Why won't car dealers accept third party finance?

FindMyWayBack

As the title says, obviously it means they don't get a cut, but is there another reason?
Also does anyone know of any big known dealers who do please?

[Deleted User]

What do you mean by third party finance?

You can take out any finance you want. It will still end up as cash for the retailer.

FindMyWayBack

If you arrange a loan with a finance company and want to use that to pay a car dealer for a car many will not accept it... the term used is 'third party finance'

DrEskimo

Only loans which are secured on the car.

An unsecured loan would be irrelevant. You get the loan paid into your account, and then pay for the car outright.

FindMyWayBack

DrEskimo said:

Only loans which are secured on the car.

An unsecured loan would be irrelevant. You get the loan paid into your account, and then pay for the car outright.

This is correct,  But there are loads of these car finance companies who transfer the money directly to the car dealer, But in practice many of the dealers won't do it and want to arrange the finance themselves.

DrEskimo

FindMyWayBack said:

DrEskimo said:

Only loans which are secured on the car.

An unsecured loan would be irrelevant. You get the loan paid into your account, and then pay for the car outright.

This is correct,  But there are loads of these car finance companies who transfer the money directly to the car dealer, But in practice many of the dealers won't do it and want to arrange the finance themselves.

Why would you prefer a secured loan over a unsecured loan?

What rates have you been offered from these third parties?

FindMyWayBack

DrEskimo said:

FindMyWayBack said:

DrEskimo said:

Only loans which are secured on the car.

An unsecured loan would be irrelevant. You get the loan paid into your account, and then pay for the car outright.

This is correct,  But there are loads of these car finance companies who transfer the money directly to the car dealer, But in practice many of the dealers won't do it and want to arrange the finance themselves.

Why would you prefer a secured loan over a unsecured loan?

What rates have you been offered from these third parties?

I don't prefer it, I am very slightly sub prime so this and slightly higher rates are what is available to me. 
Anyway, nobody has answered my original questions yet, can you?

General_Grant

I think you answered it yourself in your firest post.  Surely it means less income for themselves as no commission from the finance company and they would want to build it into the price they negotiate for the vehicle.

nyermen

There seems to be a definite bonus to the salesperson if they do get finance etc.

Last time I was at a dealer, I could see their interest slump when it was clear that I just wanted to pay cash on top of p/x, rather than PCP etc.

CSL0183

FindMyWayBack said:

As the title says, obviously it means they don't get a cut, but is there another reason?
Also does anyone know of any big known dealers who do please?

I’ve bought plenty of cars from plenty of dealers and not one has had an issue with 3rd party finance. Why would they? 

The money is transferred into their business account. What do they care where the money comes from? I don’t buy the commission thing either as if you are a cash buyer there would be no finance commission, only the cost price of the car. 

If you have perhaps negotiated a 10% discount on the car and then said I’ll arrange my own finance at a cheaper rate then that’s slightly different as some of that 10% discount may have been on the basis of you taking out their more expensive finance package. (Whereas you may have only got a 5% discount for cash price or arranging your own) 

Your statement is incorrect though on the whole. You have visited one dodgy scrupulous car dealer, I have visited perhaps 20 that do accept third party finance. I would say the norm would be with my experience and your experience is highly unusual. 

Car dealers DO accept third party finance. As long as the funds hit their business account then they simply do not care. 

I’ve bought from Audi, BMW, Mercedes, Porsche, Aston Martin, Vauxhall, Citroen and Ford with third party finance. All dealerships will accept cash sales or 3rd party finance sales. 

I’m actually perplexed at this post and you thinking that they won’t. You’re practically saying that unless you finance a car with their finance products you can’t buy them. You really think these companies would turn away millionaires and billionaires because they wanted to buy a car with cash?

JamesPeter

CSL0183 said:

FindMyWayBack said:

As the title says, obviously it means they don't get a cut, but is there another reason?
Also does anyone know of any big known dealers who do please?

I’ve bought plenty of cars from plenty of dealers and not one has had an issue with 3rd party finance. Why would they? 

I’ve bought from Audi, BMW, Mercedes, Porsche, Aston Martin, Vauxhall, Citroen and Ford with third party finance. All dealerships will accept cash sales or 3rd party finance sales.

I’m actually perplexed at this post and you thinking that they won’t. You’re practically saying that unless you finance a car with their finance products you can’t buy them. You really think these companies would turn away millionaires and billionaires because they wanted to buy a car with cash?

With main manufacturer franchised dealerships I agree.

However, some smaller car dealers who operate only in the used car trade (I won't say Arthur Daley, but of that ilk) will either only accept cash/bank transfer or their own finance if it is secured on the vehicle. 

It is their perogative what they accept (bearing in mind something on sale is 'an invitation to treat') just like certain cheaper airlines don't accept Amex etc but the main carriers do.