Car Finance - Early Settlement figure

jarvo

Hi all,

I have a question about car finance I hope someone can help with.

I have seen a car I like and I have been offered a £500 deposit contribution if I take out “Conditional Sale” finance with Mazda/Santander.
I have the cash in the bank available but the garage are unwilling to do a deal for cash, this seems to be a common issue at the moment.
So im wondering if I can make the deal work in my benefit.

Car value £7,950
Deposit Contribution: £500
Part Ex: £2,100
Balance/Finance: £5,350

Term 24 months
Rate 8.9% apr

Monthly Repayments: £243.33

Total Interest over term: £489.92

Daily interest: £0.67

Setup fee £0
Completion fee £0

I haven’t signed anything yet but I would like a settlement figure for day 1, day 30 & day 90 as I intend to pay this off as soon as possible.

I have spoken to Santander Consumer finance but until the agreement is actual in place they cant give me a figure or even an example!
The garage assure me I can pay it off in the first day and it will cost very little but again they cant provide any concrete figures.

Im a little worried the interest will be ‘front loaded’ and I will be liable for the full £489.92 and therefore the £500 deposit contribution will be affectively wiped out.


Thanks for any replies

Mark.

jonesMUFCforever

If they won't do a cash deal - walk away - plenty of other dealerships will.

rndm_dc

With any finance agreement you have the right to withdraw within the first 14 days - and that's purely for the finance. My suggestion would be to get the car, get the finance. Leave it a couple of days for Santander to get the finance fully set up (usually takes a couple days) then call them and settle the finance.

The only interest you'll need to pay is a daily charge that'll be on the agreement - usually £1-2 a day if that.

However i'm bemused as to why the dealership would want you to do that - i'm pretty certain they'd lose any commission from Santander if you withdraw. But they can't stop you doing it.

chanz4

Other dealers will do deals, I would walk away. Their will still be a finance acceptance fee

jarvo

Hi and thanks for the replies 

Unfortunately there seems to be very few dealers out there that are willing to do a ‘deal’, cash seems to be a dirty word to all but the minority of them.

So far this is the 3rd car ive attempted to purchase in the last 2 weeks, all from large ‘reputable’ dealers and believe me I visited far far to many and virtually all of them were reluctant to sell without some form of finance as they were bonused on it, and I have walked away from quite a few as they “would sell the car to someone else for more!”

The first despite me agreeing a price and paying a deposit the car was sold by ‘another colleague’ before I went to pick it up for more than I had agreed.
The second refused to negotiate on the price at all, told me I was living in a dream land and to stop wasting his f****ng time, the car has since been reduced by £500 and is still for sale at slightly less than I had offered!

Which leads me onto this car which is in very good condition, has low mileage, one owner, full service history, 1 years warranty, 1 years tax & mot included and no admin fee and is from a mazda franchise… having spent several weeks searching this is by far the ‘best’ price ive been offered 

I cant see any admin fees stated, ‘Credit Facility Fee’ = £0.

I have been assured by the dealer that the interest is calculated and applied daily, therefore I will only be liable to pay the credit amount £5,350 + a few days interest upto when the settlement figure is requested.

I have decided to go ahead with the finance and get a settlement figure a day or two later.

Will give an update when I have more info

jonesMUFCforever

If you had agreed a price AND paid a deposit you both have entered into a contract.
Why not sue for loss of bargain if they do not agree to get a similar car for you?

CLAPTON

get a copy of the loan T&C s before signing, take them home and read them

don't buy a masda

jarvo

Hi jones, i just got my deposit refunded, wasnt aware i could sue but probably wouldnt as its probably to much hassle in the long run.

I have a copy of the Tc's and i cant find anything that disputes what i have been told but there is no settlement figure on there, 1/4, 1/2, 3/4 as stated should be.

Also whats wrong with a mazda?
Dpf issues discounted as its a petrol, and my mileage doesnt warrant a diesel hence the reason why im shifting my tdci focus.