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Anybody know what the APR is on a hire purchase agreement at an Alfa Dealer, I know they are running low rate promotions on some of their products but i would like to know the rate on straight hire purchase so I compare it with a personal loan.
 

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Dunno moosh.. but sometimes the dealer rate is flexible (they can pitch it at the level they need to, in order to get the sale).

Obviously the commission they receive will reduce, the lower they go.. but they probably work out the value of the whole deal (cost of the car, profit of the options, part-exchange etc.)

So should you, rather than fixate on the APR rate itself.

Ralf S.
 

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APR is just a mathematical equasion of the amount borrowed over the period of the agreement, saying that the dealer has a base rate so the best thing is to nail the salesman on that rather than an APR.
Remember that a "small" amount borrowed over a short period will show a higher APR.
Look at PCP AND HP deal's and compare the total amount payable over the period between the two.
HP would work out generaly cheaper over say a 48mth period than say a 36mth PCP agreement, and with a 48mth HP deal if you want to end it early you will get an early settlement discount.
It's a minefield ! :eek:
 
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