if a rate is 4.5%, then that's what it is (annual rate). of course, when you look at the total interest you pay over the course of the loan it will be more than 4.5% since that is an annual rate and your loan carries over several years, but when you use a scientific calculator or Excel to calculate the rate, it factors all that in.

in my case, they told me 4.1%. that's an annual rate so after 4 years the total i would have paid over and above the car price is closer to 8.5%.

BUT - the 4.1% that he told me was rubbish. the payments they quoted me equated to a rate of 8% a year, which means that the total paid over and above the car is a bit over 17%.

i'm not sure what nonsense they are using to sell their loans, but whatever it is i believe they are taking advantage of people who are not familiar with this aspect of finance, and i think it would be illegal in canada.

buyers beware...

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"Even a stopped clock gives the right time twice a day." Withnail & I