Help please im hopeless at figures so?

Question

could someone tell me what i would pay back in finance for a car i was thinking of buying, they tell me they will give 5.5% apr what would the end payment be over 5 years the cost of the car is £8.500 thanks a million I think I may be being ripped off! as they say i will pay back £13.335 I dont think that is right HELP PLEASE cos there is no way im paying back £5.500 on interest for an 05 plate car THANKS MILLIONS xx

Answer 1

In the UK the seller is obliged by law to give you a written quotation for the finance if requested. In practice this will be supplied by the finance company. It will show all elements of the agreement including the total payable at the end of the day. You can compare this with  the agreement document you will be asked to sign if you go ahead. This will ensure no mistakes are made.

Answer 2

With a 5 year loan with 5.5% APR, you pay 1,242.28 in interest.  Therefore, you end up paying 9,742.28 for the vehicle.  

Answer 3

8,500.00 GBP = 15,852.30 USD

8,500.00 EUR = 12,485.12 USD

If that is euros, you'll pay back $1,823.42 (in US dollars) in interest, plus the 60 months of principal.

If that is pounds, you'll pay back $2,315.54 (in US dollars) in interest, plus the 60 months of principal.

*** May I point you in this direction, very easy to use:

http://www.bankrate.com/brm/auto-loan-ca...

or

http://www.carfinance.co.uk/calculator/c...

Total Repayment: £8967.50 (£8500.00 over 5 years)

Over a period of 5 years, this equates to £149.46 a month.

Answer 4

That isn't right, 5.5% of 8500 is £467.50.  After the first year the interest should be less as you will have paid back some of the money.

The first answer is wrong because 5.5% is the annual percentage rate - the amount you pay per year.