Car finance - hidden commission payments
Discussion
Just been discussing this at work today, seems a few of the lads have had positive claims on used vehicles bought through finance through various finance companies, none what so ever with new vehicles via VWFS.
I had my 2 new vehicles from VWFS confirmed as no commission.
Only other vehicle is an ex-demo I30N via black horse on a "used" finance agreement. They've sent me emails every month saying they're busy please wait, yet I see countless adverts everywhere saying they're liable.
As everyone is, waiting until September to see the outcome.
I had my 2 new vehicles from VWFS confirmed as no commission.
Only other vehicle is an ex-demo I30N via black horse on a "used" finance agreement. They've sent me emails every month saying they're busy please wait, yet I see countless adverts everywhere saying they're liable.
As everyone is, waiting until September to see the outcome.
Porsche Financial Services:-
We’re writing to let you know that based on our review of your complaint, we believe a Discretionary Commission Arrangement may have applied to your agreement and as such the pause applies to your complaint. We are therefore not in a position to issue a final response to your complaint at this time.
We’re writing to let you know that based on our review of your complaint, we believe a Discretionary Commission Arrangement may have applied to your agreement and as such the pause applies to your complaint. We are therefore not in a position to issue a final response to your complaint at this time.
Had a reply from Ford, says they cant tell if my finance had a DCA, but they need more time. Someone from work bought a car the same day as me using the same finance scheme, her APR was 0.4 higher than mine, so I reckon they were amending things, they did say I can complain to the FCA already and have given me the details, but im hoping Martin Lewis is right and am holding on for now.
Northridge/BMW have said they need more time to get the documents - which I attached a scanned copy.
Northridge/BMW have said they need more time to get the documents - which I attached a scanned copy.
OddCat said:
Article in today's Telegraph re the rise of 'class actions' in the UK:
And this comment:
Just sayin'.....
I was free to walk away, however I needed a car, I needed finance, I was told that was the rate take it or leave it, what I wasn't told was that rate was set by someone who got extra commission for bumping my rate up.And this comment:
Just sayin'.....
Just sayin'......
Wont someone think of the poor finance companies !!
"Volkswagen Financial Services have concluded the 2023 financial year with another good result. The operating profit of EUR 3.25 billion is the outcome of a normalization of business performance, without the special effects of the past two years"
They are drowning apparently.
"Volkswagen Financial Services have concluded the 2023 financial year with another good result. The operating profit of EUR 3.25 billion is the outcome of a normalization of business performance, without the special effects of the past two years"
They are drowning apparently.
geeks said:
I was free to walk away, however I needed a car, I needed finance, I was told that was the rate take it or leave it, what I wasn't told was that rate was set by someone who got extra commission for bumping my rate up.
Just sayin'......
And that's the nub. The premium wasn't customer risk related by any credible metric but third party salesman added based on what they could get away with. Just sayin'......
The lender quoted a fair rate for the risk they were taking and then allowed the agent sitting between them and the client to add on whatever they liked for themselves.
What you then always end up with is some being honest and fair and others gauging mugs, the latter being quite easy with cars as many customers walk in thinking 24% credit card funding is a sane figure to work back from as opposed to others who work forward from 2% mortgage rates or 3% unsecured loan rates.
It's exactly why people who sell cars should sell cars and people who sell debt should sell debt and never the Twain should ever be allowed to meet.
DonkeyApple said:
The lender quoted a fair rate for the risk they were taking and then allowed the agent sitting between them and the client to add on whatever they liked for themselves
Disgusting. A retailer setting their own margin.To be fair, I do think that making people signing these agreements while having a gun held to their heads was out of order.
pavarotti1980 said:
OddCat said:
Disgusting. A retailer setting their own margin Salesman deciding his own levels of commission
To be fair, I do think that making people signing these agreements while having a gun held to their heads was out of order.
FTFYTo be fair, I do think that making people signing these agreements while having a gun held to their heads was out of order.
How much commission do you think a dealership should earn ?
OddCat said:
Okay, so who then IS supposed to decide the level of the dealerships finance commission ?
How much commission do you think a dealership should earn ?
With mortgages it’s set by the lender isn’t it? It’s been a little while since I used a financial advisor but I do remember their commission being clearly defined. It certainly shouldn’t be at the salesman’s discretion How much commission do you think a dealership should earn ?
OddCat said:
Okay, so who then IS supposed to decide the level of the dealerships finance commission ?
How much commission do you think a dealership should earn ?
I have no idea but for the sales staff to amend the APR to increase the commission they receive from the finance company is not the correct way. How much commission do you think a dealership should earn ?
I don't care how much they earn as long as the whole process is transparent and the customer is aware of whether they have received the best rate from the finance company and not have it inflated without their knowledge so Jack can buy a new shiny suit
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