Need advice re misrepresentation of car finance

GrannyC185

Hi there

Over the weekend I put down a deposit for a car with a car dealer - the agreement was that they would match the bank loan rate of 5.9% APR. When I come today to sign the credit agreement the APR is in fact 12.7% - apparently the 'flat rate' was 5.9%.......

I have refused to sign, the difficulty I have is that the application is showing up on my credit report and now the bank will also only offer me 12.8%.

I have a credit score of 999 according to Experian so the only thing I can think is stopping the bank giving me a lower rate is the credit application which I haven't signed. What do I do now? I have done another online application but I don't want to make the situation worse?

Can anybody offer me any advice? I feel completely hoodwinked



Claire

[Deleted User]

The 999 score is irrelevant. Chances are the bank would not have given you the headline rate either.

May be worth one more application if you have two offers on the table. But no more searches for a while after that.

GrannyC185

Thanks. I'll wait and see what they come up with then.

Just hate being so naive........ so you don't think the one application would have made a difference? Maybe I'm too good and not profitable enough.....:o

Claire

SeanG79

GrannyC185 wrote: »

Hi there

Over the weekend I put down a deposit for a car with a car dealer - the agreement was that they would match the bank loan rate of 5.9% APR. When I come today to sign the credit agreement the APR is in fact 12.7% - apparently the 'flat rate' was 5.9%.......

I have refused to sign, the difficulty I have is that the application is showing up on my credit report and now the bank will also only offer me 12.8%.

I have a credit score of 999 according to Experian so the only thing I can think is stopping the bank giving me a lower rate is the credit application which I haven't signed. What do I do now? I have done another online application but I don't want to make the situation worse?

Can anybody offer me any advice? I feel completely hoodwinked



Claire

The bank loan rate quoted is not necessarily the rate you will be offered.

The addition of 1 search is unlikely to have that great an impact on the rate offered.

It is my experience that a 2 or 3 searches have a negligible impact (previously had more impact) on the rate offered as people are shopping around for the cheapest loan.

Recently my partner was looking for car finance and applied for personal loans with 4 banks (she wanted 2 x £7.5k loans to get "lowest" rate), the 4th bank was the cheapest and the 1st was second cheapest...