Contacted regarding missold PCP

Herzlos

The advertised rate only needs to be offered to 51% of applicants, and not everyone has a good enough credit rating or deposit to get a "good" rate.

I've always bought used cars and I'm pretty sure the finance for the last few have been offered at 8.9% APR though hidden via a flat rate of about 4%.


Not that it'd be missold unless there was deception or coersion involved. Like the PPI cases where people were told they needed to take out PPI to get the loan, or were offered insurance that wouldn't provide them any cover.

iwb100

Herzlos said:

The advertised rate only needs to be offered to 51% of applicants, and not everyone has a good enough credit rating or deposit to get a "good" rate.

I've always bought used cars and I'm pretty sure the finance for the last few have been offered at 8.9% APR though hidden via a flat rate of about 4%.


Not that it'd be missold unless there was deception or coersion involved. Like the PPI cases where people were told they needed to take out PPI to get the loan, or were offered insurance that wouldn't provide them any cover.

But we are talking about new cars and manufacturer deals. I’ve never heard of the advertised rate altering. Not once. Because it’s a manufacturer sponsored deal. 

motorguy

iwb100 said:

Reading through this thread can someone explain how people are buying new cars with 9% APR? I’ve never seen a manufacturer with such a high rate for a new car. And I thought for new manufacturers offered a fixed rate that they guarantee by simply setting the lending criteria and deciding the percentage of deals they will take the hit on?

I didn’t think you could change the APR either way. No dealer I’ve ever dealt with has ever said ‘sorry you can’t have advertised APR but I can sell you at a higher rate’. Never. For second hand. Sure. It’s why second hand pcp is a mugs game. But for new they’ve always made clear rates are fixed. Sometimes a manufacturer will offer a low rate and a higher one but with deposits contribution and it’s up to you to work out which will be best for you with your deposit size etc but that’s still two fixed offers. 

So what am I missing? 

9% APR does seem very high for new car finance.

I do know that used car PCP can easily hit that, and well beond.

And agreed - when its manufacturer offered finance, you either get accepted, or you dont.  The dealer may well be able to find you another finance co offereing a different rate though.

motorguy

Herzlos said:

The advertised rate only needs to be offered to 51% of applicants, and not everyone has a good enough credit rating or deposit to get a "good" rate.

I've always bought used cars and I'm pretty sure the finance for the last few have been offered at 8.9% APR though hidden via a flat rate of about 4%.


Not that it'd be missold unless there was deception or coersion involved. Like the PPI cases where people were told they needed to take out PPI to get the loan, or were offered insurance that wouldn't provide them any cover.

As per iwb's comments - with manufacturer offered finance you either get accepted or you dont.  There is no sliding scale of rates.

born_again

iwb100 said:

But we are talking about new cars and manufacturer deals. I’ve never heard of the advertised rate altering. Not once. Because it’s a manufacturer sponsored deal. 

You are right. Manufacture credit will just decline the offer. But you may than find that a dealer may try and source a deal for the customer at a interest rate that is higher to cover the greater risk, and customer may not be aware of what they have done. Or they know, but conveniently forget when these co's contact them.
And it is usually these people that will be conned into the claims made by these companies. 

Grumpy_chap

motorguy said:

9% APR does seem very high for new car finance.

AUDI were around that level at the tail end of 2021

Herzlos

motorguy said:

Herzlos said:

The advertised rate only needs to be offered to 51% of applicants, and not everyone has a good enough credit rating or deposit to get a "good" rate.

I've always bought used cars and I'm pretty sure the finance for the last few have been offered at 8.9% APR though hidden via a flat rate of about 4%.


Not that it'd be missold unless there was deception or coersion involved. Like the PPI cases where people were told they needed to take out PPI to get the loan, or were offered insurance that wouldn't provide them any cover.

As per iwb's comments - with manufacturer offered finance you either get accepted or you dont.  There is no sliding scale of rates.

I don't imagine many consumers really care where the credit comes from. If they want the car and the manufacturer declines to give them the advertised deal, I assume the dealer will try and source an alternative deal and present that. The buyer then either agrees and pays, or declines and either leaves the sale or sources alternative funding.

iwb100

born_again said:

iwb100 said:

But we are talking about new cars and manufacturer deals. I’ve never heard of the advertised rate altering. Not once. Because it’s a manufacturer sponsored deal. 

You are right. Manufacture credit will just decline the offer. But you may than find that a dealer may try and source a deal for the customer at a interest rate that is higher to cover the greater risk, and customer may not be aware of what they have done. Or they know, but conveniently forget when these co's contact them.
And it is usually these people that will be conned into the claims made by these companies. 

Thanks that makes sense. However If someone is declined for the manufacturer finance partner deal then surely a dealer finding alternative options isn’t miselling? Id understand that if they were offering a higher than the advertised rate via the manufacturers finance partner and doing so without informing the customer of their commission to do so. But if the customer is declined and dealer says ‘don’t worry we can find an alternative’ is that misselling?

Jenni_D

iwb100 said:

born_again said:

iwb100 said:

But we are talking about new cars and manufacturer deals. I’ve never heard of the advertised rate altering. Not once. Because it’s a manufacturer sponsored deal. 

You are right. Manufacture credit will just decline the offer. But you may than find that a dealer may try and source a deal for the customer at a interest rate that is higher to cover the greater risk, and customer may not be aware of what they have done. Or they know, but conveniently forget when these co's contact them.
And it is usually these people that will be conned into the claims made by these companies. 

Thanks that makes sense. However If someone is declined for the manufacturer finance partner deal then surely a dealer finding alternative options isn’t miselling? Id understand that if they were offering a higher than the advertised rate via the manufacturers finance partner and doing so without informing the customer of their commission to do so. But if the customer is declined and dealer says ‘don’t worry we can find an alternative’ is that misselling?

I guess it depends on whether the bold bit was clearly advised to the consumer.

Daniel2curtis

onlineanonymous said:

Hi,


I'm an insider at one of these major firms offering No Win No Fee PCP Claims. The main issue with these claims is that it's so difficult to find any unbiased information - they just seem to be shrouded in mystery. Extensive details can be found on: <u>www.mypcps.com</u> but I'm also happy to answer any questions here.

Although (most of) these companies are regulated by the SRA, there's definitely a sketchy feel with the processes and claim amounts estimated. Within the industry, most of the advisors themselves will most likely not fully understand the processes and legislations which can cause major issues with communications. 

OP and 'Daniel2Curtis, your claim companies won't just take your money and run. But it's extremely likely what you do receive at the end will be much lower than what you've been told.


ONAN

To be honest at this point I'm not really expecting anything. I'm just interested in seeing it through to the end because like you say its a mystery and the claims company don't really seem to have much hope themselves in winning. 
It's like they are throwing damp paper at a wall and seeing if any sticks. 

Any extra information would be greatly appreciated though since they don't provide me with much communication. 

Dan