Finance agreement for car - can you help?

masterlumps

i think its a major complicated way of buying a car, if you can pay £11,000 outright, why go through all that palavar, why not just buy the car?

Xbigman

Just to expand on my post, I was dealing with a double glazing saleslady who had an amazing cleavage which she stuck in my face at every opportunity. I was told the DG firm would pay the first three months and then I could pay off at no penalty. She kept waving the agreement in my face and would then point at some small print explaining what it meant before I had a chance to read it. I actually wanted a very short term loan because my father had just died and I was doing up his house for sale (the windows were rotten) so the loan would be cleared when the house sold or the life insurance settled. I thought I could let them pay the 3 months and then settle up. After 1 month I discovered there were penalties and things didn't work as she had stated. I complained and a helpfull customer services man told me how to avoid the early settlement penalties. The DG firm had misled me because customers needed to make 3 months of payment before the lender would pay out the commision to the DG firm, and then they paid the saleslady's commission.
He also thought they had probably bumped up the cost a bit to cover some of this.
I went through the figures and decided the best option was to pay off the loan after 5 weeks. The DG company paying the first 3 payments, which were nearly all interest, made little difference to the final amount I would pay.
I recieved a call from the DG company who were p1ssed at losing their commision. They gave me a hard time regarding their price being based in part on my taking finance and they asked for more money. I told them to 'off'. The saleslady then phoned me to have a moan because her commision had just been clawed back, which did not impress me.
Ultimately I paid out about £40 in interest on a 3k loan over 5 weeks, which wasn't bad considering my circumstances at the time.

These deals are always complicated and not designed to benefit anyone except the sellers.
If you really want the car then tell the dealers to forget about the 6 months payments and knock the equivelent off the price of the car. I bet they don't.
Regards



X

mr_sharma

Thanks for your reply and insight it is much appreciated. However now I am set-up and within the deal the car dealer has arranged for me. Predictably, the finance company has been in touch and has told me that I am legally bound to pay any fee the finance company adminsters due to early settlement but the car dealer still maintains there will be no settlement fees to pay.

I have in writing what the dealer has promised, however, and the dealer is still insisting no fees.

I've written back to the finance company today with proof of what the car dealership has offered me and will update the thread.

Many thanks for your input.