Car finance PCP figures don’t add up Help!

tipperary80

Please help me understand PCP figures as they don’t seem to add up

Dealer figures are

On the road price £28384
dealer contribution £3000
my deposit £4000
Final value after 4 years £12352
APR 7.9%

The dealer is quoting monthly payment of £298

Now, when I use an online pcp calculator and input the info above it says the monthly payment is £220

so £78 difference.

can someone help explain what I am missing,

thanks in advance!!

DrEskimo

How has the dealer quoted the figure? With a full written break down of each figure you have provided, or just a verbal communication of the monthly cost. 

I do agree that calculators are suggesting around £220/month so something to clarify with them. 

TrickyDicky101

Using the APR as a nominal rate (so periodic 1/12 of this) I make the payment £301 per month given the initial advance is £21,384.  If I take the APR as a genuine APR and decompound then I get the monthly as £297.44).  Dealer numbers look good to me.

ev51

TrickyDicky101's figures match mine, a monthly payment of £220 for the capital & interest on the "loan" plus approx. £78 interest per month on the GFV, total £298.

DrEskimo

DrEskimo said:

How has the dealer quoted the figure? With a full written break down of each figure you have provided, or just a verbal communication of the monthly cost. 

I do agree that calculators are suggesting around £220/month so something to clarify with them. 

Ah yes...whilst the CarWow calculator suggests £220/month:



Another calculator suggests ~£300:



Give the dealer and other members are working out ~£300, this would suggest the problem is with the CarWow calculator.

OP was the CarWow calculator where you got your £220/month figure from?

daveyjp

You also need to add £83 a month to replace the £4k deposit.