I’ve just received my first statement from my first PCP car agreement and I’m very confused.
My credit amount was £20,500 ish and my statement shows that my opening balance 29 days later (when my first monthly payment was made) was over 15% more at around £23,800.
The interest rate is 4.9% and it’s a 4 year term with a balloonPCP of about £12,000 at the end.
I thought I understood how these things worked but I’m baffled by the increase in the amount on my account by over £3,000 in the first month.
Can anyone explain this to put my mind at rest please?