Interest Free or not??

Hectoreeva69

Hi Guys,

Has anybody else heard of this, or know if it's right or not?

I bought a car from Evans Halshaw.

I financed my car, which included the cost of my service plan, at approximately £500.

I've NOW heard that the service plan is normally done through a separate entity from Evans Halshaw (EMAC) and is INTEREST FREE, over approx. 26 months.

They've added it to my finance, which is over 60 months, at 12.9% apr, without offering me the interest free option or even advising me of the normal procedure of it.

I've since found out, this is standard, daily practise at ALL Evans Halshaw dealerships (Now Lithia Group) and has been done on literally thousands of occasions, without giving customers any knowledge of it, in all of their branches, in the last 12 - 18 months, because Managers at the dealerships are targeted on selling these "Service Plans" and are only paid their individual bonus as a result of achieving it.

Surely charging somebody interest, over 60 months, as opposed to interest free, over 26 months, to achieve individual financial gain, can't be legal??

Thoughts?????

flaneurs_lobster

Any chance that you could share the source of your new-found facts?

Hectoreeva69

The source was the Evans Halshaw, Vauxhall branch I bought it from.

Apparently, its common knowledge among the dealerships, but hasn't been shared with the customers.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82049141#Comment_82049141

When you agreed the finance plan, did you sign the agreement knowing you would be financing the full amount including the service plan?

If you agreed to it, its hard to pin the blame on someone else.

These two statements cannot both be true:

"I've NOW heard that the service plan is normally done through a separate entity from Evans Halshaw (EMAC) and is INTEREST FREE, over approx. 26 months."

"I've since found out, this is normal practise at ALL Evans Halshaw dealerships (Now Lithia Group) and has been done on literally thousands of occasions, without giving customers any knowledge of it, in all of their branches, in the last 12 - 18 months"

Aylesbury_Duck

Why can't it be legal?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82049141#Comment_82049141

Just sounds to me like one of the many individual costs that go to make up the "drive-away price" that you are sticking onto a 5 year finance deal.

Hectoreeva69

https://forums.moneysavingexpert.com/discussion/comment/82049168#Comment_82049168

Charging somebody interest, over 60 months, on a product that is never meant to be interest bearing and over 26 months?

What would the FCA call it?

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82049222#Comment_82049222

Where does it say the product is supposed to be interest free over 26 months? You agreed to pay for it on finance over 69 months, as did many others according to your post above.

Hectoreeva69

https://forums.moneysavingexpert.com/discussion/comment/82049163#Comment_82049163

Why can't both statements be true?🤔

1. Since buying my car, I have found out that my service plan should have been offered to me separately, over a far shorter term and on an interest free basis.
2. Since finding this out, and subsequently questioning the legality, validity and/or integrity of it, i've been told every dealership does iit.

Both are true 👍

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82049227#Comment_82049227

Youve said the service plan is normally interest free over 26 months. Youve also said it is now normal practice to add it to the finance plan and charge interest.

Those statements cannot both be true.

Either it is normally interest free, or it's normally added to the finance.

Regardless, you signed up to pay for it on your finance plan.

You keep saying it should have been offered to you interest free, but won't say why you think that. Where do EH state that the plan should be interest free? When did they tell you it should be interest free?

Hectoreeva69

Youve said the service plan is normally interest free over 26 months. Youve also said it is now normal practice to add it to the finance plan and charge interest.

After querying it, I was told i'd have had to have taken it out separately, as a Service Plan.

(I was never told this was an option)

Either it is normally interest free, or it's normally added to the finance.

It is meant to be sold separately, on an interest free basis, over 24-26mths, through EMAC, who are a seperate company.

Evans Halshaw are viewing it as "normal" practise as they are doing it daily, without customers knowledge or consent.

Regardless, you signed up to pay for it on your finance plan.

I was never made aware at the time, that it was available, interest free.

You keep saying it should have been offered to you interest free, but won't say why you think that.

Having spoken to someone who works for the company, they have informed me that these plans are meant to be sold seperately.

Where do EH state that the plan should be interest free?

https://www.evanshalshaw.com/service/service-plan/?srsltid=AfmBOooHeIrwJFcAmxSHyG8G5J8u3nqapmtB3nu8vjmiJWcZDgFnrN_5

When did they tell you it should be interest free?

Please refer to above. 👍