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Motor Dealers forcing customers to use their own dealer finance
I own a small independent self funded Finance Company & we are increasingly seeing Motor Dealers refusing to issue an invoice to us as a 3rd party Finance Company, telling our customers that if they want finance they have to use the Dealers own services. In the latest instance (Mini UK) they refused to sell the car to my customer when she wouldn't use them for the finance.
Surely this is an unfair business practice should not be allowed?
They make customers sign FCA forms saying that all your options have been explained to you & that you are getting a finance packing in your best interests etc..., but how can that be the case if you aren't allowed to explore other avenues apart from their own services
Has anyone else experienced this?
Surely this is an unfair business practice should not be allowed?
They make customers sign FCA forms saying that all your options have been explained to you & that you are getting a finance packing in your best interests etc..., but how can that be the case if you aren't allowed to explore other avenues apart from their own services
Has anyone else experienced this?
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Comments
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I suspect this is the dealers protecting themselves becasue they have not done corporate due diligence on the organisation you assert to represent.
is your lending secured against the vehicle ?
why would the dealer be invoicing someone who is not the owner of the vehicle ?1 -
Finance companies for major dealerships are likely to be sanctioned at a Group level. There'll be agreed proceedures in place. Staff trained etc. Also it's the finance company buying the vehicle. Preference maybe to put legal agreements into place with regards to the relationship between the parties.1
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EnPointe said:why would the dealer be invoicing someone who is not the owner of the vehicle ?0
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DullGreyGuy said:EnPointe said:why would the dealer be invoicing someone who is not the owner of the vehicle ?0
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EnPointe said:DullGreyGuy said:EnPointe said:why would the dealer be invoicing someone who is not the owner of the vehicle ?0
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I've just walked away from a deal for exactly this reason. In the interest of clarity, the dealer claimed they weren't explicitly forcing me to use their financial services, however they refused to accept an invoice request from a 3rd party credit broker, thus blocking what was otherwise a completed deal.
Their official line was that they don't force me to use their credit, but don't talk to 3rd party credit broker... I am apparently able to arrange my own car finance, but as many will know, the amount of asset finance available direct to consumers is extremely finite. I was told this was a company policy across the unnamed group of dealers, and this decision "was made with the benefit of the customer in mind'. I sense herculean quantity of Bravo-Sierra.
I won't name this dealer here, as I can't offer them chance of reply, but they are a group selling BMW/Mini/Jaguar/Land Rover vehicles in the North West including dealerships in Liverpool and Manchester.
The car I was going to buy is now back on sale... For £500 less than I'd previously offered to pay for it. I'll leave you to draw your own conclusions on this business logic.0 -
DeirdreBarlowIsHot said:however they refused to accept an invoice request from a 3rd party credit broker,0
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