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Discussion Starter · #1 ·
hi, i'm in the process of finalising my scirocco payments etc and need a bit of advice if possible. my local vw have created a finance quote for me wih a flat rate of 4.9% i gather this is roughly 9-10% apr, does anyone think this is a good deal on a £20k scirocco? i'm going to be on a 36 month pcp by the way.
 

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Discussion Starter · #3 ·
TonyIroc said:
Donnie

I thought that all dealers have to quote you an exact APR so you can use as a comparison. If not ask.
thanks tony i'll ask tomorrow :) i worked out that 4.9 flat rate is actually quite good over 3 years. the amount of interest i would pay over the 3 years worked out almost exactly the same as 6% apr, which is good.
 

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sounds like about 10% apr but impossible to work out without software if its pcp, depends how the finance company calculates the interest, good rate for pcp on a scirocco though we fi to 9.9%apr or 10.9% apr for scirocconet depending on balance, hp we work off a flat rate
 

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Discussion Starter · #6 ·
i think i got a bit of a bum deal. i put a 30% deposit down, so total price of car for me is £13606, i'm paying £181 a month over 3 years but at a rate of 10.32% apr which i think is rubbish considering i'm only paying 4.9% apr on my current car. the final balloon payment is £11685, so over 3 years i'm paying £6335 but only £1921 is actually going towards the car the rest is going to them! i shouldn't have signed should i!?
 

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donnie darko said:
i think i got a bit of a bum deal. i put a 30% deposit down, so total price of car for me is £13606, i'm paying £181 a month over 3 years but at a rate of 10.32% apr which i think is rubbish considering i'm only paying 4.9% apr on my current car. the final balloon payment is £11685, so over 3 years i'm paying £6335 but only £1921 is actually going towards the car the rest is going to them! i shouldn't have signed should i!?
Sounds a bit much to me. Are you still in the cooling off period? Did you check with your Bank??
 

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Discussion Starter · #8 ·
imitebeurda said:
donnie darko said:
i think i got a bit of a bum deal. i put a 30% deposit down, so total price of car for me is £13606, i'm paying £181 a month over 3 years but at a rate of 10.32% apr which i think is rubbish considering i'm only paying 4.9% apr on my current car. the final balloon payment is £11685, so over 3 years i'm paying £6335 but only £1921 is actually going towards the car the rest is going to them! i shouldn't have signed should i!?
Sounds a bit much to me. Are you still in the cooling off period? Did you check with your Bank??
i checked with my bank but they wouldn't give me a loan unfortunately. yea i am still in the cooling off period, i think i might try and cancel it or get them to change the amount of apr at least. how long is the cooling off period? i only signed the agreement on friday
 

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Discussion Starter · #11 ·
thanks for your help. one more thing, the interest rate is 10.3 isn't it suppposed to 0.5 at the moment??
 

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donnie darko said:
thanks for your help. one more thing, the interest rate is 10.3 isn't it suppposed to 0.5 at the moment??
0.5% is the Bank of England base rate, when borrowing money to a greater or lesser degree this is irrelevant. Firstly, dependent on the "financial soundness" of the institution you are borrowing from you have to look at how much they are being charged to buy money in. This is generally what you hear as LIBOR (London Inter-Bank Offer Rate) which for 3-month money is about 1.3%. This is the rate banks lend to each other at.

However, some institutions that have been in financial difficulty may be charged more than this. I know for instance one Bank that is paying nearer 3% for its money (and some are more). So this is the "cost" of your money to them. Then it depends on how much it costs them in overheads, staff, processing, branch network etc. This may add another 1-1.5% to the interest.

Finally they will assess the "risk" of lending the money to you, and your credit worthiness. In the current economic times financial institutions are being very harsh in this respect (to a certain extent you are paying for the loans they think are gonna go bad), in many instances they are just saying a straight no.

So all in all its highly unlikely that you would get finance at less than 6% approx anywhere taking all the above into account. While 10.3% does seem somewhat high at the minute even getting finance is difficult and to many people the rate is secondary.
 

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Discussion Starter · #15 ·
ok thanks imitebeurda i feel a little better over the whole thing. i actually think my apr is 11% according to my agreement and the interest rate was 10.3%. so i'm probably getting conned but there you go it's fault for signing :roll:
 

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if you are taking finance through your dealer they will always ask you how much can u afford a month , do your homework first ,tell them a figure but tell them you want payment protection built in, straight away they think they have got u over 3 ways 1. cost of car 2. loan 3. loan protection sign for everything then go back and cancel payment protection if you have negotiated correctly you will of got a good rate of finance alot better than if u had just gone in and got straight finance , i have done it in the past it works but they dont like it , they make big money on loan insurance
 

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Discussion Starter · #19 ·
very interesting, so you can haggle for a better apr if you say u want the payment protection
 
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