Won’t sell me car as I don’t want finance

motorguy

alembicbassman wrote: »

Mis-selling of PCP deals is being looked into:

https://www.confused.com/car-finance/finance-options/car-finance-mis-selling-scandal

Oh - and that article was published on 19th July, 2016 so nigh on 3.5 years ago..... and nothing came of it.

JackeeBoy

You can cancel this type of finance within 14 days of taking it out and just have to pay the interest up to the point of cancellation. Buy the car on finance, cancel it and be on your way.

ukjoel

Sales people want an easy straight forward sale and that means online transactions and the chance to hit a target for finance, service plans, gap, and guard.

You phoning one up saying you were a cash buyer and wanted the car at that price effectively is the same as saying 'I am going to lower your conversion percentage this month and cost you £200 out your monthly pay packet for the privilege of selling me a car.'

In his head - thats what you said. His reaction I will spend the two hours talking to other customers that will make me money.....

buglawton

There was a detailed Money Box episode on the radio recently about the imminent law change whereby dealers won't be allowed to earn commission on the interest charged on the finance any more.

This change is being introduced because salespeople being paid in proportion to the cost of the loan interest has become a scandal, causing people to over-borrow at usurious rates. The new FCA ruling will apply to car finance brokers also.

https://www.bbc.co.uk/news/business-50052375

alembicbassman

Amazon really need to start selling cars

motorguy

alembicbassman wrote: »

Amazon really need to start selling cars

You really are behind the times with all your ideas and views arent you?

https://www.amazon.com/Vehicles/b?ie=UTF8&node=10677469011

https://www.psfk.com/2018/09/amazon-digital-showroom-car-sales-hyundai.html

They have looked at doing it here in the UK but not done anything formal yet.

https://www.autocar.co.uk/car-news/new-cars/amazon-sell-cars-europe

Its an awful lot more difficult than people think (as is selling cars in general).

motorguy

buglawton wrote: »

There was a detailed Money Box episode on the radio recently about the imminent law change whereby dealers won't be allowed to earn commission based on the interest charged on the finance any more.

This change is being introduced because salespeople being paid in proportion to the cost of the loan interest has become a scandal, causing people to over-borrow at usurious rates. The new FCA ruling will apply to car finance brokers also.

https://www.bbc.co.uk/news/business-50052375

You missed a word out.

The issue is / was that dealers often get a higher commission for selling a product with a higher interest rate. The FCA change means that from next year it must be a flat rate.

Theres no "scandal". Although that wont stop the ambulance chasing lawyers trying to make it one. Oh, and the tabloids - expect the Daily Mail to have pictures of someone standing beside a car with a sad face after buying finance at 3.9% rather than 2.9% and detail on how much this has impacted their lives.

motorguy

ukjoel wrote: »

Sales people want an easy straight forward sale and that means online transactions and the chance to hit a target for finance, service plans, gap, and guard.

You phoning one up saying you were a cash buyer and wanted the car at that price effectively is the same as saying 'I am going to lower your conversion percentage this month and cost you £200 out your monthly pay packet for the privilege of selling me a car.'

In his head - thats what you said. His reaction I will spend the two hours talking to other customers that will make me money.....

Yup. Pretty much it. And the dealer also will be making less so encourages those behaviours.

I'm buying a car at the minute and will be buying cash. I actually am almost apologetic when i tell them i'm a cash buyer with no trade in...

AdrianC

buglawton wrote: »

...causing people to over-borrow at usurious rates. The new FCA ruling will apply to car finance brokers also.

If there is a cap put on finance rates, then it won't affect whether Joe Average gets offered 2%-3%-4%-5%.

It'll be Gary BadCredit not getting offered any finance at all, rather than the likes of...
https://www.pegasuspersonalfinance.co.uk/car-finance-bad-credit/

Representative example: Borrowing £10,000 over 60 months with a representative APR of 16.8%, an annual interest rate of 7.9% and a deposit of £0.00. The amount payable would be £241.22 per month, with a total cost of credit being £4,473.21 and the total amount payable of £14,473.21. Terms available 12-120 months, 5.9%-49%APR.

You want to get all over-emotive with melodramatic talk about "usury"? It's not the salesman in the dealership bumping a few percentage points on the finance...

motorguy

AdrianC wrote: »

If there is a cap put on finance rates, then it won't affect whether Joe Average gets offered 2%-3%-4%-5%.

It'll be Gary BadCredit not getting offered any finance at all, rather than the likes of...
https://www.pegasuspersonalfinance.co.uk/car-finance-bad-credit/

You want to get all over-emotive with melodramatic talk about "usury"? It's not the salesman in the dealership bumping a few percentage points on the finance...

Its not a cap on the rates being proposed, its a flat rate commission irrespective of the rate thats being proposed.