| Quad Bike Finance - Getting The Best Deal! | | | | borrow over a longer period will reduce the APR |
| Picture this - You see a Quad Bike, ATV or Buggy | | | | considerably. To get some idea of how much you are |
| for sale and you have not got the cash right now | | | | going to pay back in interest you have to know the |
| but would love to buy it, so what do you do? | | | | basic lending rates. |
| Would you either call in to the bank, building society | | | | Should you wish to find this out, all companies must, |
| or even an online finance house and see if you could | | | | on request, tell you what the base rate of interest is |
| get a loan to pay for that dream machine, right? | | | | that you are paying. A typical example of how to |
| Well before you do, I would like to open those eyes | | | | work out what you will be paying back is displayed |
| to a little known trick that has been around for some | | | | below. |
| time yet is not obvious to the untrained eyes. Sit | | | | Example - £3000 over 36 months |
| back, relax and let me show you just how clever | | | | If the base lending rate of interest is 7% then you |
| some of these loan companies really are. | | | | need to do the following calculation to work out how |
| Typical Examples | | | | much your Quad Bike or ATV will cost you. |
| A typical example is the normal way a finance or | | | | 3000 x 7% = 210 x 3years = £630 |
| lending facility displays it's rates to give you an idea | | | | £3000 + £630 = £3630 total borrowed including |
| of how much you will have to pay back on say a | | | | interest. |
| loan agreement of £3000 over 36 months - with a | | | | Divide this by 36 = £100.83 per month. |
| Typical APR of say 14.9%. The law states that | | | | Arrangement Fees |
| anyone quoting APR's has to demonstrate this type | | | | Some lending companies will include two other fees |
| of example, but is it giving you the complete picture? | | | | which are the loan set up fee (loan arrangement) |
| Personal Loans | | | | which is added to the first payment - and the |
| Quad Bike Finance is something that you don't see | | | | cancellation fee which is added to the last payment. |
| advertised due to lending companies not being able | | | | This will then remove your details from the finance |
| to calculate future values of machines. This has | | | | register to say you have cleared the full amount. |
| meant that most lending facilities design something on | | | | An example of how much you will pay will depend on |
| a personal load basis so you can fund the future | | | | where you borrow the funding from. Banks seem to |
| purchase of a Quad Bike, ATV or Buggy. | | | | add the most on so they can reduce the lending |
| APR | | | | rates making the APR look more attractive. |
| Looking at an APR can sometimes be very difficult | | | | (Sometimes between £100 & £150 set up and the |
| to calculate how much interest you will be paying | | | | same for cancellation.) |
| over the period. The reason for this is because the | | | | Finance companies will be slightly lower with set up |
| APR will vary depending on the amount you borrow | | | | costs between £85 and £125 depending on which |
| and the period of time you take it over. | | | | facility you decide to use. An average cost to set up |
| The smaller amount you borrow and the shorter the | | | | a loan with any major finance organisation should be |
| term will increase the APR figure, and the more you | | | | between £90-100. |