Car Finance - interest rate change

TL020900

Hi,

I wondered whether anyone had come across this issue before.

I ordered a new Audi back in April of this year.  The car has finally arrived at the dealership and is ready for collection....great!  However I have been quoted an interest rate which is 2% higher than back in April on the PCP finance.  This is purely due to Audi Finance increasing their rates (the representative APR has increased) and nothing to do with my own circumstances.  In addition they had a promotion back in April which gave three free repayments which they now say they won't honour.

Does anyone know if the dealership should have secured the finance back in April or whether it's normal that they only finalise the rates/offers....etc. when you come to collect the car?

Thanks in advance for any help.

motorguy

TL020900 said:

Hi,

I wondered whether anyone had come across this issue before.

I ordered a new Audi back in April of this year.  The car has finally arrived at the dealership and is ready for collection....great!  However I have been quoted an interest rate which is 2% higher than back in April on the PCP finance.  This is purely due to Audi Finance increasing their rates (the representative APR has increased) and nothing to do with my own circumstances.  In addition they had a promotion back in April which gave three free repayments which they now say they won't honour.

Does anyone know if the dealership should have secured the finance back in April or whether it's normal that they only finalise the rates/offers....etc. when you come to collect the car?

Thanks in advance for any help.

Yes, from memory manufacturers offers will be run usually quarterly so the offer you are quoted may not be the offer you can get when the car arrives, particularly with a long delivery time.  

Unless there was an option to lock in the finance deal at the time (And it sounds like there wasnt) then your only choices are accept the finance deal they're now offering, see if you can get a better deal elsewhere with a cheap loan, cancel the deal (which might incur a lost deposit, but i doubt it).

You could ask the dealer to raise it with the finance company but i doubt they will move.  They might though.

I had this before some years ago when looking at a Mercedes.  The only real way for me to secure the finance deal before it ended was to order a car already built, but the specs didnt suit me, so i walked away as there was no guarantees the next deal would have been as good as the one they had on at that time.

TL020900

Its annoying but the original delivery date was June! I suspect they have you over a barrel with the shortage of cars at the moment.

Guess you live and learn......

Thanks for taking the time to respond.

motorguy

TL020900 said:

Its annoying but the original delivery date was June! I suspect they have you over a barrel with the shortage of cars at the moment.

Guess you live and learn......

Thanks for taking the time to respond.

No worries.  Yes, very frustrating.  

I suspect also the dealer knows they can resell the car you've ordered if needs be, and probably with less discount, so they're not feeling a big urge to help.

Is it worth maybe poking them to talk to the manufacturer's finance company here RE: some sort of exception or assistance?  As you say, not your fault the car was delayed.

Or maybe ring the manufacturers UK customer service?

Maybe nothing will come of that but you might get "something" out of it.

Jenni_D

Quite ... Don't ask, Don't Get.  

Grumpy_chap

TL020900 said:

Hi,

I wondered whether anyone had come across this issue before.

I ordered a new Audi back in April of this year.  The car has finally arrived at the dealership and is ready for collection....great!  However I have been quoted an interest rate which is 2% higher than back in April on the PCP finance.  This is purely due to Audi Finance increasing their rates (the representative APR has increased) and nothing to do with my own circumstances.  In addition they had a promotion back in April which gave three free repayments which they now say they won't honour.

Does anyone know if the dealership should have secured the finance back in April or whether it's normal that they only finalise the rates/offers....etc. when you come to collect the car?

Thanks in advance for any help.

What exactly does the paperwork say that you signed back in April?

Delay in the lead-time from June to December is likely not Audi's fault, but nor should the purchaser lose out either (apply a "reasonable" lay-persons interpretation, not necessarily legal position).
Certainly, the three free payments (if that's what they were) would amount to a discount of around £1k on the total price of the car.  Was it three free payments, or three-months payment-free (i.e. deferred?)

Regarding the interest rate change, does the OP need the finance, or were they only taking it to secure incentives and plan to settle swiftly?  In the former case, the extra 2% is a high increase in total cost, in the latter case the extra interest is largely immaterial.
The OP could work out the cost of the extra payments over the finance term and ask for that as a discount (plus the £1k for the three free payments).
You may not get all of that, but you can't lose by asking.