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RCI Hire Purchase
ArtyMan978
Posts: 3 Newbie
in Loans
Hi
I hope someone can help explain my hire purchase figures from RCI
We bought a car for £7300, paying £2500 deposit.
Credit was £4800,
Interest £1200
Option to purchase £298
Total to pay 8796
there are 60 payments of £99.98, we have paid 18 of these. We have had a settlement figure today of £4250 via a garage where we were hoping to trade it in. Does this seem correct? It means almost all of the interest of £1200 has been paid in the first 12 months. Surely if we settle in full now we should get a better discount on the interest liable for the full term?
This is the first hire purchase agreement we have used.
thanks in advance
I hope someone can help explain my hire purchase figures from RCI
We bought a car for £7300, paying £2500 deposit.
Credit was £4800,
Interest £1200
Option to purchase £298
Total to pay 8796
there are 60 payments of £99.98, we have paid 18 of these. We have had a settlement figure today of £4250 via a garage where we were hoping to trade it in. Does this seem correct? It means almost all of the interest of £1200 has been paid in the first 12 months. Surely if we settle in full now we should get a better discount on the interest liable for the full term?
This is the first hire purchase agreement we have used.
thanks in advance
0
Comments
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Interest can be front loaded. So lots initially and very little towards the end.
As they used to say. Finance is the only thing that lasts forever on a car.Censorship Reigns Supreme in Troll City...0 -
Early repayments are mainly interest - only towards the end of the loan does most of the monthly payment go towards the principal. It is how loans work.I used to think that good grammar is important, but now I know that good wine is importanter.0
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As others have said, the interest cost is much higher at the start of the agreement when you owe the most, than towards the end of the agreement when you owe less.
However given the info you have given and taking in to account the repayments you say you have made and the purchase fee that figure still looks a little high to me - by approx £200 or so.
I would ask the finance company to confirm how they have arrived at the balance and whether any other fees have been added.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Acceptance fee is missingDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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