The same amount over whole term?

D4nny

Sorry im all new to this bank loan stuff ect but iv just filed in some details on money supermarket to see if i can get a loan at a cheaper rate than finance from a car main dealer.te dealer would be £213.00 a month and iv just copied what it stated on money supermarket cheapest loan quote:
Representative example: If you borrow £9,000 over 5 years at a Representative rate of 3.6% APR fixed and an annual interest rate of 3.60% you would pay £163.89 per month. Total charge for credit will be £833.69.
Total amount repayable is £9,833.69

So if i took thinout does tht mean i would only pay £163.89 per month over the term and itd never go up as it states its fixed?
Sorry if it sounds like a stupid question.
Thanks in advance

[Deleted User]

Yes, the monthly payment is fixed.

lee111s

Yes that's right.

In the early months of the loan, a higher portion of the repayments will be interest in comparison to the later months.

jonesMUFCforever

Two things spring to mind - what is the APR of the dealership finance and is it HP or personal loan?
Secondly the 3.6% headline rate is only given to people with A1 credit rating - what is your credit history like?

D4nny

jonesMUFCforever wrote: »

Two things spring to mind - what is the APR of the dealership finance and is it HP or personal loan?
Secondly the 3.6% headline rate is only given to people with A1 credit rating - what is your credit history like?

Hi thankyou for this the loan from dealer would be personal not a hire purchase due to restriction on them ect.and i belive it stated 9.9% apr but cant be 100% on that without looking again.
Our credit history is good or bad depending on who you are to look at it.my partner nor i have never had credit other than phone bill never had any loans credit cards store cards nothing but we got a mortage around 16 months ago never missed a payment for any bill ect
So depending how you look at it it may not be a high credit rating? I dont know.

jonesMUFCforever

Sometimes not having credit can be as bad as not paying back credit - ask your bank to quote you what rate they would lend to you - they should be able to do this without leaving a footprint on your credit files.

Take it from there - but be very careful with motor dealers - it is not unheard of them to quote a flat rate (APR will be roughly double this).