Purchase of a new commercial truck

mapen

Hi...I've just been supplied some figures from 2 local Nissan dealers for the purchase of a new truck.

The price quoted was net of VAT, 36 monthly payment plus a balloon payment. They claimed to be quoting 3.5% flat rate (7% APR??) but their numbers don't add up.

Vehicle price to finance £24207, balloon payment in 3 years £10597, monthly payments x 36 £486.

36 x 486 = £17496 + balloon £10597 = £28093.
£28093 - original finance amount = £3886 in finance charges over 3 years!!....that to me equates to 16%. Am I missing something here? Any help would be appreciated.

When I went through the numbers with the dealer they couldn't make the figures stack up either. I was expecting to pay in ITRO £1600 total finance fees based on an APR of 7%

BeenThroughItAll

Do Nissan even *make* trucks? Apart from the Cabstar, I can't think of any... and the Cabstar is more of a light commercial, is it not? 25K sounds cheap for a truck.

Billy_Bullocks

Or he means the Navara.

BeenThroughItAll

Billy_Bullocks wrote: »

Or he means the Navara.

Ah. Not a truck, then, in my mind.

Carry on.

Billy_Bullocks

BeenThroughItAll wrote: »

Ah. Not a truck, then, in my mind.

Carry on.

Ain't you heard of them referred to as a truck?

BeenThroughItAll

Billy_Bullocks wrote: »

Ain't you heard of them referred to as a truck?

Yes, but normally only by the same people who call a Freelander a 'truck', or any other slightly-taller-than-a-Fiesta vehicle a 'truck'... And I don't think they're trucks, either.

Car_54

It's 16%, but that's over 3 years. The quoted rate of 7% is annual, i.e. for one year!

At the start you owe £24,207. At 7% annual percentage rate (APR), the monthly interest is about £141 (£24,207 x 7/100/12), so your payment of £486 reduces the debt by only £345.

Every month, the sum owing gets less, and so does the interest, so the amount paid off monthly increases over time.

After 36 months, the monthly interest has come down to about £64, and the amount left outstanding equates to your balloon payment.

AdrianC

mapen wrote: »

Hi...I've just been supplied some figures from 2 local Nissan dealers for the purchase of a new truck.

The price quoted was net of VAT, 36 monthly payment plus a balloon payment. They claimed to be quoting 3.5% flat rate (7% APR??) but their numbers don't add up.

Vehicle price to finance £24207, balloon payment in 3 years £10597, monthly payments x 36 £486.

36 x 486 = £17496 + balloon £10597 = £28093.
£28093 - original finance amount = £3886 in finance charges over 3 years!!....that to me equates to 16%. Am I missing something here? Any help would be appreciated.

When I went through the numbers with the dealer they couldn't make the figures stack up either. I was expecting to pay in ITRO £1600 total finance fees based on an APR of 7%

There are umpteen PCP calculators on the web.

http://www.pcpcal.co.uk/ comes up with about the same monthly payment, given your base price, balloon and 7% APR.