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Can someone help me run the numbers on this?

  • 01-11-2017 03:26PM
    #1
    oB1
    Registered Users, Registered Users 2 Posts: 706 ✭✭✭


    Good People of Boards.ie - Can someone who is better at Maths than I, help me understand the figures of my Car Finance / Hire Purchase Agreement?

    Lender: AIB Finance & Leasing
    Car Purchased: June 2016
    Cost of car w/Dealer: €19,850 - less deposit at source = €19,650
    Total Financed: €19,650
    Admin Fee: €63.49
    Term: 5 Years
    Re-Payments: €397.32 x 60 Months

    The % of interest is unclear and that's what im trying to figure out. On the Finance Account, there are 3 separate line items posted:

    Finance Amt: -19,650.00
    Charges: -4,189.20
    Admin Fee: -63.49

    Balance Due: €23.902.69

    The interest, it seems, has been front-loaded on to my agreement. When I called AIB Finance & Leasing I was told that it's about 8.3% APR but the Interest was front-loaded in order to keep the payments the same each month.

    If it's APR 8.3% then that would be, going on the annual closing balance:

    Year 1: 8.3% of 19,650 = 1631
    Year 2: 8.3% of 14,882.10 = 1235
    Year 3: 8.3% of 10,114.32 = 839
    Year 4: 8.3% of 5,346.48 = 443
    Year 5: 8.3% of 578.64 = 48.00


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