Ford Finance

ukjoel

Ok - I use to sell these, and train people to do the same so I can guess whats happened.

The dealer makes £1000 on the car of which the sales guy gets £150 commission.

However the sales guy will make another £150 on the Gap, and £150 on the warranty, and depending on which dealer it was up to £1000 on the finance. This may sound astronomical but if your credit history is ok and they didnt put you through sub prime then 27% over a long term like 5 years is worth 5k to them.

The good news is they cant link the finance to the car. The finance is also unlikely to be Ford - its probably Black Horse, or Capital etc. Ford dont charge 27% APR as its bad for business.

The guy you are dealing with is a used car sales monkey who saw you coming. He is greedy and to be honest thats what makes him good at what he does. Your his xmas present and he will lie to you because your paying for half his salary this month.

You need to talk to the General Manager at the dealer - Dont talk to the used car sales manager - he may well side with the salesman.

The GM will be more level headed and rational.
Explain you want the car and have put down a deposit but you dont want the finance (at that rate) or the Gap or warranty.

Tell him what rate of loan you have been offered and ask him to match it.
Dont lose a nice car because the salesman was greedy.

Also ask for a different salesman to complete the transaction.

If they are unable to complete the transaction then you would like your deposit back.

Dont let the salesman bully you - go straight over his head.
There are a lot of good used car sales people out there but also a lot of wide boys who will have the shirt off your back. It happens at all the main dealers.

How much are you paying for Gap and Warranty. Tonight get a quote on both from Warranty Direct or another internet site. Then challenge them to match it. If they cant say thanks but I will take the car without the extra products.

Do your research and then do some more.

Hope this has helped.

CHR15

For what benefit would anyone have to sign a breakdown of costs??

petexa

ukjoel wrote: »

Ok - I use to sell these, and train people to do the same so I can guess whats happened.

The dealer makes £1000 on the car of which the sales guy gets £150 commission.

However the sales guy will make another £150 on the Gap, and £150 on the warranty, and depending on which dealer it was up to £1000 on the finance. This may sound astronomical but if your credit history is ok and they didnt put you through sub prime then 27% over a long term like 5 years is worth 5k to them.

The good news is they cant link the finance to the car. The finance is also unlikely to be Ford - its probably Black Horse, or Capital etc. Ford dont charge 27% APR as its bad for business.

The guy you are dealing with is a used car sales monkey who saw you coming. He is greedy and to be honest thats what makes him good at what he does. Your his xmas present and he will lie to you because your paying for half his salary this month.

You need to talk to the General Manager at the dealer - Dont talk to the used car sales manager - he may well side with the salesman.

The GM will be more level headed and rational.
Explain you want the car and have put down a deposit but you dont want the finance (at that rate) or the Gap or warranty.

Tell him what rate of loan you have been offered and ask him to match it.
Dont lose a nice car because the salesman was greedy.

Also ask for a different salesman to complete the transaction.

If they are unable to complete the transaction then you would like your deposit back.

Dont let the salesman bully you - go straight over his head.
There are a lot of good used car sales people out there but also a lot of wide boys who will have the shirt off your back. It happens at all the main dealers.

How much are you paying for Gap and Warranty. Tonight get a quote on both from Warranty Direct or another internet site. Then challenge them to match it. If they cant say thanks but I will take the car without the extra products.

Do your research and then do some more.

Hope this has helped.

That has helped mate, we have a meeting with the used manager, think we better make an appointment with the general manager.
I feel alot more confident in going there.
Thanx again.:D

chambta

ukjoel wrote: »

Ok - I use to sell these, and train people to do the same so I can guess whats happened.

The dealer makes £1000 on the car of which the sales guy gets £150 commission.

However the sales guy will make another £150 on the Gap, and £150 on the warranty, and depending on which dealer it was up to £1000 on the finance. This may sound astronomical but if your credit history is ok and they didnt put you through sub prime then 27% over a long term like 5 years is worth 5k to them.

The good news is they cant link the finance to the car. The finance is also unlikely to be Ford - its probably Black Horse, or Capital etc. Ford dont charge 27% APR as its bad for business.

The guy you are dealing with is a used car sales monkey who saw you coming. He is greedy and to be honest thats what makes him good at what he does. Your his xmas present and he will lie to you because your paying for half his salary this month.

You need to talk to the General Manager at the dealer - Dont talk to the used car sales manager - he may well side with the salesman.

The GM will be more level headed and rational.
Explain you want the car and have put down a deposit but you dont want the finance (at that rate) or the Gap or warranty.

Tell him what rate of loan you have been offered and ask him to match it.
Dont lose a nice car because the salesman was greedy.

Also ask for a different salesman to complete the transaction.

If they are unable to complete the transaction then you would like your deposit back.

Dont let the salesman bully you - go straight over his head.
There are a lot of good used car sales people out there but also a lot of wide boys who will have the shirt off your back. It happens at all the main dealers.

How much are you paying for Gap and Warranty. Tonight get a quote on both from Warranty Direct or another internet site. Then challenge them to match it. If they cant say thanks but I will take the car without the extra products.

Do your research and then do some more.

Hope this has helped.

Top advice for anyone mate.

Lemonade_Pockets

I wasn't going to bite but sod it. Yet again you seem to have the principle but over egged it somewhat Joel my dear friend

£450 for selling a car with £1000 profit + Gap and Warranty. I wish i could work there.

Let say i sold 15 cars a month. Lets say 5 blew there !!!! out and where cash no bits so that leaves 10 deals with £1000 profit and Gap and Warranty not unrealistic in itself. But by your figures i'd earn £450 per deal.
Wow that's £4500 a month plus a £10-12K basic lets call it £65k a year. Sweet mother of christ!!!!

And that's ignoring the finance commission which apparently a salesman can earn 20% on.

Can you PM me the dealer network you used to work for please i want to send them my CV, I'll start tomorrow. Sod being an accountant, should've stuck to sales.

Anyway sorry as i said before everything that you've said in principle is correct and good advice just most of your figures are somewhat ambitious.

ukjoel

Glad you got a meeting sorted. It could go one of two ways. They could back down OR they sales manager who works day in and out with the sales guy may decide he prefers his version of events. After all they are a business not a charity....

So here are a few things to think about and plan for before you go.

Heres the facts that they may put forward and also the information that you will need to counter those. As I said before be prrepared.

They say - Your a bad credit risk so we couldnt get you a competitive rate.

You say - Thats funny - here are 2 examples of competitive rate deals I got from the internet/high street.

They say - we gave you loads more than your crappy part ex was worth.
You say - here are a whole page of auto trader adverts showing what its worth.

They say we discounted our Ford focus by 2k for you.
You say here are 10 examples from auto trader of similarly priced cars

They say none of these are from main dealers with the same level of support.
You say here are examples from Inchcape, Dagmo, etc

They say our warranty and gap are better than anyone elses.
You say prove it - I havent had it all explained to me by the salesman - apparently thats in contravention of FSA rules :rolleyes:.

Also look up FSA regulations before you go. If they offered you and you accepted GAP and Warranty maybe you took Payment protection as well. Maybe it was missold. Cant comment on your case without knowing all the circumstances but ask for copies of all the paperwork you signed and also worth discretely taping any meeting.

At the end of the day worst case scenario you are £150 worse off but they dont want a complaint to the FSA, to trading standards, to Ford head office, to their Chairman etc etc.

Let us know how it goes .

ukjoel

Ah Lemonade

Different dealers work in different ways. Some will have a Business Manager who will do all the finance and get paid in the same manner as a sales manager based on F&I (Finance and Insurance) volume and profitability.

Others dont have a Business Manager and sales guys are given the freedom to do pretty much what they want as long as theres loads of money in the deal.

The bigger dealer groups all have their own in house systems which are updated daily by the finance companies and work in the following way. They offer 200-300 different rates and timescales and then pay a different % profit to the retailer on each one .

Think of a dealer version of Moneysupermarket.com.
You put the customer details in to establish credit rating.
You then do what happened in this case which is ask the customer HOW MUCH DO YOU WANT TO PAY A MONTH.
Customer says £250 so they put in 250 a month over 60 months (max allowed in most systems) and BINGO computer shows profit for them is HUGE.

This isnt a standard deal - These are the kind of deals we used to laugh about over a coffee and talk in hushed whispers when the customer came in.
Hence the commission is mega too.
Whether its going to the sales guy, the Business Manager, or the Sales manager the money is definately going to the dealer.
As the OP said the interest rate was 27% - Its big money.

Regarding GAP and Warranty.
Gap costs a dealer about £80 and warranty costs about £150 for a 2 year average warranty extension. They sell for £299 and £499. Nice profit margin and normal practice is offering big bonuses for selling these and have seen 50% paid on anything higher than that price.
£999 warranty anyone?

This is how these things are sold mate. YOu put the package down - How great is this - if your car breaks we fix it - a repair can cost thousands - how much do you think this warranty is worth to you - peace of mind - etc.
Oh £600? - per year you say. Well I can do it for £900 for two years because I really want to look after you. Let me just make sure I can bend my managers arm on that etc etc.

petexa

thanx for all the comments, great advice coming through, some sarcasm but that helps with the pain of being dumb.
Wish i asked all these questions before we went there.
i have never gone to buy a car from a dealers before and neither has my girlfriend. So we was please to be very looked after andi can admit i was taken for a ride, it wasnt until i looked back on how we was taken hook line and sinker and its scary what we let them get away with.
I will personally stand up and admit i was nieve and stupid.
But im glad we both relised this before it was too late.
Must say thanx and i will let you know how we get on.