How To Get Best Price for Toyota CHR

AmIBeingRobbed

I am trying to buy a Toyota CHR for the best price I can. The situation is as follows. The car is advertised as costing about £25,000 on Autotrader. But, if I want to buy the car outright, £2500 is added to the price, making the cost £27,500 which is signifcizantly more than advertised.

The alternative method to purchase the car using Finance for supposedly the full discount.   The dealer has sent me a Finance Quote showing the purchase price of £25,000, the deposit of about 25%, repayments and a final payment of about £13,500.    The dealer then tells me, I can terminate the agreement after three months intimating I would only pay 3 months interest. The dealer will not provide written details to calculate the charges for early termination. If I had to pay the full term charges which I think is quite possible, the cost would be about £29,500.

Any thoughts or advice?

I am sure if went to VW for aTaigo, the situation would be the same.

artyboy

It's quite common for dealers to offer a contribution/discount when taking out finance - that's usually funded by the marque's corporate office or whoever is arranging the finance. The dealer doesn't pay themselves so couldn't care less if you take out finance and then pay it off quickly. They may however be less keen to put it down in writing, as you are finding out!

in any case, we've bought our last 3 cars this way (one Ford, two LRs) - was actually able to pay off the finance after 1 month in every case - so it's nothing to be worried about. I'd just suggest you read the finance agreement to ensure the early repayment clause is in there and you're not stuck with a longer term agreement you don't want.

molerat

But most dealers do not add to the windscreen price for paying cash, they make a dealer contribution for buying with credit.  Find a dealer that is not a con artist may be the best way for getting a best price.  Every time I think that lying car dealers can't get any worse they manage to lower the bar !

Nearlyold

AmIBeingRobbed said:

I am trying to buy a Toyota CHR for the best price I can. The situation is as follows. The car is advertised as costing about £25,000 on Autotrader. But, if I want to buy the car outright, £2500 is added to the price, making the cost £27,500 which is signifcizantly more than advertised.

The alternative method to purchase the car using Finance for supposedly the full discount.   The dealer has sent me a Finance Quote showing the purchase price of £25,000, the deposit of about 25%, repayments and a final payment of about £13,500.    The dealer then tells me, I can terminate the agreement after three months intimating I would only pay 3 months interest. The dealer will not provide written details to calculate the charges for early termination. If I had to pay the full term charges which I think is quite possible, the cost would be about £29,500.

Any thoughts or advice?

I am sure if went to VW for aTaigo, the situation would be the same.

If you ask for an early settlement after 3 months you'll end up paying 5 months interest in total  - the 3 months you've already paid plus a further 2 months under the early settlement regulations which allow the lender to post date the assumed date of settlement used in the rebate calculation by up to 2 months from the date of request for an early settlement figure.

AmIBeingRobbed

artyboy said:

It's quite common for dealers to offer a contribution/discount when taking out finance - that's usually funded by the marque's corporate office or whoever is arranging the finance. The dealer doesn't pay themselves so couldn't care less if you take out finance and then pay it off quickly. They may however be less keen to put it down in writing, as you are finding out!

in any case, we've bought our last 3 cars this way (one Ford, two LRs) - was actually able to pay off the finance after 1 month in every case - so it's nothing to be worried about. I'd just suggest you read the finance agreement to ensure the early repayment clause is in there and you're not stuck with a longer term agreement you don't want.

I know exactly what you mean ... the problem here is the dealer will not provicde a copy of the finance agreement. It is even possible the dealer is under instruction not to show it until the toime it has to be signed.

MrFrugalFever

AmIBeingRobbed said:

artyboy said:

It's quite common for dealers to offer a contribution/discount when taking out finance - that's usually funded by the marque's corporate office or whoever is arranging the finance. The dealer doesn't pay themselves so couldn't care less if you take out finance and then pay it off quickly. They may however be less keen to put it down in writing, as you are finding out!

in any case, we've bought our last 3 cars this way (one Ford, two LRs) - was actually able to pay off the finance after 1 month in every case - so it's nothing to be worried about. I'd just suggest you read the finance agreement to ensure the early repayment clause is in there and you're not stuck with a longer term agreement you don't want.

I know exactly what you mean ... the problem here is the dealer will not provicde a copy of the finance agreement. It is even possible the dealer is under instruction not to show it until the toime it has to be signed.

A finance agreement between you and the dealers lending partner (Toyota FS), which forms a tri-partite agreement, will be subject to you agreeing the terms and having a hard check on your CR’s to gain acceptance. Providing you are accepted for the credit, it is only then that a finance agreement document will be generated specific to you.

The dealer could, if they wish, provide you with parts of a finance document which would include your rights under the consumer credit act 1974, providing they don’t share any customer info (GDPR).

I’ve yet to come across a car finance agreement for a personal individual that doesn’t have the protection of CCA1974 and the relevant settlement rights.

Your dealer will not put anything in writing as they are strongly discouraged to promote such behaviour as mentioned. Toyota will pay the deposit contribution to Toyota FS as a result of a successful payout, the dealer will receive a small commission payment and after your first payment you can settle in full (minus 58 days interest). The dealer will then have their commission recalled and the finance agreement terminated.

Nearlyold

MrFrugalFever said:

AmIBeingRobbed said:

artyboy said:

It's quite common for dealers to offer a contribution/discount when taking out finance - that's usually funded by the marque's corporate office or whoever is arranging the finance. The dealer doesn't pay themselves so couldn't care less if you take out finance and then pay it off quickly. They may however be less keen to put it down in writing, as you are finding out!

in any case, we've bought our last 3 cars this way (one Ford, two LRs) - was actually able to pay off the finance after 1 month in every case - so it's nothing to be worried about. I'd just suggest you read the finance agreement to ensure the early repayment clause is in there and you're not stuck with a longer term agreement you don't want.

I know exactly what you mean ... the problem here is the dealer will not provicde a copy of the finance agreement. It is even possible the dealer is under instruction not to show it until the toime it has to be signed.

A finance agreement between you and the dealers lending partner (Toyota FS), which forms a tri-partite agreement, will be subject to you agreeing the terms and having a hard check on your CR’s to gain acceptance. Providing you are accepted for the credit, it is only then that a finance agreement document will be generated specific to you.

The dealer could, if they wish, provide you with parts of a finance document which would include your rights under the consumer credit act 1974, providing they don’t share any customer info (GDPR).

I’ve yet to come across a car finance agreement for a personal individual that doesn’t have the protection of CCA1974 and the relevant settlement rights.

Your dealer will not put anything in writing as they are strongly discouraged to promote such behaviour as mentioned. Toyota will pay the deposit contribution to Toyota FS as a result of a successful payout, the dealer will receive a small commission payment and after your first payment you can settle in full (minus 58 days interest). The dealer will then have their commission recalled and the finance agreement terminated.

MrFrugalFever is correct the chances of you getting an Unregulated Agreement (ie an agreement with no early settlement rights)  from a mainstream brand like Toyota/Ford/Vauxhall/Citroen is virtually nil.

Even then you would have to specifically request one and evidence your £150K p.a. income or other evidence you were a high net worth individual, or buying as a business, & sign declarations that you wanted an unregulated loan etc. Unregulated car loans are really the preserve of high end prestige brand dealers where customers are prepared to forgo the rights of a regulated agreement for features like a lower/variable rate or balanced payments etc.

Grumpy_chap

molerat said:

But most dealers do not add to the windscreen price for paying cash, they make a dealer contribution for buying with credit.  Find a dealer that is not a con artist may be the best way for getting a best price.  Every time I think that lying car dealers can't get any worse they manage to lower the bar !

Thanks and I agree with you, however I have seen this type of presentation through the online broker sites.  Perhaps it is then less of a surprise that the same marketing makes its way to the listing sites.  Particularly where it is possible to sort by price low to high.  Still don't think this is a good way for a trader to act.