PCP Car Finance

Gistwithandre

Hello
Thank you for the wealth of information always available on here.
I want to know if it's possible to ask the finance company to review my agreement.
This is because I think I may have been short-changed in the first place. 
Thoughts will be appreciated and if you need any information, I am willing to provide 

Below is as things stand
Car Price £48,500 
Additional (Gap Insurance (£699), GardX (£499.17) and 12 months warranty (749.16) VAT (249.67)) = £2,197 - The 12 months warranty has expired on April 2020
Deposit £7,500
GFV £27,156.34
Interest Rate 7.4%
Agreement Term: 48 months (26 months remaining)
Monthly Payment £557.41
The total amount payable on the agreement states £60,854.61 which i think is off

My line of thought below
Car Price £48,500 minus deposit £7,500 = £41,000
New Car Price (£41,000) + Additional (£2,197) = £43,197 (Finance)
Interest at 7.4% of £43,197 over 4 years = £12,786
Total amount payable = Finance + Interest £55,983

Thoughts will be appreciated

neilmcl

Your agreement should state both the amount of Credit and total charge for credit, can you supply these please?

It looks about right to me. The total amount payable figure includes your deposit.

daveyjp

Just enter the data into an online pcp repayment calculator.
pcpcal.co.uk is one.

Mercdriver

Gistwithandre said:

Hello
Thank you for the wealth of information always available on here.
I want to know if it's possible to ask the finance company to review my agreement.
This is because I think I may have been short-changed in the first place. 
Thoughts will be appreciated and if you need any information, I am willing to provide 

Below is as things stand
Car Price £48,500 
Additional (Gap Insurance (£699), GardX (£499.17) and 12 months warranty (749.16) VAT (249.67)) = £2,197 - The 12 months warranty has expired on April 2020
Deposit £7,500
GFV £27,156.34
Interest Rate 7.4%
Agreement Term: 48 months (26 months remaining)
Monthly Payment £557.41
The total amount payable on the agreement states £60,854.61 which i think is off

My line of thought below
Car Price £48,500 minus deposit £7,500 = £41,000
New Car Price (£41,000) + Additional (£2,197) = £43,197 (Finance)
Interest at 7.4% of £43,197 over 4 years = £12,786
Total amount payable = Finance + Interest £55,983

Thoughts will be appreciated

Have you taken account of compound interest?

Gistwithandre

neilmcl said:

Your agreement should state both the amount of Credit and total charge for credit, can you supply these please?

It looks about right to me. The total amount payable figure includes your deposit.

Hi The amount of Credit states £43,197 and Total Charge for Credit is £10,157.61

Gistwithandre

daveyjp said:

Just enter the data into an online pcp repayment calculator.
pcpcal.co.uk is one.

I will try that now

Gistwithandre

Mercdriver said:

Gistwithandre said:

Hello
Thank you for the wealth of information always available on here.
I want to know if it's possible to ask the finance company to review my agreement.
This is because I think I may have been short-changed in the first place. 
Thoughts will be appreciated and if you need any information, I am willing to provide 

Below is as things stand
Car Price £48,500 
Additional (Gap Insurance (£699), GardX (£499.17) and 12 months warranty (749.16) VAT (249.67)) = £2,197 - The 12 months warranty has expired on April 2020
Deposit £7,500
GFV £27,156.34
Interest Rate 7.4%
Agreement Term: 48 months (26 months remaining)
Monthly Payment £557.41
The total amount payable on the agreement states £60,854.61 which i think is off

My line of thought below
Car Price £48,500 minus deposit £7,500 = £41,000
New Car Price (£41,000) + Additional (£2,197) = £43,197 (Finance)
Interest at 7.4% of £43,197 over 4 years = £12,786
Total amount payable = Finance + Interest £55,983

Thoughts will be appreciated

Have you taken account of compound interest?

Yes, its been included

molerat

Total amount payable on a credit agreement is the total amount of all payments including the deposit, I make TAP around £61K. What point are you arguing with ?  If you agree with the amount of interest being charged - which it seems you are happy with as your calculation is higher - then there is nothing wrong with their calculation.  Are you wanting to VT and looking for an earlier exit point ?

Gistwithandre

Gistwithandre said:

daveyjp said:

Just enter the data into an online pcp repayment calculator.
pcpcal.co.uk is one.

I will try that now

Hi Daveyjp...I tried the link and it gave me below

Monthly		Total Interest
501.54		10230.26

photome

Gistwithandre said:

neilmcl said:

Your agreement should state both the amount of Credit and total charge for credit, can you supply these please?

It looks about right to me. The total amount payable figure includes your deposit.

Hi The amount of Credit states £43,197 and Total Charge for Credit is £10,157.61

that figure plus your deposit is 60 plus thousand, so adds up to the same amount as on your agreement.

many other posters have said the same thing

Gistwithandre

molerat said:

Total amount payable on a credit agreement is the total amount of all payments including the deposit, I make TAP around £61K. What point are you arguing with ?  If you agree with the amount of interest being charged - which it seems you are happy with as your calculation is higher - then there is nothing wrong with their calculation.  Are you wanting to VT and looking for an earlier exit point ?

Hi, 
My thought will be that interest should not be charged on the deposit
Meanwhile whats TAP and VT?
Regarding exit point, it's part of what i intend to achieve as i understand you can exit after paying half so i wanted to know if half is the difference between the Price and GFMV or the total price