Missold car finance

tassles

Can someone tell me how I find out if I was missold car finance please?\
I bought a car on the pcp fro Honda in 2014.  I have checked my paperwork but it doesn't tell me anything.
Thanks in advance 

la531983

Why do you think you were missold it?

tassles

la531983 
I don't know if I was and had never thought about it until this week when it was in the news.  

CliveOfIndia

tassles said:

la531983 
I don't know if I was and had never thought about it until this week when it was in the news.  

Well a good place to start is to check the paperwork carefully, make sure that it clearly shows all the financial figures - deposit, monthly payments, balloon payment, what commission the salesman would earn.  If all this is clearly stated then you're unlikely to have any basis for a claim.

The nub of the issue is where the salesman's commission was either not clearly explained, or else was inflated and paid for via an increased APR.

Nasqueron

CliveOfIndia said:

tassles said:

la531983 
I don't know if I was and had never thought about it until this week when it was in the news.  

Well a good place to start is to check the paperwork carefully, make sure that it clearly shows all the financial figures - deposit, monthly payments, balloon payment, what commission the salesman would earn.  If all this is clearly stated then you're unlikely to have any basis for a claim.

The nub of the issue is where the salesman's commission was either not clearly explained, or else was inflated and paid for via an increased APR.

The commission does not have to be clearly explained, or even disclosed. The issue here is the variable rate interest finance where it is suspected a few sales were deliberately putting the buyer on a higher APR to get more commission. If the seller did not use this model, there is no complaint regardless of whether commission was displayed or not

Veteransaver

What APR is the finance at? That would be a good starting point. Typical rates were around 4-7% on brand new cars back then so if it was up near 10% or more it might indicate something a bit fishy. Was it a brand new car? Can you remember or do you have any of the advertising for the deal?
It's wasn't uncommon to advertise very low rates then when you sign the deal the rates mysteriously increased to give the salesperson a chunky commission, that is the nub of this current misselling scandal.
I had a maindealer try this on me back in about 2016, they had advertised the car with a deposit contribution if you took the PCP at 4.9%, when I went to sign the deal it had jumped up to 9.9% and they'd tried to add in Gap, wheel cover and Scotchgard for another £1k so I walked out.

Nasqueron

Veteransaver said:

What APR is the finance at? That would be a good starting point. Typical rates were around 4-7% on brand new cars back then so if it was up near 10% or more it might indicate something a bit fishy. Was it a brand new car? Can you remember or do you have any of the advertising for the deal?
It's wasn't uncommon to advertise very low rates then when you sign the deal the rates mysteriously increased to give the salesperson a chunky commission, that is the nub of this current misselling scandal.
I had a maindealer try this on me back in about 2016, they had advertised the car with a deposit contribution if you took the PCP at 4.9%, when I went to sign the deal it had jumped up to 9.9% and they'd tried to add in Gap, wheel cover and Scotchgard for another £1k so I walked out.

The APR the OP got is not an indication of anything fishy. Finance at an advertised rate only has to be given to 51% of successful applicants so if they advertised 4.9% but then did a credit check on you and the lender said you didn't qualify, and gave 9.9%, that isn't miss-selling. If the dealership used the variable commission model, there might be an issue, if they didn't, high APR means nothing

MrFrugalFever

Nasqueron said:

Veteransaver said:

What APR is the finance at? That would be a good starting point. Typical rates were around 4-7% on brand new cars back then so if it was up near 10% or more it might indicate something a bit fishy. Was it a brand new car? Can you remember or do you have any of the advertising for the deal?
It's wasn't uncommon to advertise very low rates then when you sign the deal the rates mysteriously increased to give the salesperson a chunky commission, that is the nub of this current misselling scandal.
I had a maindealer try this on me back in about 2016, they had advertised the car with a deposit contribution if you took the PCP at 4.9%, when I went to sign the deal it had jumped up to 9.9% and they'd tried to add in Gap, wheel cover and Scotchgard for another £1k so I walked out.

The APR the OP got is not an indication of anything fishy. Finance at an advertised rate only has to be given to 51% of successful applicants so if they advertised 4.9% but then did a credit check on you and the lender said you didn't qualify, and gave 9.9%, that isn't miss-selling. If the dealership used the variable commission model, there might be an issue, if they didn't, high APR means nothing

Secured loan for car finance will either be accept or decline on an advertised rate and therefore the 51% thing is not really relevant here. If the applicant was declined on the first string lender (assuming it was a new car purchase) then the applicant may have been given the option by the dealership to utilise a second string lender but would incur higher APR (risk increase) and loss of deposit contribution. They shouldn't be proposing a customer to alternative lenders without their consent.

Prior to January 2021 there was no regulation forcing dealerships to disclose commission but it was commonplace for a finance agreement to alert the consumer that commission may be paid for the dealership introducing the customer to the lending partner.

Commission paid by lenders for new cars is peanuts. Commission paid to dealerships for used cars is a different story and that is where the FCA is focusing currently.

If the OP had purchased a used vehicle on finance through Honda Dealership and hadn't done their respective research that is down to the them. You'll have a very hard time proving you were not given an appropriate rate for your (then) credit worthiness so good luck.

Nasqueron

MrFrugalFever said:

Nasqueron said:

Veteransaver said:

What APR is the finance at? That would be a good starting point. Typical rates were around 4-7% on brand new cars back then so if it was up near 10% or more it might indicate something a bit fishy. Was it a brand new car? Can you remember or do you have any of the advertising for the deal?
It's wasn't uncommon to advertise very low rates then when you sign the deal the rates mysteriously increased to give the salesperson a chunky commission, that is the nub of this current misselling scandal.
I had a maindealer try this on me back in about 2016, they had advertised the car with a deposit contribution if you took the PCP at 4.9%, when I went to sign the deal it had jumped up to 9.9% and they'd tried to add in Gap, wheel cover and Scotchgard for another £1k so I walked out.

The APR the OP got is not an indication of anything fishy. Finance at an advertised rate only has to be given to 51% of successful applicants so if they advertised 4.9% but then did a credit check on you and the lender said you didn't qualify, and gave 9.9%, that isn't miss-selling. If the dealership used the variable commission model, there might be an issue, if they didn't, high APR means nothing

Secured loan for car finance will either be accept or decline on an advertised rate and therefore the 51% thing is not really relevant here. If the applicant was declined on the first string lender (assuming it was a new car purchase) then the applicant may have been given the option by the dealership to utilise a second string lender but would incur higher APR (risk increase) and loss of deposit contribution. They shouldn't be proposing a customer to alternative lenders without their consent.

If it is the case, fair enough but the site I looked at said the 51% also applied to car finance

sheeps68

I've just put in my request for information using the Tool. All very easy except remembering a couple of facts eg a old car registration number. Just wanted to add that RCI finance has become Mobilize

chasing_rainbows_2

Has anyone received any sort or acknowlegement or response from customer.relations@mobilize-fs.com?