mikes48
Prominent Member
Wondering if anyone has any constructive views or advice on the situation I'm in.
I traded in my wife's car for a newer one from a main dealer a couple of weeks ago, to be paid for by the value of the old car, some cash from me, and HP for the balance, payable over 30 months. I rejected all the usual extras, insurances etc, as I don't consider them to be good value for money, and this was recorded on a check-list of which I was given a copy. This was on the Saturday.
I had to arrange insurance for the new car so I agreed to pop back on the Monday with the insurance certificate and to sign the papers. So I called in on the Monday and the salesman then informed me that the company had worked out an even better deal for me;- they would include SmartGuard Protection and Cosmetic Repair Insurance, worth £399 each, and the monthly repayments would actually come down by £1 a month - which I must say totally flummoxed me.
I reminded him that I didn't want any extras, and asked him to explain just what was going on, as I wasn't comfortable with what seemed a bizarre change. He openly said that he didn't know how they did it, but the firm's Business Manager had gone through the figures and had worked out this great deal which left me in pocket with the added bonus of the two products. I asked to speak to the Business Manager, but he wasn't available and some other guy came out of the office and said it was something to do with the amount you borrow and the rate of interest that you are charged. At no time was I asked (on that occasion) whether I wanted these products nor was I informed that I was being charged for them. I was given to believe that it was some sort of financial wizardry that the Business Manager had come up with.
I wasn't convinced, but given that it was actually cheaper I reluctantly agreed.
It was only went I went through the mass of papers - 34 pages - that I worked out what the dealer had actually done -
I contributed a used car and around £4,000 in cash, with all extras declined, and agreed to borrow the balance on HP, payable in 30 instalments of £403. What the dealer has done is to divert £798 of my cash deposit to buy these unwanted "extras"; they have understated my deposit to the finance company by - you guessed it - £798; and they have increased the amount I have applied to borrow by - right again - £798, taking my loan to £10,798 rather than £10,000. But the monthly instalments have come down to £402.
So by inveigling me into borrowing £798 more than I had expressly agreed to, the dealer has been able to spend £798 of my money of two unwanted products, neatly side-stepping my express refusal to buy. No doubt the extras will boost the dealer's profit/commission or whatever, and he will be feeling very pleased with himself.
As for the monthly payment being marginally lower, despite the HP being £798 higher over the same term, I can only assume that the finance company is taking a hit on the interest rate, whether unwittingly or in collusion with the dealer I don't know.
I've asked for a meeting with the dealer to express my disquiet about their selling methods, and what they propose to do about it. I know I signed the agreement and should probably have stood my ground; and the 14 day cooling-off period has expired, but if they won't play ball one way or another I will need to escalate it - Motor Trade dispute resolution, FCA, their Head Office, the vehicle manufacturer who is providing the finance, Trading Standards , whoever.
Anyone else agree that their selling methods may well be dishonest, deceitful, unethical or whatever? - or, should I just forget it?
I traded in my wife's car for a newer one from a main dealer a couple of weeks ago, to be paid for by the value of the old car, some cash from me, and HP for the balance, payable over 30 months. I rejected all the usual extras, insurances etc, as I don't consider them to be good value for money, and this was recorded on a check-list of which I was given a copy. This was on the Saturday.
I had to arrange insurance for the new car so I agreed to pop back on the Monday with the insurance certificate and to sign the papers. So I called in on the Monday and the salesman then informed me that the company had worked out an even better deal for me;- they would include SmartGuard Protection and Cosmetic Repair Insurance, worth £399 each, and the monthly repayments would actually come down by £1 a month - which I must say totally flummoxed me.
I reminded him that I didn't want any extras, and asked him to explain just what was going on, as I wasn't comfortable with what seemed a bizarre change. He openly said that he didn't know how they did it, but the firm's Business Manager had gone through the figures and had worked out this great deal which left me in pocket with the added bonus of the two products. I asked to speak to the Business Manager, but he wasn't available and some other guy came out of the office and said it was something to do with the amount you borrow and the rate of interest that you are charged. At no time was I asked (on that occasion) whether I wanted these products nor was I informed that I was being charged for them. I was given to believe that it was some sort of financial wizardry that the Business Manager had come up with.
I wasn't convinced, but given that it was actually cheaper I reluctantly agreed.
It was only went I went through the mass of papers - 34 pages - that I worked out what the dealer had actually done -
I contributed a used car and around £4,000 in cash, with all extras declined, and agreed to borrow the balance on HP, payable in 30 instalments of £403. What the dealer has done is to divert £798 of my cash deposit to buy these unwanted "extras"; they have understated my deposit to the finance company by - you guessed it - £798; and they have increased the amount I have applied to borrow by - right again - £798, taking my loan to £10,798 rather than £10,000. But the monthly instalments have come down to £402.
So by inveigling me into borrowing £798 more than I had expressly agreed to, the dealer has been able to spend £798 of my money of two unwanted products, neatly side-stepping my express refusal to buy. No doubt the extras will boost the dealer's profit/commission or whatever, and he will be feeling very pleased with himself.
As for the monthly payment being marginally lower, despite the HP being £798 higher over the same term, I can only assume that the finance company is taking a hit on the interest rate, whether unwittingly or in collusion with the dealer I don't know.
I've asked for a meeting with the dealer to express my disquiet about their selling methods, and what they propose to do about it. I know I signed the agreement and should probably have stood my ground; and the 14 day cooling-off period has expired, but if they won't play ball one way or another I will need to escalate it - Motor Trade dispute resolution, FCA, their Head Office, the vehicle manufacturer who is providing the finance, Trading Standards , whoever.
Anyone else agree that their selling methods may well be dishonest, deceitful, unethical or whatever? - or, should I just forget it?