Volvo Car Advantage PCP interest rate query

[Exsee90]

If anyone else has the pcp agreement does you interest tally? Just worked mine out and it seems to be a couple of thousand over

When I ordered I was told it would be a flat rate of 3% (on draft agreement it shows 3.04% so near enough)

As I understand it on flat rate if say loan is £40k, the 3% is charged every year on full amount of loan so if 3 years they charge £4080 interest or 4 years would be £4864 interest but what I am being charged works out a lot more

I've looked back at a old pcp agreement and the flat rate works out perfectly on that one so not sure if I am missing something on this

Thanks

[nu11eaf]

Originally Posted by Exsee90

If anyone else has the pcp agreement does you interest tally? Just worked mine out and it seems to be a couple of thousand over

When I ordered I was told it would be a flat rate of 3% (on draft agreement it shows 3.04% so near enough)

As I understand it on flat rate if say loan is £40k, the 3% is charged every year on full amount of loan so if 3 years they charge £4080 interest or 4 years would be £4864 interest but what I am being charged works out a lot more

I've looked back at a old pcp agreement and the flat rate works out perfectly on that one so not sure if I am missing something on this

Thanks

Did you pay an initial payment = to the amount of the discrepancy. So that it was £40,000 + 4864 interest + deposit = total payable.

[cheshired5]

Originally Posted by Exsee90

3 years they charge £4080 interest or 4 years would be £4864

Your 4 year example figure is correct but your 3 year example is way out.

It should be £3648

[cheshired5]

Originally Posted by nu11eaf

Did you pay an initial payment = to the amount of the discrepancy. So that it was £40,000 + 4864 interest + deposit = total payable.

There could be admin fees too at both ends of the agreement.

[nu11eaf]

Originally Posted by cheshired5

There could be admin fees too at both ends of the agreement.

More than likely.

[Exsee90]

Originally Posted by cheshired5

Your 4 year example figure is correct but your 3 year example is way out.

It should be £3648

Thanks for that, bad calculator or fat fingers 😬

[Exsee90]

Originally Posted by nu11eaf

Did you pay an initial payment = to the amount of the discrepancy. So that it was £40,000 + 4864 interest + deposit = total payable.

I'm putting £8k down, did think that might be it but even adding that onto the total the interst still came out lower than I am being charged

[Exsee90]

Originally Posted by cheshired5

There could be admin fees too at both ends of the agreement.

No there is no admin fees, only admin fee on agreement is a £70 return fee or a small £10? I think option to purchase which are paid on top

[Exsee90]

Originally Posted by nu11eaf

More than likely.

It's around £2700 difference that would be one large admin fee if that was the case and I thought they would have to disclose it but fees are stated on the pre contract I have as £0

[nu11eaf]

Originally Posted by Exsee90

It's around £2700 difference that would be one large admin fee if that was the case and I thought they would have to disclose it but fees are stated on the pre contract I have as £0

Without knowing the full terms and figures its hard to offer any more help, hope you get to the bottom of it.