chippyteaforme
Well-known Member
Hi all,
So I thought I'd give a dealer (no names) a call about a car. I was looking, but not really looking to make a purchase immediately. After all at this point I'd not even seen the car (thanks to the current situation) but it's nearly new and under warranty, and have used the dealer twice before with no real issues.
The salesperson offered me a deal that seemed very good on a car that matched what I was after, and made a suggestion that seemed to good to be true - basically they'd give me £10k cash back within a couple of days (my car is worth about £12,500 part-ex, but they've offered £13,500), and then 49 months at £220p/m. Their car is very competitively priced. It's a big name so not expecting anything shady other than the usual ex-lease type thing.
I've now discovered that the deal is probably at 9.9% APR, which is a bit daft as I was quite willing to pay cash, and have access to much cheaper credit (2.9% APR or better).
Interest, either total cost of finance, or rate, wasn't discussed at the time, in fact no interest was. I know, I should have asked, so I'm an idiot (or gullible), but surely they have to tell you what the APR is?
I've used the Black Horse calculator (that is the finance provider) and 9.9% seems to match up.
I have no paperwork or anything, I can only imagine that goes direct to the dealer?
Now... I've paid a reservation on the car (on card), only a small figure and refundable if I don't go ahead. Due to finalise the deal next week.
Should I :
A) Cancel the deal entirely before collection,
Or
B) Take them up on it (assuming their car is good upon inspection) and cancel the finance within the 'cooling off' period? After all, they seem to have over-valued mine and theirs is very competitive.
P.S. I did email the salesperson asking about interest but got no reply - I'm thinking they are probably commission based and don't want to scare me off the finance.
So I thought I'd give a dealer (no names) a call about a car. I was looking, but not really looking to make a purchase immediately. After all at this point I'd not even seen the car (thanks to the current situation) but it's nearly new and under warranty, and have used the dealer twice before with no real issues.
The salesperson offered me a deal that seemed very good on a car that matched what I was after, and made a suggestion that seemed to good to be true - basically they'd give me £10k cash back within a couple of days (my car is worth about £12,500 part-ex, but they've offered £13,500), and then 49 months at £220p/m. Their car is very competitively priced. It's a big name so not expecting anything shady other than the usual ex-lease type thing.
I've now discovered that the deal is probably at 9.9% APR, which is a bit daft as I was quite willing to pay cash, and have access to much cheaper credit (2.9% APR or better).
Interest, either total cost of finance, or rate, wasn't discussed at the time, in fact no interest was. I know, I should have asked, so I'm an idiot (or gullible), but surely they have to tell you what the APR is?
I've used the Black Horse calculator (that is the finance provider) and 9.9% seems to match up.
I have no paperwork or anything, I can only imagine that goes direct to the dealer?
Now... I've paid a reservation on the car (on card), only a small figure and refundable if I don't go ahead. Due to finalise the deal next week.
Should I :
A) Cancel the deal entirely before collection,
Or
B) Take them up on it (assuming their car is good upon inspection) and cancel the finance within the 'cooling off' period? After all, they seem to have over-valued mine and theirs is very competitive.
P.S. I did email the salesperson asking about interest but got no reply - I'm thinking they are probably commission based and don't want to scare me off the finance.
