Motorists overcharged by £1,000+ for car finance loans - MSE News

edited 30 November -1 at 1:00AM in Motoring
8 replies 1.6K views
Former_MSE_NaomiFormer_MSE_Naomi Former MSE
519 Posts
Second Anniversary First Post I've been Money Tipped! Newshound!
MSE Staff
edited 30 November -1 at 1:00AM in Motoring
Some car finance customers are paying more than £1,000 extra in interest charges due to certain commission incentives, the Financial Conduct Authority has said...
Read the full story:
'Motorists overcharged by £1,000+ for car finance loans'
OfficialStamp.gif
Click reply below to discuss. If you haven’t already, join the forum to reply.

Replies

  • moleratmolerat Forumite
    25.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Looks like they may have found something to fill the gap when the PPI gravy train ends.
  • SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    ✭✭✭✭✭✭
    They were presented documents showing how much the loan was for, the rate and what the repayments were so the fact it includes commission is neither here nor there in my view. Does anyone truly believe that they push finance because they're not getting a kickback from it? I thought it was widely known they get commission from the finance companies.

    As usual it'll be everyone else who gets to pay the price for the morons like it has been with switching energy suppliers. Government brings out a solution, everyone with a brain who was able to think for themselves and shopped around ends up losing £100s because of the brain dead morons who couldn't be bothered.
  • eschatoneschaton Forumite
    2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    MSE_Naomi wrote: »
    Some car finance customers are paying more than £1,000 extra in interest charges due to certain commission incentives, the Financial Conduct Authority has said...
    Read the full story:
    'Motorists overcharged by £1,000+ for car finance loans'
    OfficialStamp.gif
    Click reply below to discuss. If you haven’t already, join the forum to reply.



    Can’t believe that you are calling this news.

    Anyone that has overpaid are people that probably have a habit of being fleeced.
  • SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    ✭✭✭✭✭✭
    eschaton wrote: »
    Can’t believe that you are calling this news.

    Anyone that has overpaid are people that probably have a habit of being fleeced.

    Indeed. They'll be fully paid up members of the "on a standard energy tariff with quarterly billing, automatically renew all insurances, savings in a bank account with 0.1% interest rate" brigade.
  • eschatoneschaton Forumite
    2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    Tarambor wrote: »
    Indeed. They'll be fully paid up members of the "on a standard energy tariff with quarterly billing, automatically renew all insurances, savings in a bank account with 0.1% interest rate" brigade.

    You were spot on there until you mentioned savings :D
  • michaelsmichaels Forumite
    25.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    I just hope their is a claim in it for us - only ever bought a new car once, used the finance as it was the easiest way to get 10k off list price and the interest rate was 0% so no point in even paying it off early. Then at the end of the term pcp they let me buy the car for 3.5k below the GFV (again at 0% over 4 years) which saved me paying 1k for being way over the mileage and now two years later it is worth more than I bought it for at the end of the PCP.

    So I think I was robbed blind on the finance and need compensation isn't it.
    I think....
  • edited 6 March 2019 at 11:17AM
    tgroom57tgroom57 Forumite
    1.4K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭
    edited 6 March 2019 at 11:17AM
    I'm going to collect up the paperwork for the 2 (used) cars my darling daughters bought from Trade Center Wales. They wouldn't let me go in with them when the salesman set up the finance, and I could've cried when I found out they were paying double figure interest rates over 4 or 5 years.

    Found some of it :

    Interest rate 27.8% (APR 30.8%);

    duration 4 years;

    Hire Purchase.
  • eschatoneschaton Forumite
    2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    tgroom57 wrote: »
    I'm going to collect up the paperwork for the 2 (used) cars my darling daughters bought from Trade Center Wales. They wouldn't let me go in with them when the salesman set up the finance, and I could've cried when I found out they were paying double figure interest rates over 4 or 5 years.

    Found some of it :

    Interest rate 27.8% (APR 30.8%);

    duration 4 years;

    Hire Purchase.


    I hope that they were embarrassed.

    When I bought my first new car when I was 19yrs, the first thing I looked at was the interest rate.
This discussion has been closed.
Latest News and Guides