- What do I need to know about total amount payable?
- How does it differ from total amount payable by customer?
- Parkers explains car finance terms
Total amount payable is the overall amount paid to purchase a car through a finance scheme – excluding discounts.
What do I need to know about total amount payable?
This figure is displayed in PCP and Hire Purchase quotes, showing the overall figure paid to buy a car at the end of a finance scheme – excluding any contributions from the car dealer or manufacturer.
It doesn’t take into account deposit contributions or list price discounts. As a result, this may not represent how much you will pay over a finance plan – that figure is referred to as total amount payable by customer and is provided by a handful of manufacturers.
How does it differ from total amount payable by customer?
If you’re looking to establish how much you’ll pay over a Hire Purchase scheme – and if you make the optional final payment to take ownership after a PCP deal – you’ll want to look at the total amount payable by customer figure.
As deposit contributions can amount to more than £20,000 in some cases, this is the figure which shows how good value a finance scheme is.
The car referred to in the image above may feature a total amount payable figure of £39,270 – nearly £3,000 more than the list price – however, a £5,800 deposit contribution means that you’ll actually pay nearly £3,000 less than the list price if you buy the car at the end of the scheme.
Total amount payable by customer