UkLegacyT

as title, anyone know?

cheers
ian

Vegescoob

Basically double. I stand to be corrected, cos length of agreement might alter it slightly.
However, if you have a good credit rating you should be able to better it, depending on amount you want to borrow.

matt.bowey

tricky one........APR includes fees, etc.....!

talizman

iTrader: (1)

Why do you ask?

Flat rate is the figure that calculations are done on, and this is the figure you should be haggling down.

4.9% flat rate means 4.9% of the borrowed amount in interest per year of the agreement.

For example, £10,000 over 4 years @ 4.9% flat =>

4 (years) x 4.9% = 19.6% interest

£10,000 + 19.6% = £11,960 = 48 months @ £249.17 per month

ProperCharlie

as matt says - you can't work out the APR if you don't know what the arrangement fees are (if any), and how long the term is. If the APR is double the headline rate then you are probably being stitched up; it wouldn't usually be that much higher

fast bloke

On mortgages you would usualy be looking at 0.2 to 0.5 increase for APR. One of the major factors is rest periods. Fees and obligatory products also get factored in to APR, but not basic rate. APR can therefore be as misleading as normal % points. I usually work on the basis of cost per month*number of months to give a true comparison between loans

UkLegacyT

thanks to all of you for the replies.

i have borrowed 12K over 36 months on a new vehicle.

when i originally asked the rate i was told 4.9%
i just assumed this was apr as i didnt know otherwise, and so thought that it was good.
however, on collecting the vehicle it said 10.9% apr and so i questioned it. salesman told me that the 4.9% was a flat rate and that all finance figures quoted are the flat rate and not apr. he said that 4.9% equates to 10.9% due to fees etc.
i had to take the vehicle as mine had already gone as p/x and i had travelled a long way and also would have lost my deposit.

however, do you think i have been had?

dealer is volkswagen and finance is through black horse via volkswagen.
i have never owed any money etc but at the same time have never had any credit cards or payments to make etc, would this affect it?

any help appreciated.

thanks
ian

talizman

iTrader: (1)

The flat rate is normally determined by the age of the vehicle in question.

For new cars, you should be looking to get circa 3% flat rate.

On my MY99 Impreza, they were quoting 6% flat rate due tot he age of the car.

At 4.9% flat rate, you will pay back £1,764 in interest on a £12k loan. (36 x £382.33)

Not too shabby if you ask me, so no I don't think you've been done!

UkLegacyT

phew thats a relief!

the van is new, its a transporter 174 (goes like stink btw lol) and loads of extras. haggled the van from 23k down to just under 20k.

plan to pay it off in 12mnths (own business, so tax bill coming soon...aarrgggghhhhh!!) and wont get stung for doing so, so its not too bad i suppose.

thanks again for your help, its put my mind at rest

ian