BMW dealer finance deposit contribution ?
Discussion
Merc do the same.
I always thought it was just a sales gimmick. In reality the car is discounted anyway and they give you a contribution when in fact it wasn't at the initial pre-contribution price anyway!
I'm pretty sure MBUK decide what cars sell for what price not an individual, franchised, dealer. They are the ones "contributing"ion the form of discounts for the dealer to use.
I'm guessing of course but it's a normal sales trick in any market.
I always thought it was just a sales gimmick. In reality the car is discounted anyway and they give you a contribution when in fact it wasn't at the initial pre-contribution price anyway!
I'm pretty sure MBUK decide what cars sell for what price not an individual, franchised, dealer. They are the ones "contributing"ion the form of discounts for the dealer to use.
I'm guessing of course but it's a normal sales trick in any market.
sideways sid said:
I'm sure that will be covered in the T&C, otherwise every cash buyer would opt for finance, pocket the dealer contribution & repay the balance with cash within the cooling-off period.
The other half bought a DS3 using manufacturer contribution and finance, then paid the finance back before the first payment. Didn't have to repay the manufacturer contribution and we were quite upfront with the dealer on our plan. blade7 said:
BMW offer what they call a "dealer finance deposit contribution", does anyone know if settling the finance in full within say 14 days would require the repayment of the deposit contribution also ?
I'll set the record straight as I'm a dealer.You can settle the finance at anytime and you'll get a rebate on the interest for the period of the time you haven't had the debt for. Eg. 48 month finance agreement, £1,500 charge for credit, settle after 24 months, save circa £750 in interest charges.
Last year the EU changed the law so you can withdraw from the finance within 14 days of signing the agreement, this means you have to repay it within 30 days of informing the finance house you want to withdraw.
So, you don't want to WITHDRAW from the finance but SETTLE, If you withdraw you'll have to repay the finance deposit contribution.
As others have said, it's not a trick or scam, but a way to make the purchase cheaper.
HTH
It depends on where the contribution is coming from, I used to sell Mercs new and was quite often common for cash customers to take finance to benefit from the 'Dealer contribution' in this case was coming from the finance company as a subsidy from the manufacturer.
Rule was at least 3 payments had to be made before settling finance, we used to pay customers setup fees etc.
Was very handy when MB were throwing £8k to sell pre facelift S Class's!
Rule was at least 3 payments had to be made before settling finance, we used to pay customers setup fees etc.
Was very handy when MB were throwing £8k to sell pre facelift S Class's!
Maz_uk said:
It depends on where the contribution is coming from, I used to sell Mercs new and was quite often common for cash customers to take finance to benefit from the 'Dealer contribution' in this case was coming from the finance company as a subsidy from the manufacturer.
Rule was at least 3 payments had to be made before settling finance, we used to pay customers setup fees etc.
Was very handy when MB were throwing £8k to sell pre facelift S Class's!
Was that a dealer rule to avoid commission clawback?Rule was at least 3 payments had to be made before settling finance, we used to pay customers setup fees etc.
Was very handy when MB were throwing £8k to sell pre facelift S Class's!
At jag there was no such requirement.
I worked in car sales for a short while, for Ford. They did Finance Contributions and we were actively encouraged by Ford Finance to tell cash buyers about them and suggest they took advantage and settled immediately. There was no clawback of commissions from the dealer, and it helped with finance penetration figures.
It's just a way for car manufacturers to quietly discount cars without it showing up as them offering massive discounts off of list prices. Lets face it, no one's really going to pay £20K for a mid range petrol engined Focus.
Total PITA as had to prop every customer for finance even though they didn't want it just to access the discounts.
It's just a way for car manufacturers to quietly discount cars without it showing up as them offering massive discounts off of list prices. Lets face it, no one's really going to pay £20K for a mid range petrol engined Focus.
Total PITA as had to prop every customer for finance even though they didn't want it just to access the discounts.
Ari said:
I worked in car sales for a short while, for Ford. They did Finance Contributions and we were actively encouraged by Ford Finance to tell cash buyers about them and suggest they took advantage and settled immediately. There was no clawback of commissions from the dealer, and it helped with finance penetration figures.
It's just a way for car manufacturers to quietly discount cars without it showing up as them offering massive discounts off of list prices. Lets face it, no one's really going to pay £20K for a mid range petrol engined Focus.
Total PITA as had to prop every customer for finance even though they didn't want it just to access the discounts.
Interesting. Jag Financial Services, who at the time were a subsidiary of Ford Credit would claw back our commission on settlements within 90 days.It's just a way for car manufacturers to quietly discount cars without it showing up as them offering massive discounts off of list prices. Lets face it, no one's really going to pay £20K for a mid range petrol engined Focus.
Total PITA as had to prop every customer for finance even though they didn't want it just to access the discounts.
I'm looking at a £2000 contribution towards a 435D but can't get a direct reply to my question will their be any penalties or claw backs if I pay the car off sooner. Some dealers say yes that their will be penalties but can't tell me what others say I must pay at least 6 payments so I am totally confused here.
I know the dealer will loose out if I can pay it off within the 14 days so what!! they will be making profit on the car that they are selling me anyway and I am just one they are a Worldwide company so can soak it up no problem.
Does anyone know where I can get a copy of the T&C for PCP & Finance contributions.
Sorry to hijack your thread Op.
I know the dealer will loose out if I can pay it off within the 14 days so what!! they will be making profit on the car that they are selling me anyway and I am just one they are a Worldwide company so can soak it up no problem.
Does anyone know where I can get a copy of the T&C for PCP & Finance contributions.
Sorry to hijack your thread Op.
Edited by ljw2k on Saturday 23 September 02:34
Just use your right of withdrawal from the agreement; 14 days from the date that the agreement was signed, you can withdraw, phone the finance company up and pay off what you borrowed, plus a few days interest, it is your legal right and you will still take advantage of any deposit contribution.
The dealer may lose out but hey ho, and this is coming from someone in the trade!
The dealer may lose out but hey ho, and this is coming from someone in the trade!
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