Santander Car Loan final payment shocker

McKneff

Come on Nelly,we were all young once, we were allowed to be niave.
We all get around the learning curve, eventually. lol.

nelly12

McKneff wrote: »

Come on Nelly,we were all young once, we were allowed to be niave.
We all get around the learning curve, eventually. lol.

I know, it was more directed at the op rather than his son. He was basically accusing the finance company of wrong doing rather anything constructive. Sorry I'll crawl back under my shell. lol.:)

poppasmurf_bewdley

As has been said before in this Forum, It used to be called an Option to Purchase fee and my first one was £2 in 1968. Guess the companies have got greedier since then.

Vikipollard

Available Car also use Santander, and it is normal for the £299 fee to be added to the last payment (it was to ours). It does clearly state it though, (on their finance page at least ~ dont know about your son's place), and on the agreement you receive.

On the positive side, at least they've given him advance notice to remind him about this additional £299 to be taken out :A

Ingi73

The finance companies use these fees to offset lower loan rates, you should look at the overall APR and then decide if it is a rip off, remember the APR has to include these charges.

jonesMUFCforever

Nearly every car dealer I have visited always start off offering me a 'rate' lower than 'my' bank.
When you ask for details it is always nearly the flat rate they quote NOT the APR!

Does not matter who you are or how old you are you always have to be on your toes when signing up for any credit.

Congratulations to your son paying off his debts (well nearly anyway).

27col

Geoff_I wrote: »

Well he was shocked when he read the letter this morning, when there young they will sign to anything, he probably did not see that clause, oh well I am sure he will read the small print in future.

I'm betting that he did not see any of the clauses, in his joyful anticipation of getting a car. Easy mistake to make, but he will know better next time I hope.

annab78

I called Santander to confirm the date of the final payment on some car finance to be told it would be a heart stopping £424 (the monthly payments are £99.31).
I too have queried this as I am neither naive or (that) young!
I would not have signed the agreement other wise. I've had loans and finance previously and pride myself on sitting there until I've read all the fine print - I am certain I never read anything of this.

I originally signed up with GE Capital but this was sold to Santander. I am waiting for a copy of the agreement stating that a big final payment is necessary (I tore the house apart looking for the agreement but failed!)
Should be interesting as I think they are talking bull - if all else fails the dealership is very close to where I am and I will be paying them a visit!
To be continued......

sv650s

i would stay away from Santander, the Spanish banking system is in a mess and they hold one heck of allot of Spanish Gov Bonds in order to leverage their balance sheet.

Their risk models (RWA) will say that these bonds are risk free - with Greece on the verge of default I think not.

The senior people in these firms and in particular Santander or (STD- this is their share ticker!!!) get paid out in bonus based in the Return on Equity Invested numbers. The higher the leverage on the balance sheet the higher the REI figures are.

They are incentivised to gamble the farm/bank in the hope that the "muddle through" scenario will work

Just saying...

Brock_and_Roll

Was the contract a Hire Purchase agreement? (i.e. a deferred sale)? If so is this "final payment" referred to as a "purchase option"?

If this is the case then the relevant accounting standard states that the "purchase option" should be a "bargain". By "bargain" it means a figure that would be paid without question in almost all circumstances.

Certainly in all my 25 years working in the finance industry I have never heard of "purchase options" anywhere near £299. In fact even on deals of £1m+ to corporate customers, £100 would be high, £10 the norm.

If your contract is a HP, I would write them a cheeky letter saying that you will contact their auditors and suggest that the contract be re-classified as a lease - this would be a VAT nightmare for them!

If they have the the "final payment" as an admin fee etc, I am afraid you are stuffed - just dont use them again. Mind you the way things are going they will get their cumuppance anyway!!!


....but then I am a pedant!