0% Retail Finance

[nikaiyo2]

I have tried googling but just get loads of rubbish about car loans!

Am I correct in thinking that if a retailer advertises 0% finance that this can NOT be offered in lew of a discount.

So if an high street retailer offers say 15% to purchase, they HAVE to still give 0% credit if the item is advertised with it, is this right?

I know in practice generally 0% is for full ticket prices only, but i am fairly sure that it technically is unlawful to do this.


This does not relate to anything in particular, just I vaguely remember when I used to sell 2nd hand cars we did 0% finance deals as promotions from time to time, and we were instructed to get commitment (and approval) to 0% or not prior to talking about discount/ prices.

Edited by nikaiyo2 on Thursday 26th May 11:25

[PurpleMoonlight]

If they offer 0% finance they won't agree to a cash sale discount.

It doesn't stop them selling at a sale/promotional price with 0% finance. See DFS never ending sales.

[nikaiyo2]

For arguments sake a retailer advertises a product online for let's say £1000, with an option to purchase on 0% finance for 10 payments of £100 a month. You then walk into their high st shop and are offered 20% discount they must also honour the 0% finance offer that is advertised?

[Ozzie Osmond]

If they say it's £1,000 with 0% finance that's absolutely clear. You can have 0% finance at £1,000 but if you want to negotiate a different deal that's up to you. You still need to "qualify" for the finance.

If they, for instance, just said "0% finance on all purchases" then there's more of a point to argue. Even then they're not promising that every customer can have the finance - it's simply available for those who "qualify".

[Ozzie Osmond]

Citizens Advice Bureau says,

"You’re unlikely to get a discount on a 0% deal so it could work out more expensive overall."

https://www.citizensadvice.org.uk/Global/Public/Ed...

[Ozzie Osmond]

... and a relevant case from Trading Standards,

https://www.asa.org.uk/Rulings/Adjudications/2012/...

[Sheepshanks]

nikaiyo2 said:

I know in practice generally 0% is for full ticket prices only,

Not sure that's true - we have a Honda Jazz in the family at the moment that I got a hefty discount on, and it's on a 0% PCP.

Indeed, I didn't want the PCP, but was "bribed" with an extra £500 only available if we took the PCP. It tells you something about how keen the car industry is to get customers onto the PCP treadmill if they're prepared to pay you £500 to get you into it.

I don't know how the cae trade gets away with this - they offer different prices depending on whether you're paying cash or buying on credit and I understood this isn't allowed. They seem to get around it by called the credit discount a "deposit contribution".