Re: [doc] autotrader delorean - APR Clarification

["claire_usher71" <claire_usher71@xxxxxxxxxxx>]

if I can just ad my 2pth as someone 'lucky' enough to work in the
motor trade....one thing we do get a lot of is customers saying "whats
your APR?" when you start talking to them about car finance.  APR's
can be very misleading, as things like document fees, option to
purchase fees, length of agreement, amount borrowed, etc all affect
the APR.  You could have a really low FLAT RATE of say, 4%, but if you
only borrowed £500 over 12mths you would get a stupidly high APR of
something like 40% (actually, I'll work it out tomorrow and find out
what it comes out as).  As a general 'rule of thumb', the APR on a
typical 2 or 3 year Hire  Purchase is usually about double the flat
rate.  To give you an idea, tonight I quoted a guy 4.9% Flate rate
over 36mths on a balance of £10499 - came out at 10.9% APR.  The guide
is, dont be taken in by Lombard Direct et al with their "typical APR
of 6.9%", always compare monthly payments. A low APR doesnt always
mean a low monthly payment and its the flat rate of interest that you
really need to know as that is what you are actually paying.

Claire
#2292 DOC171
Sales Exec, Waters Renault, Letchworth, Herts



> I assume this is an ironic joke? 
> For a car whose cash price is claimed to be £10,995, this means that 
> you are paying £1,000 for deferring payment of £995 for 12 months.  
> Over 100% APR!  I'm in the wrong business!
> 
> Colm
> #5706






DOC UK Website: www.deloreans.co.uk
Unsubscribe: doc-uk-unsubscribe@xxxxxxxxxxxxxxx
** Unless otherwise stated, all messages posted to the group are assumed public and may be printed in the club magazine **

Yahoo! Groups Sponsor

ADVERTISEMENT

---

Yahoo! Groups Links

• To visit your group on the web, go to:
  http://groups.yahoo.com/group/doc-uk/
   
• To unsubscribe from this group, send an email to:
  doc-uk-unsubscribe@xxxxxxxxxxxxxxx
   
• Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.