Partly Cloudy

Partly Cloudy

max temp: 21°C

min temp: 18°C

Search

The pigs have arrived. See the latest

Pigs Gone Wild

news here.

Figure out best overall finance deal for you

06:44 10 July 2014

Interesting advice: Simon Gray of Credo Asset Finance.

Interesting advice: Simon Gray of Credo Asset Finance.

Archant

Simon Gray, of Credo Asset Finance, says figure out the whole finance package not just the monthly payment.

Payment, payment, payment – what’s it going to cost me per month?

Well, how about asking a different question – how much are the interest charges?

So here’s a couple of examples on the same car which costs £22,000 and, with a £2,000 deposit, has you borrowing £20,000.

One – 48 months at £311.22 per month with a guaranteed future value of £9,573.80

Two – 36 months at £429.71 per month with a future value of £7,500.

Now budgets may dictate that we go for option one – it’s £118 per month cheaper after all. But which is better value?

Firstly, simply multiply the payments out – this gives option one repayments of £24,512.36 against £22,969.56 in option two – now which is better value?

Also the APR on option one is 8.1% against 7.5% in option two.

Now which one would you prefer?

The moral of the story is never be flattered just by the monthly payment – look at the finance package as a whole, look at the total you pay, look at the APR.

I would always suggest you pay up to your total budget, not below it. The more you pay per month – assuming the underlying rate is the same – the less finance charges you’ll pay. This will also impact on the equity you will have in your car when, and if, you settle early. And that will impact on the payments you make, or the car you can afford, when you come to change next time.

Sometimes, I’ll be first to agree, if your budget in this example is £315, then option one is probably the only deal you could do – and you’re getting into it for the right amount per month – but if not consider things in more detail.

If in doubt speak to a good, independent finance broker who can do all the maths for you and hopefully direct you to the deal that best suits you and your circumstances.

Credo Asset Finance is at 85 Yarmouth Road, Norwich, NR7 0HF. Phone 01603 703180, email sales@credoassetfinance.com, log on to the website at

www.credoassetfinance.com. Twitter: @CredoFinance, Facebook: www.facebook.com/#!/CredoAssetFinance

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Dementia friendly pub, the Hadleigh Ram

A Hadleigh pub has been rewarded for its efforts to become accessible to all by being named the first dementia friendly restaurant in the town.

Eastbound A14 traffic near the Copdock junction. Image: Keith Mindham

Drivers are currently experiencing long delays after a car crashed into the central reservation on the A14 eastbound at Nacton this evening.

Suffolk Police PCSOs (stock picture)

Two new PCSOs will be patrolling the streets of Bury St Edmunds from next January in a new step for local policing.

File picture of a car fire.

Firefighters were called to reports of three cars alight at a garage in Ipswich.

Andy Beckwith

A former Essex man who went missing in Gibraltar has been found “in good health”, police have said.

Police at the Ipswich v Norwich derby.

Suffolk Constabulary has yet to confirm it will have a presence at Ipswich Town games this season - including the potentially powderkeg Old Farm Derby.

A motorist involved in a crash on the A14 in which a teenager died will live with the “huge remorse” for the rest of his life, a court has heard.

Relax and unwind

When the weather is as glorious as this, you want to do nothing more than sit back and relax.

St Helena Hospice assistant nurse Emma Young reduced staff and patients to tears in Colchester after performing Adele's Make You Feel My Love. Pic: St Helena Hospice.

A video of an assistant nurse performing an Adele song at a Colchester hospice has gone viral.

Hugh O'Neill, headteacher of St Benedict's School, Bury St Edmunds.

Turbulent times are ahead for Bury St Edmunds schools with “chaos” predicted as the two and three-tier systems compete against each other.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24