Advantage finance

RelievedSheff

Wow. That is a huge interest rate on a car loan and over 5 years as well!

DrEskimo

messi2504 wrote: »

I got very little documentation from Advantage, it was all done via Zuto. Advatange didn't give me any details or breakdown on the loan until i had this accident it was the only time i got a breakdown on the figures.

Just tracing old emails and my APR was actually 33.57%

Yea I did think £321 was high for a 29% APR.

Your settlement after 35-months should be around the £6,200 mark, so it suggests there are also fees in the order of around £600, which is certainly on the high side, but not beyond the realms of possibility on a loan like this. You need to ask for the terms of the agreement. It should have been given to you at the point you agreed to the contract.

As has been pointed out, a 5-year loan for a car at 33% APR is very very high. I suggest next time you either look at a getting a loan much cheaper from elsewhere, or settle for a cheaper car....

How much are your insurance company paying out for the car?
You may also want to consider GAP insurance. Using sites online (ALA, gapinsurance, TotalGapLoss, etc) you can get cover for a reasonable price. Typically around £50 per year.

Good luck with getting it sorted.

messi2504

Thanks guys, i must say there was a lack of understanding on my part when i got this loan i just assumed that we would have some sort of fairer way the finance gets paid off but it seems they have insisted on just interest in the first few years of this agreement.

Now i am screwed because of this accident whereas the loan will clear what i owe there is not much left to buy a car. I did ask if i can transfer the loan over to a new car that has been ruled out.

BoGoF

It's not a case of 'insisted', its just the way it works with high interest loans. If you take anything away from this is don't borrow money at double digit APR's. You could have had a perfectly decent car for the £8000 deposit you paid for the car.

RelievedSheff

And don't take loans over 5 years on vehicles. They depreciate faster then you are paying off the balance.

3 years max on a car and at much lower rates than you took out last time as well!

DrEskimo

messi2504 wrote: »

Thanks guys, i must say there was a lack of understanding on my part when i got this loan i just assumed that we would have some sort of fairer way the finance gets paid off but it seems they have insisted on just interest in the first few years of this agreement.

Now i am screwed because of this accident whereas the loan will clear what i owe there is not much left to buy a car. I did ask if i can transfer the loan over to a new car that has been ruled out.

It's a common misconception on this board, but I can assure you there was nothing unfair about how the finance was paid. It's exactly the same for every loan. The amount of interest you pay at the beginning is higher because the principle amount is highest. As you pay down the loan, the principle reduces, so the amount of interest reduces.

It's just a mathematical fact....

I think not being able to transfer the loan is very good news! Either look for a much cheaper rate loan, or look for a cheaper car.

Did you agree with the insurance payout? Would you have been able to buy your car with the payout in the condition it was in right before the accident occurred? If not, it is also worth going back to the insurer with evidence of cars exactly like yours to prove that the pay-out is not suitable.

iolanthe07

It seems they have insisted on just interest in the first few years of this agreement.

This is how all these loans work. Not much is paid off the principal in the early stages.

messi2504

DrEskimo wrote: »

Did you agree with the insurance payout? Would you have been able to buy your car with the payout in the condition it was in right before the accident occurred? If not, it is also worth going back to the insurer with evidence of cars exactly like yours to prove that the pay-out is not suitable.

I have disputed this with my insurer and after rejecting 2 offers we have come to an agreement on their 3rd offer.

Seems like advantage have not done anything they should not have just me not being well educated on the matter.

Thanks for your input chaps.