Car finance from main dealer 7 November 2022 at 10:35AM in Motoring 4 replies 191 views

drbukar

Hello all, 

Hoping someone can help as I have never bought a car on finance before.  When you purchase a car from a main dealer e.g Toyota.  Is the finance agreement with Toyota finance or a third party finance company like zenauto etc  

I am trying to understand who gets the actual loan for the pcp..is it from Toyota to the dealer ? With no third party

Thanks and sorry for complicated question 

DullGreyGuy

It may vary by dealership... some may have more than one provider to deal with different appetites for sub prime etc. 

Are you trying to understand the cashflow? Is it important to you if its paid to the dealership or directly to the UK importer?

drbukar

Thank you so much for responding. I am curious to know who gets the cash flow...because if the main dealer like Toyota ( which has its own finance) who gets the actual loan.....

TadleyBaggie

Dealerships are often just branded franchises, apart from setting up the finance they will have little else to do with it after the sale has completed. Even manufacturers branded finance will often be with a separate company. 

So the finance company will pay the dealer the amount financed on sale, and then you pay the finance company until the debt is cleared.

DullGreyGuy

drbukar said:

Thank you so much for responding. I am curious to know who gets the cash flow...because if the main dealer like Toyota ( which has its own finance) who gets the actual loan.....

They will be separate legal entities and so its possible the cashflow is notional rather than real it will have to flow through the books even if all entities involved are part of the toyota group... that said, our local Toyota garages are not Toyota owned and so would most likely be real cashflow even if from Toyota finance.