been offered is:

Moneyway via Freedom Finance
£3200 over 36 months @ £143.04pcm
(39.9% APR, £5149 total paid back)

I have the option of flexible payments, with £143.04 being the minimum payment.

I'd like the help of somebody sharper than I am to give me a rough idea of how many months I'd be paying back (as well as the total amount) if I were to pay, say £250, or £300pcm

The goal is to pay that balance within 24 months max

Many thanks in advance!


Wayne

CLAPTON

WayneC83 wrote: »

Good Evening, this is my first post

Long story short, my credit history is chequered, but no debts outstanding. There's two CCJ's (both set to disappear within the next 9 months) and a few defaulted/satisfied accounts

I've shopped around for loans for a vehicle, not much doing as you can imagine, what I've been offered is:

Moneyway via Freedom Finance
£3200 over 36 months @ £143.04pcm
(39.9% APR, £5149 total paid back)

I have the option of flexible payments, with £143.04 being the minimum payment.

I'd like the help of somebody sharper than I am to give me a rough idea of how many months I'd be paying back (as well as the total amount) if I were to pay, say £250, or £300pcm

The goal is to pay that balance within 24 months max

Many thanks in advance!


Wayne

to repay in 24 month you need to pay 186 ppm

to pay in 18 months you pay 230 ppm

to repay in 12 months you pay 318 ppm


but 39.9% is awful

WayneC83

Thanks Clapton, that brings it down to roughly 34%, ouchy! At least I have some idea

PeacefulWaters

WayneC83 wrote: »

Thanks Clapton, that brings it down to roughly 34%, ouchy! At least I have some idea

Why would higher payments reduce the rate?

BillJones

WayneC83 wrote: »

Thanks Clapton, that brings it down to roughly 34%, ouchy! At least I have some idea

No, it doesn't change the interest rate; the calculations above look to have been done all with the same APR.

It's less repayable as it's paid back earlier, but you are still paying an extremely high rate.

Whether it makes sense or not depends on what sort of return you are getting by having a car. If it's the only way that you can work, see your children, or feed yourself, for example, then I can see why you might want to go ahead, but short of the above reasons, it sounds like a very bad deal.

Can you perhaps get a £1,000 overdraft, but a far cheaper car, and then save £200 per month towards the replacement in case the cheap one becomes uneconomical to keep on the road?