Jzk for your response.
Lastly is the following transaction halal as it’s fixed? I’ve done a bit of research on car finance as long as the term agreement is fixed it’s fine. Companies use the term interest. It’s usually the profit they make from the delayed payment of the vehicle.
Just need some clarification as it can get confusing:
Personal Contract Purchase (PCP) Finance Example: Cash Price £28,700.00. Total Deposit £5,740.00. Total Amount of Credit £22,960.00. Annual Mileage 10,000 miles. First Payment of £405.14, Followed by 47 Payments of £405.14, with an Optional Final Payment of £12,524.00. Duration of Agreement is 49 Months. Option to Purchase Fee £10.00. Fees are included in the payments shown. Interest Charges of £9,000.72. Total Amount Payable £37,710.72 Annual Fixed Interest Rate of 12.18%. APR 12.9%.
Finance is provided by Black Horse Limited, St William House, Tresillian Terrace, Cardiff, CF10 5BH. This is not a commitment to lend and applications are subject to approval. This indicative quotation is subject to change and final figures will be provided on approval and prior to signing the agreement…