Extortionate car finance

Cornucopia

There's a balance to be had - on the one hand, I agree that chastising someone for their own lack of forethought in financial choices isn't very helpful - on the other hand, if no one made these choices, then that end of the market would come under severe pressure, and may even disappear.

It would be useful, if nothing else, if the OP could name and shame the finance provider and state the APR. If we are now talking about a 6 year deal, I estimate about 23% APR - still not even close to the worst in the business. I'm sure I have been offered higher than that by reputable main dealers on a second-hand car purchase in the past (anything up to 29.9% APR).

Car_Complaints

Cornucopia wrote: »

in the past (anything up to 29.9% APR).

I have seen over the 30% mark on car fiance before

People may sound a little negative in response, but the OP was expecting, by the sounds of things a way out of the finance deal which could be for many reasons

a: 3 years old now bored would like a new one but cant
b: Cant afford the repayments
c: Maintenance costs are starting to kick in

You make a rod for your own back when you put a question up like the OP has..they have paid it for 36 long mths, then slate the finance company for wrong doing

If the OP had come to the table with something like, "Yesterday I took out a 6year deal on finance it was £500 deposit and £140 x 72, what should I do"

Then I am sure there would of been a lot of support that would of concluded in the OP calling the finance company and cancelling

I do apologise if I sound negative but, I have no sympathy for people who sign away 6 years of finance and not read the small print or do a simple head calculation of (72 x 140)+500

If the OP does not like the response then I suggest they take the matter up with the Financial Regulators Ombudsman and let them have a laugh at their dam right ignorance.

Car_Complaints

Cornucopia wrote: »

(anything up to 29.9% APR).

You will like this one

https://www.welcome-car.org.uk/

49.9% APR

motorguy

andydiysaver wrote: »

there is a breed of people who go on these forums who seem to feel much better by calling other people stupid and ticking them off for not reading T&C's and etc and etc.


If I signed up to a ridiculous rated APR on a no win no brainer car loan do you think I'd need to hear how stupid I was/am 100 more times, or do you think I'd be more than aware of this fact every time I saw my monthly bank statement?


needless negativity in my opinion. Stupid people know they're stupid already and people who delight in telling others what rubbish mistakes they've made.......and taking the higher ground without even going outside. Then they're stupid but they're also condescending. I think the latter is worse than the former!

Whilst i agree that calling people "stupid" is crossing the line, there is a certain mentality among people - and its quite prevalent across the country - that its always someone elses fault. "Blame Culture Britain" - noone takes ownership for anything any more.

The O/P came on with that attitude - no ownership for the problem.

Had their approach been different, they may well have got "less prickly" responses.

motorguy

Cornucopia wrote: »

It would be useful, if nothing else, if the OP could name and shame the finance provider and state the APR. If we are now talking about a 6 year deal, I estimate about 23% APR - still not even close to the worst in the business. I'm sure I have been offered higher than that by reputable main dealers on a second-hand car purchase in the past (anything up to 29.9% APR).

I would say that the O/P used a car company / lender for people with poor credit history.

I would also say these figures werent "hidden" from the O/P, but were ignored.

andydiysaver

Cornucopia wrote: »

There's a balance to be had - on the one hand, I agree that chastising someone for their own lack of forethought in financial choices isn't very helpful - on the other hand, if no one made these choices, then that end of the market would come under severe pressure, and may even disappear.

It would be useful, if nothing else, if the OP could name and shame the finance provider and state the APR. If we are now talking about a 6 year deal, I estimate about 23% APR - still not even close to the worst in the business. I'm sure I have been offered higher than that by reputable main dealers on a second-hand car purchase in the past (anything up to 29.9% APR).

the way I see it, most people look at APR and do not envisage the compound element of APR. they see a percentage and measure the deal by how near to zero that percentage is


education on compound interest usually comes in the form of when they multiply up the monthly payment by the number of months and then compare it to the figure of the deal


now if they do this after signing, then they know they've been done, if they do it before, they've got no need to come on here and bemoan their crap finance deal. I think the pain is already dealt once they're on here doing that. Hence I think chastising their ignorance is a bit like slamming the door long after the horse has bolted. They already know they've been royally shafted, they can see it on their bank statement! Fair enough if they want to blame others so be it, does that save them even a quid? This is what the sanctimonious on here don't realise, most people posting about how bad loan x y or z is, have a) already taken that loan and b) know all too bloody well !

Car_Complaints

andydiysaver wrote: »

most people posting about how bad loan x y or z is, have a) already taken that loan and b) know all too bloody well !

So no need to post telling others know how stupid they have been then

People who moan about the finance price half way through the term are expecting "Captain Finance" to step forward and give them an easy way out of the finance deal...which in the eyes of the law is not going to happen

They signed the dotted line, They had a chance to do the calculations in cooling off period, they didnt, you cant blame anyone for that, only yourself.

If I was going to offer advice on what to do it wouldnt really be "good" advice, they could ring up the finance company explain their concerns but I bet you all the finance company would do is say "We can sort you out a new deal of £80pm but will be over a 4 year period" so your no better if not worse off, if you think they are going to start knocking money off or say "Youve paid enough now we will end it early" then we all know this is not going to happen

motorguy

andydiysaver wrote: »

the way I see it, most people look at APR and do not envisage the compound element of APR. they see a percentage and measure the deal by how near to zero that percentage is

The APR figure includes any compound interest figure. Its the "actual percentage rate", as if you were paying the interest on the diminishing balance (the flat rate figure calculates all the interest up front on the total loan, then applies it across the term - not accounting for the diminishing balance)

The APR here seems to be around 30%. By anyones standard thats a large number - even a cursory glance around by the O/P would have shown that.

andydiysaver wrote: »

now if they do this after signing, then they know they've been done, if they do it before, they've got no need to come on here and bemoan their crap finance deal. I think the pain is already dealt once they're on here doing that. Hence I think chastising their ignorance is a bit like slamming the door long after the horse has bolted. They already know they've been royally shafted, they can see it on their bank statement! Fair enough if they want to blame others so be it, does that save them even a quid? This is what the sanctimonious on here don't realise, most people posting about how bad loan x y or z is, have a) already taken that loan and b) know all too bloody well !

I think the point we "sanctimonious" are making is that the fault here lies with the O/P for not checking in the first place.

They have come on here talking about "extortionate" and "been ripped off" and "a disgrace".

Thats someone wanting to pin the blame elsewhere.

You're right the damage has been done, but the O/P would be getting far more constructive replies if they'd come on here and said "i've just been doing my sums here and it turns out when i knee jerked into buying a car three years i got a really crap deal, what are my options here to minimise further costs?"

This is a money saving forum, not a "who can i blame for this and how can i make them pay" forum

forgotmyname

Sisters paying over £7000 for a car she could have picked up for about £2000 in cash.

But she didnt have the cash. And the way she is going the car will be gone before the loan will.

Cant afford to service it yet complains when things break and costs even more to fix.

I dread to think what the APR is on that. Maybe the same 49.9% as mentioned above or maybe worse?

Car_Complaints

Just had a buzzing noise in my head and would like to ask something here.

The reason I am asking is that I am no PPI expert, but lets use the OP as an example, if they have been paying PPI on the finance for 3 years could they not approach the fiance company and tell them they are going to make a claim against the dodgey PPI they sold.
Or come to some arrangements to knock some money off the finance deal.
Or is PPI done under a separate entity?

Just a thought