- What’s APR?
Annual Percentage Rate – in a nutshell, is the amount of interest a bank or lender charges on money that it lends. Calculated for a period of a year makes it an easy comparable figure, which takes into consideration the interest and fees.
If you see ‘representative’ before the APR, this is a financial service concept that ensures credit or loan interest rates quoted through advertising take into account all charges associated with a product. Not just the interest rate.
Here at Oodle we always make our APR competitive and are always honest with the amount. Transparency is in our DNA.
- What is the difference between my settlement figure and my outstanding balance?
This can be a confusing issue, but basically your total outstanding balance is the entire amount you have left to pay (Total Amount Payable – Paid to Date) whereas your settlement figure is calculated to include a rebate for paying early, which reduces the total. If want to find out more, you can always drop us an email at firstname.lastname@example.org and we’ll be happy to explain this further.
- What is equity?
Equity refers to the difference between the car finance agreement and the value of the vehicle.
For example, if your car is worth £6,000 and there is £4,000 left to pay on the car finance agreement, there is £2,000 equity left in the value of the vehicle. Once you have paid off all outstanding debts associated with the car, it then becomes your equity, because you now own the vehicle.
- What is negative equity?
Negative equity is when the value of an asset falls below the outstanding balance on the finance agreement used to purchase that asset.
Negative equity is calculated simply by taking the value of the asset and taking away the balance on the outstanding amount.
- What’s PCP?
PCP stands for personal contract purchase or personal contract plan. This is a type of car finance that Oodle does not choose to offer.
Traditional hire purchase lets the customer repay the total debt in equal monthly instalments, just like Oodle. However, PCPs are structured so that the customer pays a lower monthly instalment, leaving a final ‘balloon’ payment to be made at the end of the agreement.
The total borrowed is the same in both hire purchase and PCP, even the amount of interest, so it’s down to personal choice.
- Who are the FCA?
The Financial Conduct Authority (FCA) is a financial regulatory body in the UK but operates independently of the UK government.
The FCA regulates financial firms, like Oodle. Focusing on the regulation of conduct by both retail and wholesale financial services firms, they ensure consumers receive the service they deserve, and the UK’s financial market remains honest – just like Oodle.
- What is a VIN?
VIN stands for Vehicle Identification Number. Every vehicle manufacturer in the world assigns a unique VIN to every single vehicle they produce.
Just like a fingerprint, no two vehicles will have the same VIN.
- What does underwriting mean?
Underwriting is the term used by finance providers when they are assessing a person’s finance application to see if they should be approved for finance.
In Oodle’s case, this is an automated and regulated process that determines the risk of lending money to an individual. It also happens in the blink of an eye (a few minutes at most!)
- What is a broker?
A broker is an individual or a company who introduces the borrower to the lender and will charge a commission or fee for their services. They do come in handy when buying a new car.
Dealers tend to have a broker they recommend to their customers. And these brokers recommend companies like Oodle. Fantastic for you and us!
Alternatively you can give us a call or drop us an email. Waiting times may vary