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Discussion Starter #1 (Edited)
Hi all,
This is actually my very first post on any sort of internet forum :p

I have been looking to buy a car for over 6 months and have been struggling over Civic or Golf (boring?). Anyway, I test drove Civic 1.4 i-vtec and it was far better than what I expected, hence I decided to go for it.
Now, I do have a shameful inability of not being able to drive manual gearshift, so i-shift is an only option (which is miles better than my current 4 speed traditional automatic gearbox anyway).
I have been saving up some cash for this car and it's my very first car to purchase with my own money, so I am going through a lot of say..learnings as I am a total newbie when it comes to buying a car or a car valuation. I will list out what has happened to me, and would like to have some suggestions.
Here goes.

I was initially going for a p/x + cash payment for a 2nd hand approved civic. one I saw is being sold around £12,000. After doing some research, I came to the conclusion it was reasonably priced, and decided to go for it as long as I get a "good" deal (how optimistic was I?)
When I declared my interest, they suggested me a PCP deal, with a flat rate of 4.1%. They said the best thing about Honda finance is not hiding anything to the customer.
The problem is, I have been doing my small mathematics, and numbers didn't match.
With the total fee payable to be £12064.49, the initial payment would be£2800, hence the remaining is £9264.49.
For the remaining value, they quoted me I will be liable for
£176.85 x 36 months, and
£5397 including £150 admin fee for final payment (which is a guaranteed value at the end of 3 year span, which I can walk out by returning the car)
If I add the total payable amount, it is £11763.6.
What I don't understand is, even taking the consideration of flat rate compound interest, the total payable amount should stay at
£9264.49 X 3 years of 4.1% flat rate = £10451.38. There is a whopping difference of £1312.21.
I sent an email questioning the reason for difference, and the dealer answered

"it is always difficult to work out the interest charges on PCP or HP with a Balloon payment, I always quote the flat and fixed rate and to be honest the computer does the rest."

I understand that the computer is doing a lot of jobs for us now, but I really do think human should have enough control on computer to at least give me an appropriate explanation for the differences.

They explicitly said they can't crunch any sort of deal with a cash/debit payment.
so now I am with three options, go for PCP, go for one big payment, or walk out (ah! of course!)

What's your opinions on this matter? Is it normal to have this extra cost incurring (although it's a bit too much to simply consider it "a bit of extra" to me)?
Any feedback or suggestions would be appreciated

Cheers for reading this long long post,
 

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I can't offer any advise however if a dealer is selling finance then it is regulated industry and they must quote the APR in order to allow you to make a fair comparison. For the very reason the salesman claims its difficult to show the cost with a balloon payment.
 

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Arfurs right hand man
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get him to show you the quote that is calculated. It will have the interest costs, along with the monthly payment, APR and all relevant figures,most importantly, the total amount payable.
 

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Discussion Starter #4
Thanks for the replies.
I will need to ask for a proper APR tomorrow.
He indicated that total amount liable would be £11763.6, but considering the p/x and deposit etc, it would be £2800 + £11763.6 = £14563.6.
Well, more I look at it, looks like there is no way I will pay extra £2563.60 for the car.
I guess I just felt it was inappropriate and made the deal look less trustworthy when I found that the numbers didn't add up.
Might have to wait for another civic to be on the market :(
 
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