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+--- Thread: Evoque - Guaranteed Minimum Future Value (GMFV)? (/Thread-Evoque-Guaranteed-Minimum-Future-Value-GMFV)
RE: Evoque - Guaranteed Minimum Future Value (GMFV)? - Pricy147 - 15-07-2011 04:05pm
There seems to be a mixture of standard and flat rate APR figures quoted in this thread.
If you are getting finance - make sure you know whether its a flat rate or not (i.e. interest is front load on the whole sum x the number of years). If it is - then you can pretty much double it to get the true APR.
e.g. 4% flat = ~ 8% APR.
With standard loans, as you reduce the capital - so the interest reduces. Flat ignores the fact you are repaying X amount early, and just adds the whole amount to the loan.
A killer if you want to pay off early.
Most salesman try and skip this 'minor' point, and just quote the headline figure - which is not reflective.
RE: Evoque - Guaranteed Minimum Future Value (GMFV)? - SW6RR - 15-07-2011 04:11pm
Good point, I think everyone here is quoting APR though (beware if you aren't!)
Actually, maybe not - that LR rate looks very low - is that APR or flat rate? If it's APR then it's excellent...
RE: Evoque - Guaranteed Minimum Future Value (GMFV)? - Pricy147 - 15-07-2011 04:27pm
If its below 6% - expect flat rate. Best bank loan standard APR rates are high 6s. Unlikely to get finance beating that!
RE: Evoque - Guaranteed Minimum Future Value (GMFV)? - cjfp - 15-07-2011 04:45pm
On my Freelander, LR quoted me a Flat Rate. They did acknowledge that any lump sums paid off would not have an effect on the overall interest (but they would be happy to take them, surprise surprise!), but they did say that there would be an interest rebate if the entire sum were to be repaid early.
RE: Evoque - Guaranteed Minimum Future Value (GMFV)? - Pricy147 - 15-07-2011 04:49pm
the interest rebates are usually pathetic tho. I remember being shell shocked the first time I took car finance - when I was young and nieve!
RE: Evoque - Guaranteed Minimum Future Value (GMFV)? - SW6RR - 15-07-2011 04:57pm
I'd say that finance nudging 5 or 6% from Land Rover will definitely be flat rate - their APRs are always up around 10%.
Griff has a fixed rate of 6.5% APR from Clydesdale which seems to be the best fixed rate product so far.
My floating rate is 3.5% above base APR, which is pretty ludicrously good (I thought!). I'm not fussed about the interest rate risk. Without wishing to get into a never ending discussion about the economy, I can't see interest rates rocketing up anytime soon by lots of % - they would stuff the economy totally. 50bps increases every so often over the next few years I reckon, not enough to make a fixed deal cheaper (or not by so much that I'd care either way...).